Tierra del Fuego Caupolican block commercial

By OGJ editors
HOUSTON, May 17 -- PetroMagallanes Ltda., Punta Arenas, said three discoveries on the Caupolican block in Chile’s Tierra del Fuego provide a sufficient hydrocarbon base for commercial development.

The most recent discovery is the Josefina Oeste-1 well. PetroMagallanes also said tests at the Rio del Oro-1A discovery on the block yielded hydrocarbons in multiple reservoirs. PetroMagallanes had an earlier gas discovery at Clarencia-1A, but didn’t provide test details (see map, OGJ, Dec. 24, 2007, p. 36).

Gas from this area can be piped to the GASCO-owned facility in the Clarencia area for metering, odorizing, and distribution south to Porvenir. PetroMagallanes has solely funded all discoveries to date.

PetroMagallanes said it awaits confirmation from the gas transmission operator, the 100% state owned company Empresa Nacional del Petroleo, that the gas discovery at Clarencia can be connected to an unused pipeline within 500 m of the Clarencia wellsite.

PetroMagallanes has confirmed there should be no obstacle to interconnection, which will provide ENAP with revenue from the transport and LPG stripping before it delivers the gas to Methanex at Cabo Negro under an existing agreement.

ENAP delays have prevented Caupolican block gas being available to assist the regional winter market gas shortage, PetroMagallanes said.

PetroMagallanes has concessions to explore, exploit, and produce petroleum in four blocks totaling 9,000 sq km in and adjacent to the Straits of Magellan in Chile (see attached map). PetroMagallanes is a 100% owned Chilean operating company of Greymouth Petroleum Holding Ltd., Auckland, NZ.