PXP ENERGY Corp. said on Thursday that the drillship for an exploration well in Peru had reached the area for a late January schedule to spud, the listed company told the stock exchange on Thursday.
The disclosure came from an announcement in Australia by Karoon Gas Australia Ltd. about the arrival of Stena Forth Drillship in the Port of Callao in Lima, Peru ahead of drilling the Marina-1x exploration well located in Block Z-38 Tumbes Basin, Peru.
“The Stena Forth will remain at the Port of Callao for one to two weeks to refuel and change the crew before continuing on to the Marina-1x well location,” PXP Energy said.
“Karoon expects the vessel to clear customs and final permits to be received over the coming weeks. The well is expected to spud during the last week of January 2020,” it added.
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.
Peru Block Z38’s Marina prospect has an unrisked best estimate prospective resource of 256 million barrels, of which 64 million barrels is the net to Pitkin. The prospect will be the first well to be drilled in Block Z-38. Pitkin is carried in the cost of Marina-1x and a second future well under a farm-in agreement signed with Karoon in 2008.
The Marina prospect comprises a large fault bounded structure with targets at multiple levels. The structures are well defined by 3D seismic.
“Nearby hydrocarbon seeps demonstrate that migrating hydrocarbons are present, supported by seismic AVO anomalies indicative of trapped oil at Marina,” Karoon said in its disclosure in Australia.
Karoon’s wholly owned subsidiary, KEI (Peru Z-38) Sucursal del Peru, owns a 40% operating equity interest in the blocks with Tullow Oil Ltd. holding 35% and Pitkin Petroleum holding the rest.
On Thursday, shares in PXP Energy climbed 11.65% to P10.06 each.
