Eni Raises Reserves in Amoca Field Offshore Mexico to 1 Billion Boe
NGI’S MEXICO GAS PRICE INDEX
July 20, 2017
Italy’s Eni SpA has raised the resource estimate of its Amoca field offshore Mexico in Campeche Bay after drilling and testing its first well, which indicated “significant oil levels” in the Orca and Cinco Presidentes formations.
The Amoca-3 well is west of Ciudad Del Carmen in shallow waters, only about 25 meters in depth. Eni in 2015 was awarded the Amoca, Mizton and Tecoalli offshore blocks in Mexico’s second Gulf of Mexico auction.
With the results of the Amoca-3 well, Eni has boosted the resource estimate of the Amoca field to 1 billion boe in place, with the total estimated resource base of its Area 1 development raised to 1.3 billion boe in place, 90% oil-weighted.
The exploration and appraisal campaign to date in Mexico “demonstrates the validity of our design to cost exploration approach,” said CEO Claudio Descalzi. “The Amoca field, which is located at a water depth of only 25 meters, represents an optimal opportunity for a phased development approach with a low breakeven. It is an ideal project in this low oil price environment.
“Eni’s objective is to become the first international company to establish operating production in Mexico, which would be the first tangible success of the country’s important ‘Reforma energetica’ campaign,” he said.
Houston-based Talos Energy LLC and its partners also on Wednesday claimed success with their Zama-1 exploration well offshore Mexico.
Eni’s Amoca-3 well was drilled at a total depth of 4,330 meters and encountered 410 meters of net oil pay with 25-27 degrees API gravity. The well encountered several Pliocene reservoir sandstones, including “in the deeper sequence of Cinco Presidentes, in various cluster levels of Pliocenic age with good reservoir characteristics.”
During the production test, 45 meters of the Cinco Presidentes reservoir were opened to production and the well flowed 6,000 b/d.
The well, suspended temporarily, is to be produced “at a later stage,” Eni management said. The producer now is planning an initial appraisal of the Mizton discovery, followed by other wells to appraise existing discoveries and new undrilled pools.
With the Amoca-3 results, Eni plans to submit an “accelerated and phased development plan,” targeting an early production phase and a plateau of 30,000-50,000 b/d. Operations are expected to start up in early 2019.
Eni holds a 100% stake in the Area 1 production sharing agreement. Following the results of the first international bid of Round 2, Eni was awarded three blocks in the shallow waters of the Sureste Basin (Block 7, 10 and 14), all as the operator. Eni, which has worked in Mexico since 2006, in 2015 established subsidiary Eni Mexico S. de RL de CV.