Clontarf sees Ucayali oil development potential

Clontarf Energy PLC, Dublin, has completed a detailed work program for reentry of a 1999 indicated discovery well on Block 188 in the Ucayali basin in Peru and is discussing the project with potential industry partners.

Clontarf is in detailed strategic partnership talks that relate to the rest of Block 188 and also to Block 183. Block 188 covers 595,809 ha 100 km northeast of the Camisea gas-condensate fields, and Block 183 covers 396,826 ha in the north central Peruvian jungle.

Repsol and Petrobras have made recent discoveries nearby, and the Camisea fields have gained several extensions. As a result, Clontarf noted, access and infrastructure have steadily improved.

The former Phillips Petroleum Co. drilled the Panaguana structure on Block 188 in 1999. Five horizons had hydrocarbons shows, but only one was tested in which 37° gravity oil was found in the Carboniferous Green sandstones.

Before drilling Panaguana, Clontarf said, Phillips had decided to relinquish the block because of the then low $16 oil price, challenging fiscal terms, and postponed development of Camisea given Shell’s withdrawal in 1996-97. Camisea had been seen as a necessary anchor tenant for further, incremental exploration and development in what was then a remote area.

An appraisal well will have to be drilled to verify the result from the original well. Clontarf said the Phillips on-site staff believed that Panaguana's Green sandstones held 31 million bbl of quality oil estimated at mid-range and that the well had potential in other horizons.

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