Eromanga strikes it lucky in...

Eromanga strikes it lucky in Brazil

http://www.upstreamonline.com/live/article154773.ece


Brazil-focused explorer Eromanga Hydrocarbons has unveiled more oil shows in the Sergipe Algoas basin in a fractured basement play which it shares with the country’s largest onshore producer, the nearby Carmopolis field.

The 1-Nord-1-South-East probe in Block 430 reached a total depth of 1327 metres today after hitting 149 metres of gross oil pay.

Out of three targets, two have come in much better than the prognosis, said Eromanga.

The outfit hit 38 metres gross oil pay in the carbonate structure between 1130 metres and 1168 metres, below that a 111 metres gross oil pay was uncovered in the fractured basement.

The fractured basement play is particularly exciting as it has been producing in Brazil’s largest onshore field, Carmopolis, which lies next door since the 1960’s, Eromanga’s chief executive, Phil Galloway, told Upstreamonline today.

“The Carmopolis has well over 1 billion barrels of oil in place and has been producing 25,000 barrels per day for about 45 years,” he said.

Galloway added that the fractured basement show is very material for a company of Eromanga’s size, with a market capitalisation around A$20 million (US$18.6 million).

The well is the second of a two-well programme that the Australian-based outfit is drilling on the Sergipe Algoas basin with local partner Gavae.

Private Brazilian outfit UBX holds a 60% stake in the Gavae joint venture, which operates projects in blocks 330 and 430, while Eromanga holds the remaining 40%.

The Australian junior won six blocks released in Brazil’s seventh round in 2005 and two blocks in the ninth release last year. The blocks were all mature basin plays that Petrobas had decided not to develop.

Eromanga aims to pick up parcels passed over by Petrobas to build a portfolio of oil and gas interests onshore in Brazil with the help of UBX – whose team includes a number of former Petrobas technical staff.