Onshore / Exploration
Envoi has been engaged by PetroSantander Inc., a private, Houston-based production company which, as part of its assets in Colombia, has been operator of the Las Monas Block since 1995, including the three producing (La Salina, Corazon and Payoa) fields this contains, situated in the prolific multibillion barrel oil and gas producing province of the Middle Magdalena Valley Basin, onshore northern Colombia.
Although PetroSantander’s 70% equity in the Las Monas Block production is not included in the opportunity, PetroSantander also own and operate 100% of the remaining exploration potential and have imaged and mapped the very large San Benedicto sub-thrust exploration prospect in their Block, which is estimated to be capable of containing in excess of 200 MMbbls recoverable. This is well defined on 3D time and depth images, deeper in the section, immediately beneath the existing three fields. These have already recovered more than 500 MMboe from excellent quality stacked Tertiary (Palaeocene to Miocene) aged fluvial reservoir sands trapped in the shallower thrusted anticlinal closures associated with the large Las Monas Fault system that runs N-S through the Block.
The large San Benedicto closure, thought to be one of the largest undrilled structures remaining in the proven play fairways of Colombia, is created by the deeper sub-thrusted foot wall of the Las Monas Fault where the same Tertiary plays, already proven in the hanging wall by the three existing fields, are interpreted in the San Benedicto closure immediately beneath the Salinas field. Although the San Benedicto prospect was originally defined on the historical 2D data, this very large undrilled sub-thrust structure has now been accurately mapped in both time and depth and interpreted on the new high-quality 3D data. The prospect covers an area of 2,900 acres with 2,000 feet of closure. The entire play is more than adequately sourced by thick organic-rich Cretaceous shales immediately underlying the Tertiary objectives. These are themselves sealed by the numerous interbedded shale units in the thick Tertiary stratigraphy. Although undrilled, the San Benedicto closure is not alone and has an almost direct analogue, already proven by the large footwall Cantagallo – Yarigui field which contains an estimated 160 MMbo + 85 Bcfg reserves on the opposite side of the basin.
PetroSantander intends to drill a well to test the San Benedicto structure in late 2018.
An unsual and very attractive element of this prospect is that it directly underlies PetroSantander’s oil and gas fields with substantially underutilized infrastructure which would be available for immediate production and cash-flow generation should a discovery be made.
PetroSantander is offering an option to earn a 50% interest in the deep San Benedicto opportunity (excluding the existing shallower production) for an initial risk investment of one exploration well (est. US$ 10 -12 million completed), plus one appraisal well and half the costs of the seismic survey (US$ 6 million gross). The farmee would receive revenues from production to help fund any development. Ecopetrol has the right to back in for a 30% interest in any commercial discovery, by paying their share of all costs related to such, which would reduce an incoming party’s 50% equity to 35%.