Wednesday, July 12, 2017

Burgos Shale Play -- Mexico -- Just Across The Texas Border -- RBN Energy -- July 12, 2017

Updates

July 12, 2017: be sure to read the first comment. I will add the Pimienta to the sidebar at the right under "other plays.'
Just one play, the Pimienta, spans 1,000 km and is between 50 and 100 km wide (27,000 sq. miles, 17 million acres). Rock quality is similar to the Eagle Ford, but it has "more than 200 m of gross shale thickness, double the typical Eagle Ford thickness in South Texas," the O&G Journal says.

"The Pimienta can be found in the volatile oil to wet gas windows (0.8-1.2%) and at optimal depths of 2-3.5 km. Porosity has been measured at a reasonably high 7%. Reservoir pressure often is high, reaching 50% over hydrostatic in places. The stress gradient has tested at a moderate 0.9 psi/ft, enabling good 3D fracturing systems during stimulation. Coupled with the vast prospective area, these are intriguing reservoir properties."
Original Post
Active rigs:

$45.747/12/201707/12/201607/12/201507/12/201407/12/2013
Active Rigs572873190186

RBN Energy: can Mexico spur gas production in its Burgos Shale play?
It may take a number of years to pan out, but Mexico is taking steps to accelerate the development of its natural gas-rich Burgos Shale region, which lies just across the Rio Grande from South Texas’s newly resurgent Eagle Ford play.
Today (July 12, 2017), Mexico’s Secretaría de Energía (SENER) is expected to name the winners of a competitive bidding process for the rights to drill for natural gas within 1,500 square miles in the states of Nuevo Leon and Tamaulipas.
If the effort to juice Burgos drilling activity and production proves successful, it could affect how much natural gas Mexico needs to import from the U.S. Today we discuss the prospects for reversing gas production declines south of the border and the challenges that exploration and production companies (E&Ps) face in Mexico’s most promising shale play.

7 comments:

  1. The Oil & Gas Journal did an article recently on Mexican shale, which dealt more with the geology than the factors RBN deals with.

    http://www.ogj.com/articles/print/volume-114/issue-6/exploration-and-development/new-bid-round-accelerates-mexico-s-shale-potential.html

    Here in Mexico, when politilogues talk about Mexico's energy resources, they invaraibly talk only about deep water Gulf of Mexico. There's hardly ever mention of shale. But GOM is small potatoes compared to Mexico's shale potential.

    What surprises one is the vastness of Mexico's shale potential (see link to map below).

    https://s9.postimg.org/4nxuss68f/z1305_UOGRmex01.jpg

    In 2013 (which anyone familiar with shale knows is ancient history with its fast-moving technogical breakthroughs) the EIA conducted a study which found 104 billion boe of risked, technically recoverable resources in Mexico. But with all the recent advancements in shale technology and other factors, the O&G Journal analysis "indicates the oil potential could be greater."

    Just one play, the Pimienta, spans 1,000 km and is between 50 and 100 km wide (27,000 sq. miles, 17 million acres). Rock quality is similar to the Eagle Ford, but it has "more than 200 m of gross shale thickness, double the typical Eagle Ford thickness in South Texas," the O&G Journal says.

    The O&G Journal goes on to elaborate:

    "The Pimienta can be found in the volatile oil to wet gas windows (0.8-1.2%) and at optimal depths of 2-3.5 km. Porosity has been measured at a reasonably high 7%. Reservoir pressure often is high, reaching 50% over hydrostatic in places. The stress gradient has tested at a moderate 0.9 psi/ft, enabling good 3D fracturing systems during stimulation. Coupled with the vast prospective area, these are intriguing reservoir properties."

    ReplyDelete
    Replies
    1. Yes, it is unlikely that unconventional oil / natural gas deposits stopped at the Rio Grande.

      Delete
  2. It looks like it was a successful offering.

    Sun God Resources is a Canadian firm.

    Jaguar Exploration and Production is a Mexican firm.

    Iberoamericana de Hidrocarburos S.A. (Ihsa) is a partnership between the Mexican company Monclova Pirineos Gas, S.A. de C.V. and the Spanish company Cobra Instalaciones y Servicios S.A.

    PJP4 is a Mexican company.

    --- Consorcio mexicano-canadiense arrasa con Ronda 2.2 ---
    http://www.elfinanciero.com.mx/economia/ronda-22.html

    Seven of the ten blocks that were offered found takers:

    Área 1 Burgos Iberoamericana de Hidrocarburos con Servicios PJP4 de México
    Área 2 Burgos Desierta
    Área 3 Burgos Desierta
    Área 4 Burgos Sun God Energía de México con Jaguar
    Área 5 Burgos Sun God Energía de México con Jaguar
    Área 6 Burgos Desierta
    Área 7 Burgos Sun God Energía de México con Jaguar
    Área 8 Burgos Sun God Energía de México con Jaguar
    Área 9 Burgos Sun God Energía de México con Jaguar
    Área 10 Región Sur Sun God Energía de México con Jaguar

    ReplyDelete
    Replies
    1. Thank you. It is amazing how much new oil / natural gas continues to be found.

      Delete
  3. Mexico's first offering of shale acreage in the Burgos Basin far exceeded the federal government's expectations.

    In total, in the morning sale (Round 2.2) and afternoon sale (Round 2.3), there were 13 tracts in the Burgos Basin offered. Of these, 10, or just under 80%, found takers.

    The government said it would have considered a ratio of 30% a successful sale, given the low price of oil and gas.

    http://www.elfinanciero.com.mx/economia/ronda-22.html

    http://www.elfinanciero.com.mx/economia/ronda-23.html

    MAP OF TRACKS OFFERED IN ROUND 2.2
    https://s11.postimg.org/67k1fsa6r/Captura_de_pantalla_1230.png

    MAP OF TRACKS OFFERED IN ROUND 2.3
    https://s23.postimg.org/suu1l3frf/Captura_de_pantalla_1229.png

    ReplyDelete
    Replies
    1. I had a similar thought: thinking it strange that any country would be offering leases now with the price of oil / natural gas so low.

      Delete
  4. And a US company did get in on the Burgos Basin action in the afternoon (Round 2.3) sale. Verdad Exploration is an American company.

    Área 1 Burgos Iberoamericana de Hidrocarburos y Servicios PJP4
    Área 2 Burgos Newpek y Verdad Exploration
    Área 3 Burgos Newpek y Verdad Exploration
    Área 4 Burgos Iberoamericana de Hidrocarburos y Servicios PJP4
    Área 5 Tampico-Misantla Jaguar
    Área 6 Veracruz Shandong Kerui, Sicoval y Nuevas Soluciones Energéticas
    Área 7 Veracruz Jaguar
    Área 8 Veracruz Jaguar
    Área 9 Macuspana Jaguar
    Área 10 Salina del Itsmo Shandong Kerui, Sicoval y Nuevas Soluciones Energéticas
    Área 11 Salina del Itsmo Shandong Kerui, Sicoval y Nuevas Soluciones Energéticas
    Área 12 Salina del Itsmo Carso Oil & Gas
    Área 13 Salina del Itsmo Carso Oil & Gas
    Área 14 Macuspana Jaguar

    ReplyDelete