HUNT PLANS TO EXPLORE JUNGLE FRONTIER AREA ON PERMIT IN GUYANA

Jan. 22, 1990

Guyana has granted a petroleum exploration license and production sharing agreement to a unit of Hunt Oil Co., Dallas. The license awarded to Guyana Hunt Oil Co. covers 10,294 sq km, or 2,543,702 acres, encompassing all of the Takutu graben area in Guyana's dense jungle interior. The contract, effective Dec. 22, 1989, calls for an initial 4 year exploration term, with options for two more 3 year terms. It also calls for a 20 year production term.

Guyana has granted a petroleum exploration license and production sharing agreement to a unit of Hunt Oil Co., Dallas.

The license awarded to Guyana Hunt Oil Co. covers 10,294 sq km, or 2,543,702 acres, encompassing all of the Takutu graben area in Guyana's dense jungle interior.

The contract, effective Dec. 22, 1989, calls for an initial 4 year exploration term, with options for two more 3 year terms. It also calls for a 20 year production term.

Guyana Hunt plans to reprocess existing seismic data and to acquire new data and conduct other geological and geophysical studies in the first 2 1/2 year phase of operations.

Thereafter, Guyana Hunt will drill a wildcat to maintain the contract.

Guyana Natural Resources Agency will administer the license and production sharing agreement on behalf of the government.

OIL STRIKE AREA

The license area includes a 1.7 million acre concession awarded to two Calgary companies in 1979 that drilled what was believed to be Guyana's first oil discovery (see map, OGJ, Apr. 26, 1982, p. 102).

Home Oil Co. Ltd. logged flow of 400 b/d of sweet, 45 gravity oil in tests of Jurassic carbonates and Triassic basalt in a severely faulted area. Home held a 100% interest in that well.

Home 72% and partner Ranger Oil (International) Ltd. 28% drilled another well on the concession that was abandoned.

Home's find proved noncommercial. The company dropped the acreage after meeting drilling commitments. Sparsely drilled Guyana has no hydrocarbon production, but exploratory interest has been renewed there in recent years (OGJ, Aug. 8, 1988, p. 20; July 3, 1989, p. 32).