Infinity's Nicaraguan Caribbean blocks final

Infinity Energy Resources plans to sell its Rocky Mountain and Barnett shale assets to focus on two blocks in the Caribbean Sea off nonproducing Nicaragua.

By OGJ editors
HOUSTON, Mar. 6 -- Infinity Energy Resources Inc., Overland Park, Kan., plans to sell its Rocky Mountain and Barnett shale assets to focus on two blocks in the Caribbean Sea off nonproducing Nicaragua.

The Nicaraguan government and the company finalized all documents necessary to validate the exploration contracts, Infinity said Mar. 6. The company began pursuing the exploration opportunity in 1999.

Infinity was awarded 24 blocks in May 2003 that cover 1.4 million acres over the Tyra and Perlas prospects in 100 to 300 ft of water.

It said it has secured the capital needed to shoot and process more seismic and proceed with initial environmental studies in the next 12 months.

"Our concessions are located in an area of the Caribbean Sea that is beginning to attract interest among larger exploration and production organizations," including Noble Energy Inc., Infinity said.

"We have also been in contact with a number of international oil and gas companies, including national petroleum companies in several countries, regarding their potential interests in working and-or partnering with Infinity to develop the concessions, subject to any approval required by the Nicaraguan government," Infinity said.

Infinity previously said that exploration will focus on Cretaceous carbonate and Eocene reservoirs. The Cretaceous carbonates are analogous to reservoirs in Mexico, Venezuela, and Guatemala. It said that five large structures underlie the acreage.

More in Exploration & Development