Brazil's frontier Parnaiba basin gets gas find

Brazil’s OGX Petroleo e Gas has identified a potential resource of 15 tcf of natural gas on seven blocks in northeastern Brazil’s underexplored Parnaiba basin.

Aug. 17, 2010

2 min read

By OGJ editors
HOUSTON, Aug. 17 -- Brazil’s OGX Petroleo e Gas has identified a potential resource of 15 tcf of natural gas on seven blocks in northeastern Brazil’s underexplored Parnaiba basin.

The 1-OGX-16-MA well, on the PN-T-68 block in central Maranhao state 260 km southwest of Sao Luis, flowed gas on a drillstem test from a 10-m section at the top of Devonian at 1,654 m. OGX reported a 15-m flare and a wellhead pressure of 1,900 psi during the test. Drilling was to continue to 3,450 m.

The indicated discovery is on one of seven blocks that total 21,000 sq km held by OGX Maranhao, a combine of Brazilian firms OGX and MPX Energia SA 70% and Petra Energia SA 30%.

MPX estimated that results of the OGX-16 well and seismic data imply a potential resource of 15 tcf on the seven blocks, on which the companies have mapped 20 prospects, five of which are in the same trend as OGX-16.

Encouraged by the results, the companies increased the number of exploratory wells to be drilled to 15 from 7 and plan to expand 2D and 3D seismic surveying in the area in an exploration program worth 600-700 million reais.

The proposed MPX Parnaiba power generation complex, a partnership between MPX 70% and PETRA Energia 30%, consists of gas-fired plants that are expected to provide up to 1,863 Mw of power. The complex, to be fueled by gas produced on the blocks, has already been granted a preliminary license.