North America: Others

NORTH AMERICA

Others

Guatemala. Texas-based WesPac Technologies and partner Tradestar Corp. bought most of the shares of PetroRamrod, which had the rights to concessions 1-95 and 2-95, covering about 300,000 acres in the North Peten basin. After acquiring 210 sq mi of 3-D seismic, three major prospects were identified.

Anadarko Petroleum is continuing a workover program that began last year through its subsidiary, Basic Resources, to increase local production, which is expected to be about 22,000 bopd this year. A Guatemalan environmental group is suing Basic and the government, claiming, among other things, that officials had no right to issue E&P permits, because the lease areas lie within a national park.

Belize. In March 2000, farmer Peter Margassen struck oil while drilling a 130-ft water well in the Cayo district near Calla Creek. The Geology and Petroleum Department confirmed the oil shows, and said that the oil was about 26°API gravity and had a 2.4% sulfur content. In 1990, an oil seep was discovered at Clarissa Falls, which lies 1 mi from Calla Creek, but was never tested. A local oil company, Belize Oil Exploration and Drilling, was reported in April to be negotiating for an option on Block 5, which includes the Calla Creek show.

According to Upstream, Houston-based AB Energy has some internal disagreements that caused a corporate split. The result is the formation of new companies, Island Oil and U.S. Capital, which split AB Energy’s Belize concessions. AB had intended to drill its Gallifuna prospect in March 2000, but that is now delayed. Before the split, AB had added 14,000 acres to its offshore permit after reprocessing some older Western Geophysical seismic data.

Texas-based Gryndberg Petroleum won a seven-month extension on two northwestern-area onshore leases, due to the government’s delay in delivery of some seismic data. The lease abuts the Calla Creek oil show. The hope is that Guatemala’s Coban oil trend extends into Belize. A visit to Belize from Guatemalan operator Basic Resources could help settle border disputes exacerbated by any potential border-area discoveries.

Greenland had a disappointment last year, when the first exploration well drilled off its western coast in 25 years came up dry. Located in the Fylla license, Qulleq 1 was drilled to an 8,977-ft TD. Statoil and partners gave up the license, and all data pertaining to the well has been released. A CD containing licensing, geology (source rocks, prospectivity, play types, etc.), operational conditions and more is available at no charge through the government (GEUS, BMP or Nunaoil).

Last year, three regional seismic surveys were acquired, covering 4,039 mi (6,500 km). New 2-D seismic data acquired by TGS-Nopec across the Canada / Greenland border revealed numerous, large sedimentary structures. This fall, Greenland and the seismic contractor will begin GreenCan2001, a seismic survey covering at least 1,865 mi (3,000 km).

The government delayed its next exploration round because of plans to lower taxes on E&P contracts, which have yet to be approved. The round could begin by year-end. The entire area between 63° and 68° N latitude is expected to be offered.

Costa Rica could see an exploration well drilled in third-quarter 2001. Harken Energy expects to spud its first well on the offshore Moin prospect. The well will target both Tertiary- and Cretaceous-age rocks in a large, closed-anticlinal structure that is a about 80,000 acres in extent. The company was last reported to be seeking partners on the well.

Panama may witness the connection of North and South America’s pipeline infrastructure. The planned Mexico-Guatemala pipeline is under consideration for extension to Panama. Neighboring Colombia approved a bill last year that would allow gas exports to Panama via pipeline. EOG said it would invest $400 million to build the pipeline. No doubt, Colombian guerillas will play a role.