A subsidiary of Houston, Texas-based Fieldwood Energy announced that it has signed a production sharing contract to work on an offshore prospect which it won in last September’s auction of Mexican oil and gas fields.
Under the contract Fieldwood Energy E&P Mexico will partner with Petrobal, a newly-formed Mexican company backed by billionaire Alberto Bailleres, to drill in Area 4.
Covering 58 sq miles, Area 4 comprises the Ichalkil and Pokoch fields which are believed to have potential reserves of reserves of 68 million barrels of light oil and 92 billion cubic feet (bcf) of gas. Area 4 is located in the Bay of Campeche at water depths of 100 to 150 feet.
Mexico’s government is in the process of privatizing its oil industry and opening up the bid process after 75 years of domination by state oil firm Pemex.
The September auction with three of five bids filled was a marked improvement on the first one in July which had just 2 of 14 sold. And a December one for onshore fields was even more successful with 22 bidders awarded rights.
Fieldwood will soon begin a roughly two-year appraisal period in Area 4 including a limited drilling program and technical evaluation process.