Next Investors logo grey

AVD Expands Resource Potential in Onshore Peru

Published 16-NOV-2015 16:26 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

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:

Next Investors Image

Antilles Oil & Gas – Block 105 Sumary

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.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.