[For more information on the industry and the insiders’ perspective, check out Mexico Oil & Gas Review]
Today, July 12 2017, the Sierra O&G, Talos Energy and Premier Oil consortium officially announced a significant historic oil discovery in the Zama-1 well. The well is located inside Block 7, which was awarded to the consortium in 2015, during Round 1.1.
The drilling of the well began on May 21, 2017, and after only 52 days of work the team hit first oil. Preliminary studies of the crude evaluate it to be light oil of 28-30 API gravity, and according to initial gross estimates there could be between 1.4-2 billion barrels, exceeding pre-drill estimates.
Zama-1 is the second private offshore exploratory well in Mexico to hit oil after Eni’s Amoca-2 discovery, but is the first discovery achieved in the Round 1.1 fields, which previously had no confirmed reserves. It is located 60km from Puerto Dos Bocas, at a depth of 166m and oil was struck after drilling 3,383m. The interval is estimated to be 335m with 170-200m of net oil pay in Upper Miocene sandstone with no water contact.
The drilling team is installing a liner to protect the discovered reservoirs prior to drilling deeper exploratory targets to a total vertical depth of approximately 4,267m.
Timothy Duncan, President and CEO of Talos Energy said, “This is both a historic and significant discovery, and we could not be prouder of the highly skilled personnel from Mexico and the US who have been working together in a safe and efficient manner to make it a reality”.
According to Iván Sandrea, Director General of Sierra O&G, “The team is getting ready to continue exploration activities on Block 7, and we plan to finalize this well without incidents in the next few weeks. The state will receive 68.99 percent of the operative utility from every produced barrel, meaning around 80 percent after taxes.”
Tony Durrant, CEO of Premier Oil, said, “The oil discovered in the Zama-1 well is an extremely important event for Premier, the joint venture and for Mexico and we look forward to working with the government and our partners to realize the full potential of this exciting discovery.”
The three partners in the consortium agreed that this is a clear proof of the benefits that the Energy Reform is bringing to Mexico.
Talos Energy (the consortium operator) holds a 35 percent participatory interest with Sierra and Premier holding 40 percent and 25 percent interests, respectively.
For more articles on Mexico’s oil and gas industry, check out our blog here.