Mobil Exploration & Producing Peru Inc. continues to find more gas in southeastern Peru, bolstering prospects for the Camisea gas project that it once had co-sponsored.
Although they withdrew from the Camisea project last year, Mobil and partner Royal Dutch/Shell remain interested in pursuing the project, for which the Peruvian government will hold a new tender this year.
Mobil strike
Mobil is testing a potential gas find in the Candamo 1-X exploratory well on the Madre de Dios basin's Block 78 in Peru's southeastern region neighboring Bolivia.
Mobil, which had tested more than one horizon before completing its well on Feb. 26, has reported indications of gas and some fluorescence.
The company expects to finish tests at the Candamo 1-X, its first exploration well on the block, by mid-April.
Mobil has been exploring the block since 1996 in association with units of Elf Aquitaine and Exxon Corp. Each company holds one third of the contract.
A new gas find would increase Peru's natural gas reserves in its southeastern jungle region.
The Camisea fields, which Shell discovered in a 1981-87 exploration campaign, have estimated reserves of 9 tcf out of a total 12 tcf of gas in place.
Camisea's gas liquids content, including condensate, is 60 bbl/MMcf, according to a report recently presented by Perupetro SA, the oil regulatory agency, at a Latin oil and gas conference in Miami.
Contract extensions
Mobil, in partnership on Block 78 with Elf Petroleum Peru BV and Esso Exploration & Production Peru Ltd., has obtained a 5-month extension from Perupetro on the block's exploration period, which expired Mar. 26.
In a third exploration period, slated to begin after Aug. 26, Mobil would be committed to either drill a new well or acquire 300 line-km of 2D seismic over the block.
The original terms of the third period required Mobil to drill another exploration well, but the company requested more time for seismic.
Meanwhile, the Shell-Mobil combine, under a separate contract, continues to explore Block 75, where on Oct. 29, 1998, it disclosed a major gas find on the Pagoreni prospect on the same trend as the Camisea fields.
Perupetro has given the two firms an extension of up to 6 months on Block 75. The combine's 2-year exploration period had been due to expire Mar. 19.
The companies estimate Pagoreni reserves at 3 tcf of natural gas.
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