Overview
In 2007 Chilean Ministry of Mines and
Energy tendered a bid for 36.000 km2 of prospective territory within
the Magallanes Basin in the southern part of Chile. This tender included
10 exploration blocks in which state owned ENAP (Empresia Nacional del
Petroleo-Chile) has variable rights to continue its production depending
on its level of interest. Considerable interest existed in this bid
because of the oil and gas production history by super Majors BP (Pan
American Energy), Total and US independent Apache, on the Argentina
side of the basin.
Manas together with partner IPR (Independent
Petroleum Resources, a Texas based independent) won the bid for the
Tranquillo block which was evaluated as the most prospective block on
offer. BP's Pan American won the block directly east,
Total won the adjacent southern block and Apache won two blocks to the
South East.
The most significant points regarding
Manas Petroleum's Tranquilo block are as follows:
- The Tranquillo block is in
a thrust belt environment and has a considerable number of target structures
of both shallow and moderate depth, with potential for significant GIIP
figures; including the possibility of finding giants fields.
- Tranquilo has a proven petroleum
system
- Some fields can be identified
in them and early production can be easily achieved.
- Although the main potential
is gas, based on discoveries on the Argentina side of the basin, there
is a serious chance of liquids production.
- Vast exploration potential
which can be conveniently staged in three exploration periods.
Location
The block's southern boundary begins in the North coast of Skyring Sound and it has 1,428 Km of 2D seismic and 33 wells. The Magallanes basin has a well-developed 417 Km network of gas pipelines connecting the main fields to market, such us Methanex, the world largest methanol plant. The Tranquilo block is in the foreland of the Magallanes basin which is part of the same geological formation as Argentinas Austral Basin.
Partner
Manas has built a bidding consortium with IPR (Independent Petroleum Resources, www.iprgoc.com ) on a 50% / 50% basis. IPR was the designated operator of the project. Manas and IPR won the tender and the consortium was awarded the Tranquilo block on November 15th.
Manas and IPR succeeded in farming out the project to the new operator Geopark Holding and Pluspetrol. Now, Manas is holding 20% carried interest in the project.
Manas has opened a Chilean company and is an active and constructive partner within the consortium.
Work Commitment
The contract with the government of Chile
is finalized during Mai 2008 and comprises of three exploration periods
of 3, 2 and 2 years, respectively. The production period is 25 years.
IPR is the designated operator of the block.
Exploration work commitments
First Exploratory Period:
- 370 Km 2D Seismic
- 160Km2 3D Seismic
- 6 Exploration Wells of 600,
600, 800, 1000, 1700 and 2300 m.
Second Exploratory Period:
- 140 Km 2D Seismic
- 220 Km2 3D Seismic
- 4 Exploration Wells of 600,
700, 2000 and 2200 m.
Third Exploratory Period:
- 150 Km 2D Seismic
- 150 Km2 3D Seismic
- 3 Exploration Wells of 600,
2000 and 2500 m.
Total Investment: USD 33,240,000
