AVD Expands Resource Potential in Onshore Peru
Antilles Oil & Gas (ASX:AVD) has clarified the potential of its prime resource in onshore Peru. AVD’s asset (Block 105) is located in the Titcaca Basin on trend to historic producing field Pirin. AVD first announced prospective resources of 29.6 million barrels (MMBO) earlier this year and estimated a further 100MMBO to be present within the deeper portions of its Block 105 asset in Peru.
In the announcement, AVD published some numerical estimates to update its overall position in Block 105:
The mean potential resource at Block 105 is 80.4MMBO which equals an overall total of 110MMBO when combining both shallow and deep resources.
The added estimate confirms that AVD’s Block 105 is highly prospective at both shallow and deeper depths and raises anticipation for AVD’s new well to commence next year.
AVD has a 50% equity holding in Block 105, with exploration drilling planned to begin in mid-2016. The upcoming well and other exploration activities will be conduct alongside its farm-in partner, Union Group, who will fund up to 75% of the cost.
AVD Managing Director David Ormerod is looking forward to 2016 and sees the combined potential of both the shallow and deeper resources as “very attractive”.
“The two target levels can be drilled in the one well which is currently planned to a depth of 2000m. The combined potential of the two levels makes this a very attractive drilling candidate,” said Mr. Ormerod.
More on AVD: Offshore Ambitions
In addition to its onshore activity, AVD is also pursuing offshore exploration in the Sechura basin in north-east Peru by acquiring the right to a Technical Evaluation Agreement (TEA) for an acreage position in onshore Peru. AVD retains a 100% equity holding in the agreement with the site located within 50km of existing production.
To expedite and streamline future exploration and surveying, AVD has partnered with offshore marine explorer (Polarcus) an offshore driller (AGR Brown). Both companies will conduct technical work for AVD as part of its deep-water exploration activity.
The investment is an agreement with the regulator ‘Perupetro’ for the right to evaluate the area and move to an exploration license in future. The fiscal terms of the area are highly attractive with low associated costs and a network of major highways allowing export via road.