Faulkner Exploration Inc. expects to spud in September the first of a 10-well drilling program on 175,000-acre Bayovar Block XXVII onshore in the Sechura basin in Peru.
Drift Lake Resources Inc. said its South American unit Sintana Energy Inc. has a 25% interest in the block. The first well, San Cayetano-1, is to go to 4,500 ft to evaluate the Verdun and Paleozoic reservoirs.
Drift Lake said the Paleozoic is considered the main objective on the block due to its potential to be oil productive as seen in San Pedro field to the north. It is characterized by low matrix porosity but can be highly fractured in the presence of faulting and, in the case of Bayovar, a major uplift event. There have only been minor Paleozoic penetrations on the block, but offset fields show 300-500 ft thicknesses.
The Paleozoic is a prolific producer in the fields offshore north of the block including San Francisco, San Pedro, and Experanza.
The Verdun formation is interpreted to be a delta front deposit within a deltaic system. It has 13-20% porosities, medium to good permeabilities, and 30-50 ft of net pay. The Verdun is a prolific producer in the offshore fields north of the block including La Casita, San Pedro, and Experanza.
If successful, near-term production from the San Cayetano well can be realized due to the proximity of the well to a major oil pipeline, which terminates at a regional refinery, and a local gas market, Drift Lake said.