Project Profile
Location: NE Guatemala and adjacent Mexico, NW Belize
Area: 315 sq km
Reserves: 329MMbo (estimated)
Depth: 10,490ft
Start-up Year: 2012
The Blue Creek Project consists of one 315 sq km onshore oil concession divided into two blocks located in NW Belize. The two blocks, Blue Creek and West Gallon Jug, are granted under a Production Sharing agreement with the government of Belize. The concession lies in the hydrocarbon producing Petén Basin that extends across northern Guatemala into northern Belize and southeast Mexico. Within 34 days of listing, New World Oil and Gas completed a Farm-Out Agreement (\'FOA\') to acquire up to a 100% participating interest in the Production Sharing Agreement (\'PSA\') with the Belizean government over the Blue Creek Project, subject to the completion of a staged work in programme. The programme consists of a four phase 2-D seismic acquisition programme and the completion of three exploration wells. The Company’s partner, Blue Creek Exploration Ltd, will revert to a 5% overriding royalty interest upon New World having earned the full 100% participating interest. The western edge of the Blue Creek Project is adjacent to a 20,000ft deep sub-basin in NE Guatemala and adjacent Mexico.
2012 saw the commencement of a drilling programme in Belize. The first well, Blue Creek#2, commenced drilling at the end of September 2012 on the B Crest Prospect that had been assigned a P50 resource estimate of 329MMbo by RPS. Because of the reduction in drilling costs, and having not seen clear evidence of oil accumulating in the Y1 and Y2 formations, the decision was taken to drill deeper to the Y3 and Hill Bank Formations. Live oil shows were also encountered in these deeper formations and a well was drilled to a depth of 10,490ft. Due to a high level of water saturation in these lower formations, Blue Creek #2 was deemed to be non-commercial, but as a result of the encouraging shows, a decision was taken to drill a side-track well, the Blue Creek#2A ST, to place the bottom hole location of the well up dip to the original planned bottom hole location in an effort to locate a trap.
Operators:
New World Oil and Gas: Operator with 100% interest
Contractors:
Subcontractors: