Page 10 - LatAmOil Week 37 2019.pdf

LatAmOil
NEWS IN BRIEF
LatAmOil
UPSTREAM
Geopark expands Latin
American portfolio with
new low-cost exploration
acreage added in Brazil
GeoPark, a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colom- bia, Peru, Argentina, Brazil, Chile and Ecuador, today announced the expansion of its portfolio with four new exploration blocks in the Recon- cavo and Potiguar basins in Brazil. GeoPark was preliminarily awarded the REC-T-58, REC- T-67, REC-T-77 and POT-T-834 blocks in the first cycle of the permanent offer held by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP).
The acquired blocks represent low-risk and low-cost exploration acreage, strengthening GeoPark’s existing portfolio in the Reconcavo and Potiguar basins and adjacent to existing pro- ducing fields. The Reconcavo blocks are located nearby GeoPark’s recent light oil discovery, Praia dos Castelhanos, in the REC-T-128 block (GeoPark operated, 70% working interest). The blocks cover an area of 30,731acres in aggregate (or 124 square km). GeoPark has preliminarily identified multiple oil prospects and leads, based on existing 3D seismic and other relevant data. GeoPark will be the operator with a 100% work- ing interest.
The company has committed to invest a min- imum of approximately $1.3mn in aggregate (including bonus and investment commitments) during the first exploration period of five years. The winning bids are subject to confirmation of qualification requirements by the ANP.
James F. Park, CEO of GeoPark, said: “GeoPark continues to expand block by block in the most attractive proven Latin American hydrocarbon basins and cost-effectively assem- ble a unique risk-balanced short-, medium-, and long-term inventory of exciting new growth projects.”
GeoPark, September 12 2019
Talos Energy receives
extension and approval for
additional exploration at
Block 7 offshore Mexico
Talos Energy today announced that it has received a two-year contract term extension as well as regulatory approvals for additional
exploration activities on Block 7, located in the offshore portion of Mexico’s prolific Sur- este Basin. Talos is the operator of Block 7 in a consortium with its partners Sierra Oil & Gas, a Wintershall DEA company, and Premier Oil.
On September 4, 2019, the National Hydro- carbons Commission of Mexico (CNH) granted a two-year term extension under the consorti- um’s production-sharing contract for offshore Mexico Block 7, the first such extension granted to a private company in offshore Mexico. On September 9, 2019, the CNH approved the con- sortium’s modified exploration plan for Block 7. The extended contract term in combination with the expanded plan allows the consortium to evaluate additional exploration prospects on the block in the future following the successful appraisal of the globally-recognised Zama dis- covery that was completed earlier this year.
The Consortium has identified multiple potential exploration targets on Block 7, includ- ing the Xlapak and Pok-A-Tok prospects, among others, with typical gross unrisked resources ranges between 75mn and 150mn barrels of oil equivalent (boe) each. The prospects are amplitude-supported oil prospects targeting similarly-aged sands as those seen in the drill- ing campaign related to the Zama discovery and subsequent appraisal. The additional identified inventory is within close proximity of Zama, potentially allowing for significant development cost synergies if successful.
Due to the recent high level of activity on Block 7, the consortium has already fulfilled the minimum work commitments that would oth- erwise be required for extension, and any future exploration activities would benefit from cost recovery mechanisms under the Block 7 con- tract terms.
As a result, the modified exploration plan and related approvals provide the consortium with significant optionality for future evaluation of additional, material exploration prospects
within the block. The Block 7 production-shar- ing contract requires the consortium to relin- quish approximately half the acreage on Block 7 upon obtaining the two-year term extension, but the Block 7 modified exploration plan, approved by CNH, retains the acreage covering all of the consortium’s identified potential exploration targets.
Talos President and CEO Timothy S. Dun- can commented: “The recent CNH approvals have provided Talos and its partners with the flexibility to continue optimising the potential of Block 7. The consortium has significantly over-delivered on its commitments under the production-sharing contract, and these approv- als will give us the opportunity to continue to successfully develop the country’s resources. We are excited about the additional potential of these prospects, all of which could be incremen- tal to our world-class Zama discovery, the first by the private sector in Mexico’s history. Finally, we believe these approvals, in combination with the significant increase in industry activity, are yet another indicator of the tremendous potential of the basin in the future.”
Talos Energy, September 11 2019
DOWNSTREAM
Equinor: Oil spill recovery in progress in the Bahamas
Equinor is progressing oil spill recovery at the South Riding Point terminal in the Baha- mas after the impact of Hurricane Dorian. An onshore team has started to recover oil and move it into tank storage.
A response team continues to assess the dam- age and plan the recovery work. Initial recov- ery assets have been deployed and additional machinery and equipment is being added.
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Week 37 19•September•2019