Peruvian offshore block could hold almost 1 billion barrels of oil

Baron Oil said its Peruvian block in the offshore Talara Basin might hold some 900 million barrels of oil recoverable.

This is a figure the London-listed, South America-focused oil company revealed on Wednesday,  providing the latest estimates of Unrisked Prospective Resources for blocks Z-34 in Peru.

According to Baron, the estimations were carried out by in-house and consulting geologists of Baron Oil and its Z-34 block partner Union Oil & Gas Group (UOGG).

UOGG holds an 80 percent stake in the 2,968 square kilometer block, with Baron owning the remaining 20 percent.

Providing estimates for the three prospects located in the block, Baron said that Cuy, Cuy Sur, and Daphne prospects held gross unrisked best estimate (P50) prospective resources of 413, 200, and 272 million barrels of oil recoverable respectively – 885 million in total.

According to Baron, the Cuy prospect could be the first one to be drilled. All three prospects are situated in the northern half of the Block.

Baron also said that the 3D seismic in the southern half of the Block has not yet been re-evaluated in detail, and that Union Oil & Gas Group continues to seek a partner to farm into the block to drill one or more wells. In its operational update in September, Baron said UOGG was carrying out a survey of rig availability, noting that availability of deepwater drillships has improved and costs have been reduced significantly.

Onshore estimates

As for the onshore acreage, in the Block XXI, also located in Peru, Baron on Thursday provided estimates for the prospect mapped on the recently recorded 2D seismic grid; El Barco Shallow prospect is seen as containing 6.4 Billion Cubic Feet of Gas Recoverable, while El Barco Deep could hold 7.1 Million Barrels of Oil Recoverable

Both targets could be accessed by a single well, Baron said, adding it has been in talks over well costs and timing with potential drilling contractors. The company hopes to be able to drill a well in the middle of 2017. It also plans to bring in a partner to share the cost of drilling.

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