Project Profile
Value: US$10 million
Location: Northwest Peru
Water depth: 3,500m
The Sechura Basin in Northwest Peru produces commercial oil and gas from sandstone reservoirs of the late Eocene (Olympic gas field) and from pervasively fractured Palaeozoic highs (San Pedro oil field). The basin shares Cretaceous and Tertiary stratigraphy with the major producing Talara Basin also in Northwest Peru. Gold Oil holds 100% of a permit to explore Sechura Basin Block XXI. A promotional license was entered into in October 2004 and Block XXI was formally awarded to Gold Oil Peru SAC in December 2005. The licence establishes an exploration period of seven years over five periods. Periods 1 and 2 have been fulfilled and the Company is now in the third period. The third period requires [160km] 2D seismic data acquisition requiring an investment of approximately US$3 million. The licence is currently in suspension while environmental approvals for the seismic acquisition are in process). The port town of Talara, 75 km northwest, is an oilfield hub. The northern Peru crude oil pipeline traverses the southern end of Block XXI to an export terminal on Bayovar Bay. Gas from the Olympic gas field at La Casita is processed onsite and is sold to local industry.
Gold drilled the well San Alberto -1X; in 2006. Good porosity was encountered in the Verdun Formation and fractured Palaeozoic rocks. A gas reading of 15,600 ppm C1 and 1,600 ppm C4+C5 was recorded in the Palaeozoic. Gravity and electrical geophysical methods (DNME) were acquired and San Alberto -2X was drilled in 2008. Both Tertiary and Palaeozoic reservoir was again present and very minor mudlog shows were encountered. Without seismic data it is unclear whether either well was within closure.
Operators:
Baron Oil: Operator with 100% interest
Contractors:
GSS: Seismic contract