Page 15 - LatAmOil Week 05 2022

LatAmOil NEWS IN BRIEF LatAmOil

Llanos 34 Block: Low risk development and new SEC (US Securities and Exchange Commission)
field extensions with reserve upside potential regulation, estimated at 9.88bn barrels of oil
to be tested in 2022. Net PD reserve additions equivalent (boe), as of December 31, 2021. Oil
of 12.0mn barrels (a 131% PD reserve replace- and condensate, and natural gas correspond to
ment). Net 2P reserve additions of 7.3mn barrels 85% and 15% of this total, respectively.
(a 78% 2P reserve replacement). Net 3P reserve In 2021, Petrobras made the biggest reserves
additions of 9.5mn barrels (a 100% 3P reserve addition in its history (1.97bn boe), resulting in
replacement). 1P RLI of 7.9 years, 2P RLI of 11.5 a reserves replacement equivalent to 219% of
years and 3P RLI of 16.0 years. the year’s production, already considering assets
Average gross production in 2021 was 55,971 sales. These results are an evidence of our path of
bpd with an exit rate above 60,000 bpd. improving our management system, with focus
CPO-5 Block: Continued strong reser- on maximizing our assets value generation.
voir performance in the Indico oilfield. Net 1P We added reserves mainly due to the progress
reserves of 5.1mn barrels, Net 2P reserves of in the development of Búzios field, as a result of
20.0mn barrels and Net 3P reserves of 48.8mn the acquisition of the Transfer of Rights Surplus
barrels (1P RLI of 3.6 years, 2P RLI of 14.7 years and of the signing of the coparticipation agree-
and 3P RLI of 36.1 years). ment, and of investments in new projects to along with elevated mud gas readings and asso-
The 2021 drilling campaign initiated in increase recovery in other fields in Santos and ciated hydrocarbon fluorescence of up to 95%.
December 2021 with the spud of the Indico 4 Campos Basins, in addition to appropriations The high-quality shows have been recorded from
development well. The operator, ONGC Videsh, related to the good performance of reservoirs. 3,055 to 3,200 metres MD to date (over a gross
is accelerating drilling activities in 2022 targeting The increase in reserves was also driven by the interval of 145 metres) to date which also con-
to drill 7-8 gross wells (1-2 development wells appreciation of the oil price. tains zones with good indications of fracturing
and 6-7 exploration wells) with two contracted The R/P ratio (ratio between proved reserves (that is likely to provide enhanced deliverability
drilling rigs. and production) increased to 11.0 years. from the reservoir). There was also fluorescence
Consolidated Reserves. PD Reserves: PD Petrobras historically submits at least 90% (but not as high gas) starting at 2,900 metres
reserves of 58.1mn boe, with a PD RLI of 4.2 of its proved reserves according to SEC defini- with some oil in samples and on shakers from
years. 1P Reserves: 1P reserves of 91.6mn boe, tion to independent evaluation. Currently, this 2,950 metres MD. After completing a wiper
with a 1P RLI of 6.7 years. NPV10 after tax of 1P evaluation is conducted by DeGolyer and Mac- trip, drilling is now continuing through the N
reserves of $1.4bn. 2P Reserves: 2P reserves of Naughton (D&M). Sheet toward the prognosed base of the interval
159.2mn boe, with a 2P RLI of 11.6 years. NPV10 Petrobras also estimates reserves according expected at 3,400 metres. Further information
after tax of 2P reserves of $2.3bn. 3P Reserves: 3P to the ANP/SPE (National Agency of Petroleum, will become available once wireline logs have
reserves of 248.3mn boe, with a 2P RLI of 18.1 Natural Gas and Biofuels/Society of Petroleum been acquired over the interval and interpreted.
years. NPV10 after tax of 3P reserves of $3.4bn. Engineers) definitions. As of December 31, The next Primary Target is the Alameda (I
Future Development Capital: Future devel- 2021, the proved reserves according to these Sheet) limestones penetrated by Marti-5, which
opment capital to develop 1P, 2P and 3P reserves definitions reached 10.29bn barrels of oil equiv- recorded significant oil shows from the interval
of $2.0 per barrel, $2.3 per barrel and $2.2 per alent (boe). The differences between the reserves and hydrocarbon recoveries were reported. This
barrel, respectively. estimated by ANP/SPE definitions and those target is interpreted to be separated from the cur-
Portfolio Management: Divestment of non- estimated using SEC regulation are mainly due rent N Sheet by a thrust fault and another repeat
core Aguada Baguales, El Porvenir and Puesto to different economic assumptions and the pos- of the Vega Alta seal.
Touquet (GeoPark operated, 100% WI) blocks in sibility of considering as reserves the volumes This following more detailed review is for the
Argentina and of the Manati gas field (GeoPark expected to be produced beyond the conces- information of investors – in particular, those
non-operated, 10% WI) in Brazil are currently sion contract expiration date in fields in Brazil who would like more technical information,
underway, representing 100% of GeoPark’s according to ANP reserves regulation. who have been following progress with this well.
reserves in Argentina and Brazil. Petrobras, January 28 2022 Melbana’s technical directors, Peter Stick-
Excluding reserves from Argentina and land and Michael Sandy, are geologists who
Brazil, GeoPark’s consolidated reserves would collectively have extensive experience of thrust
amount to 53.7mn boe, 86.6mn boe, 153.1mn PROJECTS & COMPANIES belts such as in Cuba, and here are some of their
boe and 241.4mn boe of PD, 1P, 2P and 3P observations:
reserves, respectively. Melbana Energy announces The unexpected shallow discovery: “We have
Net Present Value and Value Per Share. both found that nearly every well generates some
GeoPark’s 2P NPV10 after tax of $2.3bn. drilling update at Alameda-1 unexpected results, and this is particularly true
GeoPark’s net debt-adjusted 2P NPV10 after of wells in thrust belts where the data quality
tax of $28.9 per share ($24.0 per share corre- Melbana Energy has provided an update on its is often poor and the geology highly complex.
sponding to Colombia). drilling operations at its Alameda-1 exploration While the 670 metres of oil encountered in
GeoPark, January 31 2022 well in its Block 9 contract area onshore Cuba. Alameda-1 from a depth of 454 metres was an
The Alameda-1 8.5-inch hole section has unexpected bonus, we are aware of numerous
Petrobras discloses proven now been drilled through the Vega Alta seal and examples of serendipitous discoveries elsewhere.
is currently at a depth of 3,200 metres within It is possible to increase the chances of find-
reserves as of end-2021 the first of the Primary Targets referred to as the ing ‘unexpected’ oil by drilling in very oil rich
N Sheet. Strong oils shows have been recorded regions where oil has been found throughout the
Petrobras has disclosed its proved reserves of from limestones within the unit. Free oil has geological column. Cuba is one such place. You
oil, condensate and natural gas, according to been observed within the mud system at surface could say you make your own luck.”

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