Zama resource increase

Talos and Premier Oil have announced the successful appraisal of Zama in Block 7 offshore Mexico under the Zama-3 well. Premier has indicated a P90-P10 resource range of 670-970mmboe with P50 of 810mmboe. This further reaffirms the resource base and provides an upgrade to the previous 600mmbbl (oil) estimate.

The Zama-3 well follows:

• The initial Zama-1 discovery in 2017
• Zama-2 appraisal in January 2019
• Zama-2ST1 sidetrack well in April 2019

Zama-3 was drilled 2.4km from Zama-1 and logged 228m of gross pay. The net-to-gross was consistent with prior penetrations. The Zama-3 well was completed 9 days ahead of schedule and on budget.

The entire 3 appraisal well programme finished 39 days ahead of schedule and under budget.

The Zama field is planned to be developed from a single drill centre with drilling from the platform. Three production platforms are envisaged, each with capacity of up to 100mbopd. Produced oil is planned to be transported via a pipeline to the Dos Bocas terminal located onshore, c.70km away from the field.

The Zama partners are: Talos (35% operator), DEA (40%) and Premier Oil (25%).

Premier Oil also has a non-operated interest in Block 30 which could see Mexico transform into another important leg of its portfolio.

Read More

Further positive momentum at Zama

The Zama-2ST1 well (side-track well son Zama-2) encountered 873ft of gross oil bearing column with a net-to-gross ratio of c.70%. The well flowed at 7.9mboepd of which 94% was light 26-30 API oil. The well results indicated a prolific reservoir and potential to achieve significant plateau rates at the field. The operator estimates that a peak production of 150-175mboe/d is achievable.

This news is positive for the recoverable reserves of the field and could tighten the current estimates range of 400-800mmboe upwards.

The rig will now move to drill the Zama-3 well, the last in the 2019 campaign, and should confirm the extent of the field to the south. The drilling programme remains ahead of schedule with the Zama-2ST1 completed 9 days ahead of schedule and 16% below budget.

The Zama field is planned to be developed from a single drill centre with drilling from the platform. Three production platforms are envisaged, each with capacity of up to 100mbopd. Produced oil is planned to be transported via a pipeline to the Dos Bocas terminal located onshore, c.70km away from the field.

The Zama partners are: Talos (35% operator), DEA (40%) and Premier Oil (25%).

For Premier Oil, this development could overtake the Sea Lion development in the Falklands (another large resource optionality for the company), adding visibility to additional near-term production growth.

Premier Oil also has a non-operated interest in Block 30 which could see Mexico transform into another important leg of its portfolio.

Block 30 is operated by DEA 40% with partners Premier Oil 30% and Sapura Energy 30%.

See also Premier success at Zama on the Zama-2 result in January 2019.

Premier Oil Camarco RBC Capital Markets

Read More

Premier success at Zama

Premier and operator Talos have announced the successful appraisal of Zama-2 offshore Mexico. This is the second well on the Zama field, following the initial discovery at Zama-1 in 2017, and reaffirms the massive 600mmbbl oil discovery.

The well penetrated 152m of net pay with a high net-to-gross of 73% (vs. Zama-1 of 63%). This suggests potential resource upside and could see resource estimates being upgraded as the appraisal campaign continues.

Zama-2 will now be sidetracked to penetrate the reservoir vertically to aid coring and testing. The upcoming Zama-3 well will appraise the southern portion of the accumulation. With good confidence on the underlying resources, the Zama partners should now be thinking ahead on development plans.

The Zama field is planned to be developed from a single drill centre with drilling from the platform. Three production platforms are envisaged, each with capacity of up to 100mbopd. Produced oil is planned to be transported via a pipeline to the Dos Bocas terminal located onshore, c.70km away from the field.

For Premier Oil, this development could overtake the Sea Lion development in the Falklands (another large resource optionality for the company), adding visibility to additional near-term production growth.

The Zama partners are: Talos (35% operator), Sierra Oil & Gas (40%), Premier Oil (25%).
Sierra Oil & Gas was recently acquired by DEA.

#Premier #Zama #Mexico #Block7 #Talos #Sierra #Wintershall #DEA

Read More