17-01-06 Peru ended 2005 with three key discoveries, one in a non-producing basin in the Pacific Ocean and two in the Maranon basin near several large undeveloped heavy oil discoveries.

Sechura basin first
The Sechura basin shelf got its first substantial oil discovery with a well drilled by Petro-Tech Peruana in the south-western extremity of Block Z-2B. The San Pedro 1X well tested at 1,200 bpd of light oil from what is reported to be Palaeozoics, which have not been widely prospective in Peru. The well, off Paita, was projected to a TD of 7,400 ft in 250 ft of water.
Petro-Tech produces 10,000 bpd of oil and 65 mm cfpd of gas from offshore fields in the Talara basin on northern Block Z-2B. The company is a subsidiary of Petro-Tech International, Houston. The Sechura basin has extensive seismic coverage but few wells.

Maranon discoveries
Meanwhile, the Energy and Mines Ministry reported a light oil discovery and a heavy oil find by separate operators in the western Maranon basin of north-central Peru. The discovery, the Situche Central 2X well on Block 64, flowed 2,396 bpd of 34.5 degrees gravity oil at 1,166 psi flowing pressure, on a 3/8-inch choke. TD is 17,738 ft in the Cushabatay formation.
Occidental Petroleum's Peruvian unit operates Block 64 but did not participate in the well test. Talisman Energy and Amerada Hess' Peruvian unit each holds 25 % interest in Block 64, but the two companies participated 50-50 in the well test operation.

Occidental discovered Peru's largest onshore oil field complex in Block 1-AB near the border with Ecuador and began production in 1975. It sold its interest in the block in 2000 as the project neared its economic limit.
The Situche Central discovery is about 125 miles southwest of and separated by Occidental's former Block 1-AB from where the former Barrett Resources, Denver, made three large heavy oil discoveries on Block 67 in the northernmost Maranon basin in 1998.

Barrett Resources was unable to attract a partner with heavy oil development expertise before the company was sold to Williams Cos., Tulsa, in August 2001. Barrett Resources identified 21 large structures on Block 67 and in 1998 made the Dorado, Pirana, and Paiche oil discoveries at three 7,000-ft exploratory wells.
Dorado cut 71 ft of pay with 14-16 degrees gravity oil. Pirana cut 84 ft of oil pay with 12-21 degrees gravity oil. Piache cut 179 ft of total pay, including 122 ft of oil pay, with 12-13 degrees gravity oil and low-Btu gas.

The company estimated combined recoverable volumes at the three discoveries at 90 mm to 313 mm bbl of oil and said an oil price of $ 18/bbl was needed to achieve acceptable development economics.
The ministry also reported a heavy oil discovery on Maranon Block 39 about 9 miles south of the Barrett Resources Pirana find. The Buena Vista 1X well tested at 2,830 bpd of 13.7 degrees gravity oil. Repsol-YPF, Madrid, operates Block 39.