Frontera Energy Corporation (‘Frontera’ or the ‘Company’) and GeoPark Limited (‘GeoPark’), as part of a consortium (Frontera 50%, GeoPark 50%), have announced that they have been awarded production sharing contracts on two blocks in Ecuador's Intracampos Bid Round (the 'Bid Round') offered by the Ministerio de Energia y Recursos Naturales No Renovable, who will confirm the preliminary results by mid-April 2019.
The Perico and Espejo blocks are prospective, low-risk exploration blocks located in Sucumbíos Province in the north-eastern part of Ecuador, in the Oriente basin, and have a total area of approximately 13 504 ha (33 369 acres), of which Frontera holds 6752 ha net (16 685 acres), see map below.
The blocks were acquired under an initial four-year exploration period, with the option to extend the exploration period by an additional two years. The Company estimates that the total gross investment through the exploration phase, including the minimum work commitments and the additional exploration program offered, will be US$64 million, or US$32 million net to the Company.
Both blocks are covered with 3D seismic and are adjacent to multiple discoveries and producing fields. The Oriente basin is one of the most prolific petroleum systems in Latin America, currently producing more than 500 000 bpd and with access to excellent infrastructure with spare capacity and a well-developed service industry.
Richard Herbert, Chief Executive Officer of Frontera commented: "We are very pleased with the results of the Intracampos Bid Round and the acquisition of these high potential blocks as they were our top choices and are located near existing producing fields and related infrastructure. The award marks Frontera's entry into Ecuador and is the third initiative delivered as part of the Company's strategy to enhance its medium and long-term growth prospects (in addition to our entry into Guyana and the farm-in on VIM-1 in Colombia).
This successful Ecuador bid extends and consolidates Frontera's position in the North Andean region of South America. We are pleased to be partnered with GeoPark, which has significant oil and gas experience and operations throughout South America."
Read the article online at: https://www.oilfieldtechnology.com/exploration/14032019/frontera-awarded-two-exploration-blocks-in-ecuadors-intracampos-bid-round/