PXP Energy Corp. said on Monday that its petroleum exploration partner had signed a rig assignment agreement with the owners of a drill ship for the drilling of Peru Z-38 — Marina-1X well in January 2020.
“This prospect will be the first well drilled in Block Z-38,” the company told the stock exchange.
PXP Energy said the disclosure was announced on Nov. 15 by Karoon Gas Australia Ltd., which signed the rig assignment agreement, along with Tullow Oil Peru Ltd., with Stena Drilling Ltd, the owner of drillship “Stena Forth.”
Pitkin Petroleum Ltd., a 53.43%-owned subsidiary of PXP Energy, holds a 25% participating interest in Peru Block Z-38 located in offshore Peru.
“The Marina prospect has an unrisked best estimate prospective resource of 256 mmbbls [million barrels] (64 mmbbls net to Pitkin),” it said.
Pitkin is carried in the cost of Marina-1X and a second future well under a farm-in agreement signed in 2008 with Karoon, an international oil and gas exploration company with projects in Australia, Brazil and Peru.
In its announcement, Karoon said the “Stena Forth” had been contracted to drill one well — the Marina-1 exploration well — in its 40%-owned and -operated Block Z-38 in the Tumbes Basin in Peru. Drilling is scheduled to start early in the first quarter of 2020.
“The drillship assignment agreement provides Karoon with a single well slot from the existing rig contract between Tullow and Stena,” it said.
“Karoon has the objective and commitment to undertake safe and secure operations, which protect employees, local communities, the environment and material assets. Karoon has been operating social and environmental programs in Peru for the past 10 years which includes a commitment to engaging with local communities affected by our operations,” it added.
In early 2018, PXP Energy said Karoon had announced the farm-out of a 35% interest in Block Z-38 to Tullow Peru, a wholly owned subsidiary of Tullow Oil plc.
On Monday, shares in PXP Energy closed higher by 0.49% at P12.26 each. — Victor V. Saulon
