Portugal’s oil and gas authority DPEP has approved the development and production plan of Porto Energy Corp., The Woodlands, Tex., to pursue commercialization of an onshore resource play in Portugal.
During an upcoming 5-year term, Porto will execute a work program focused on commercializing the Lias resource play in one or more areas on its 1.5 million acres of onshore concessions. After 5 years, it will perform a secondary production evaluation and may convert the concessions to a 25-year production lease. The DPEP approval ensures that the company is able to progress towards a timely and organized investment schedule.
Porto will also relinquish 147,000 acres or 7.5% of its offshore concession area. All of the relinquished area is outside of its currently mapped prospects that have been identified using 3D seismic shot in late 2011. The company continues to work with DPEP regarding its offshore acreage and anticipates approval of this plan by the end of September 2012.
Porto is working with consulting engineers on an independent resource report for its offshore concessions which will incorporate all of the newly mapped and identified prospects. The company plans to use the report to formally launch a joint venture process for its offshore concession areas prior to the end of 2012.