Pursuing and developing exploration project opportunities in Latin America

Projects

THE GUYANA PROJECT (Pending Completion) CONCESSION BLOCK TAKUTU PPL

The Takutu PPL is an exploration licence over an area of 1,540,000 acres (gross) of State lands located in the Takutu Basin, onshore Guyana, adjacent to Guyana’s border with Brazil. If the Guyana Acquisition is completed, the Company will have a 100 percent working interest on the property and the resources, subject to a ten percent private carried working interest relating to the first well, which is held by Takutu Oil and Gas Inc.

To date, two conventional prospects, Rewa and Pirara, have been identified and there is significant unconventional shale resource potential in the area. 

Map of the Takutu PPL, Guyana

Click to enlarge

History of Block Takutu PPL

The Takutu PPL was in Phase 1 of the licence, which expired on May 21, 2014. Phase 1 required the completion of a minimum of one commitment well. This commitment well was not drilled on, or before, May 21, 2014. Phase 2 consisted of negotiable commitments and had a one-year term. The Company is currently negotiating a multi-year renewal of the Takutu PPL.

Action Plan Prior to Drilling the Commitment Well

The Company anticipates that a two-year renewal of the expired Takutu PPL will be granted (prospecting phase). It is a condition precedent to the completion of the Guyana Acquisition that the Vendor shall have obtained such an extension. During this two-year renewal, it is expected that new data will be acquired regarding the Takutu PPL consisting of 2D and probably 3D seismic acquisition programs and magnetic survey programs. Other field data from neighboring selected zones pertaining to the Takutu Basin is also expected to be collected and compiled. All the compiled data will be examined and processed in order to perform a new geological and geophysical evaluation and interpretation (computer modeling) of the concession area with the objective to identify new leads and prospects and define the most suitable location and depth of the commitment well.

The Company further anticipates that, after the geological and geophysical evaluation and interpretation and target location of the commitment well are completed and its location and depth are clearly defined as per the geological and geophysical evaluation and interpretation report, a three-year extension of the existing concession will be solicited and granted to the concessionaires in order to start the drilling program (exploration phase) of the commitment well.

Commitment Well

If the Guyana Acquisition closes, the Company anticipates drilling the commitment well sometime in 2018. It is estimated that the commitment well will cost approximately $6.75 million (civil works, drill, log and case). The primary and secondary objectives of the drilling program will be defined as per the results of the geological and geophysical evaluation and interpretation report. The Takutu PPL is accessible and relatively close to oilfield services in Brazil and Trinidad.