Backgroud

The block is granted by the Mexican state to the operator during the first bid for round three, which is located off the coast of the state of Veracruz, 3 kilometers from the port of Coatzacoalcos.

September 29, 2017, CNH published the first Invitation to Bid of Round 3 and the Guidelines for the Internacional Public Bidding Process CNH-R03-L01/2017.

June 27, 2018, CNH, on behalf of the State, and the contractor executed the Hydrocarbon Exploration and Extraction Contract

April 12, 2019, The Governing Body, by means of Resolution CNH.05.001/19, instructed the execution of the first amending agreement of contract CNH-R03-L01-AS-CS-15/2018.

June 4, 2019,The National Hydrocarbons Commission (CNH) approved the exploration plan submitted by Hokchi Energy for block 15 in the Southeast Basins, in which at least 94.88 million dollars will be invested.

Brief Introduction

Location: off the coast of the state of Veracruz

Contract Area: Area 31

Areas: 262.760 sq km

Current rights and interests

Operators: Hokchi Energy, S.A. de C.V. with 100%

Stockholders: Pan American Energy LLC.

Expected workload

The objective of the plan presented by Hokchi Energy is to evaluate the oil potential in Pliocene and Miocene plays, as well as to identify additional prospects through the reprocessing of seismic information, the realization of new studies and the drilling of two exploratory wells.

The operator presented two exploratory scenarios which contemplate the drilling of two exploratory wells, however, the plans differ in the area where the second would be drilled, which will depend on the results obtained in the studies.

The investment budget for scenario A is 94.88 million dollars, while for scenario B, the operator contemplates an investment of 99.34 million dollars.

Hokchi would start with the drilling of the Olmeca-1EXP well to the south of the block and would continue with the drilling of Zapotecas-1EXP in the center of the area, for which 68.33 million dollars will be invested.