Pursuing and developing exploration project opportunities in Latin America

Projects

THE BRAZIL PROJECT (Pending Completion) CONCESSION BLOCK REC-T-170

Block REC-T-170 is a 6,909 acre (gross) exploration block located in Brazil’s Recôncavo basin in which the Company will have a 50 percent working interest in the shallow formations and a ten percent working interest in the deep formations if the Brazil Acquisition is completed. The Company will also be fully carried on the first commitment well, which is anticipated to cost $5-6 million to drill, log and case. 

Map of the Recôncavo Basin, Brazil with Zoom Area of Block REC-T-170

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Block REC-T-170 is located five kilometers from infrastructure at the Miranga Field. Two other fields are located on opposite flanks of the same shale diapir and validate the trapping mechanism.

The Company’s objectives in Block REC-T-170 will be twofold. The first objective will be to drill to the stacked Cretaceous syn-rift deltaic and turbidite sandstones of Santiago, Pojuca, Catu and Caruacu formations. The second objective will be to drill to the shallow gas sands of the Pojuca formation.

History of Block REC-T-170

In July 2011, Canacol Energy Ltd. received the final approval from Brazil’s National Petroleum Agency, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (“ANP”), to acquire a 75 percent working interest and operatorship of Block REC-T-170. PetroVista held the remaining 25 percent working interest, which they later assigned to Canacol Energy Ltd. in exchange for a 5 percent gross overriding royalty. In 2013, Canacol Energy Ltd. entered into a farm-out of Block REC-T-170, whereby the farmee agreed to pay 100 percent of the costs of commitment well in exchange for providing Canacol Energy Ltd. a 50 percent/10 percent working interest in the shallow/deep zones, respectively.

Commitment Well

If the Brazil Acquisition closes, the Company anticipates that a commitment well will be drilled targeting the Fazenda Buril multi-zone prospect (main and shallow zones). It is anticipated that the commitment well will cost approximately $5.6 million (civil works, drill, log and case); however, the Company will be fully carried in this commitment well. The primary objective is the stacked Cretaceous syn-rift deltaic and turbidite sandstones of Santiago, Pojuca, Catu and Caruacu formations. The secondary objective is the shallow gas sands of the Pojuca formation.