Home' Trinidad and Tobago Guardian : May 23rd 2013 Contents MAY 2013 • WEEK FOUR www.guardian.co.tt BUSINESS GUARDIAN
ENERGY | BG11
Range expects 540,000
barrels from Beach Marcelle
Australia s Range Resources
Ltd, an oil and gas oper-
ator in south Trinidad,
expects to recover
540,000 barrels at Beach
Marcelle by deepening
wells at lower costs, the company said in
a May 16 Trinidad update.
"With respect to the Beach Marcelle
licence, environmental approvals have been
received to proceed with the deepening of
six wells following submission of applica-
tions earlier in the year. The company will
mobilise a production rig to the Beach Mar-
celle contract area to test and prepare exist-
ing well bores in anticipation of deepening
those wells to recover proved undeveloped
reserves. Within the Beach Marcelle field,
successful deepening of existing well bores
is expected to recover up to 90,000 barrels
of oil per well at costs significantly lower
than drilling and completing new wells,"
the company said in its update.
As for the South Quarry licence, the
company said it is "in the final planning
stages of a new development programme
in the South Quarry field following the
recent receipt of approvals for the con-
struction of four initial well pad locations.
Operations will commence with site con-
struction and fabrication of equipment to
support the drilling.
"It is anticipated that drilling in the area
will commence end June/early July. Previous
drilling campaigns have yielded higher-
than-average rates and recoveries due to
increased geopressure in the area. Given
the proximity to established production,
the South Quarry programme has a high
probability of boosting production, while
extending the producing trends and estab-
lishing multiple locations for future drilling."
In the Lower Forest Development, fol-
lowing successful completion of three wells,
initial production rates of 220 barrels of
oil per day (bopd).
As a result of the company s recent
extension of the Morne Diablo Farm Out
agreement, Range is evaluating a possible
reactivation of the QUN 16 well, which
previously produced up to 145 bopd over
a one-week test. The QUN 16 well was
drilled and tested in 1942 and logged thick
oil sands that correlate with the Lower
Forest reservoirs being completed by the
company approximately half mile to the
In addition to the QUN 16 well reacti-
vation, the company is expecting several
production rigs to be placed back into oper-
ation within the week to begin remedial
work on up to 20 existing wells, which are
expected to yield an additional 100-150
bopd of production.
On the Middle Cruse formation, another
field in Range s portfolio, the company
said: "Based on historical production rates
seen from the Middle Cruse formation, a
successful well at this location could poten-
tially have initial production rates of up to
200--300 bopd, which could be further
enhanced with mini-hydraulic fracture
As part of its worldwide exploration and
production programme, Range said it con-
tinues to evaluate exploration, drilling,
completion, and production technology to
maximise recovery of oil and gas from its
producing areas at the lowest cost possi-
As part of its focus on the application
of new technologies, the company is cur-
rently reviewing multiple completion
options available to it in Trinidad, including
the use of mini-hydraulic fracturing, which
has been proven successful in other parts
of the country.
Certain reservoirs within the company s
licence areas may also be candidates for
horizontal drilling and completion, which
can potentially increase initial production
rates by five- to tenfold, the update said.
The company said: "As demonstrated
by their growing use in the exploitation of
both conventional and unconventional oil
and gas accumulations worldwide, signif-
icant economic gains can be achieved where
these technologies can be applied in a cost
Range resources' three production licenses
Parex Resources Inc, a company focused
on oil exploration and production in Colom-
bia and T&T, on May 14 announced a US$11
million net income for the first quarter of
2013 (QI 2013).
This income was lower than for the same
period last year when it was US$27 million,
but higher than the loss from last quarter of
2012 of US$15 million.
"The company's capital expenditures were
US$47.2 million in the first quarter, of which
US$45.6 million was related to Colombia
and the remainder in Trinidad. Capital ex-
penditures were fully funded from funds
flow from operations," the company said in
its first quarter results.
"Parex is conducting exploration activities
on its 1,349,000 gross acre holdings prima-
rily in the Llanos Basin of Colombia and
219,000 gross acre holdings onshore
Trinidad," the company said.
Parex is headquartered in Calgary, Canada.
The company achieved quarterly oil pro-
duction of 14,440 barrels of oil per day
(bopd), mainly from Colombia. This produc-
tion rate represents an increase of 13 per
cent over the fourth quarter of 2012. The
company said it got Brent referenced sales
price of US$109.63 per barrel (bbl) and an
operating netback of US$67.03/bbl.
Parex said it reduced operating and trans-
portation combined unit costs by 4.5 per
cent compared to the previous quarter.
profit in Q1 2013
Mexico imported a record volume of natural
gas in 2012, about 2.1 billion cubic feet per day
(bcf/d), which was up 21 per cent from 2011.
Natural gas flows from United States pipelines
accounted for about 80 per cent of Mexico s
overall natural gas imports in 2012; US natural
gas exports to Mexico in 2012 were almost 1.7
bcf/d, more than 24 per cent higher than in 2011.
Since 2006, imports of liquefied natural gas
(LNG) have made up the remainder of Mexico s
imported natural gas needs. Mexico s LNG
imports averaged about 0.4 bcf/d in 2012, rep-
resenting about 20 per cent of its overall natural
Imports of LNG became a part of Mexico s
gas supply starting in 2006. Mexico imports
most of the LNG from Nigeria, Qatar, and Peru.
LNG imports accounted for 38 per cent of Mex-
ico s total natural gas imports in 2010, or more
than 0.5 bcf/d. LNG s share of Mexico s imports
has declined since then because of growing nat-
ural gas imports via pipelines from the United
States, which have been more economically
attractive given the recent decline in US natural
The future role LNG imports may play in
meeting Mexico s need to provide natural gas
reliability depends mostly on the relative eco-
nomics and constraints of importing natural gas
from the United States by pipeline versus the
price and availability of importing LNG; pro-
duction trends in Mexico; and the development
of additional natural gas infrastructure in Mexico.
Mexico s LNG import capabilities are as follows:
Altamira. Altamira, Mexico s first LNG regasi-
fication facility, has a capacity of 0.6 bcf/d and
began commercial operations in 2006. In its first
year of operation, Altamira imported on average
0.1 bcf/d of LNG from T&T, Qatar, Egypt, and
Energia Costa Azul. Starting in 2008, Sempra
placed into service the Energia Costa Azul LNG
terminal with a capacity of one bcf/d on Mexico s
west coast in Ensenada, Baja California. The
Costa Azul terminal, however, has been underused
because expected shipments of LNG were diverted
to Asian markets with higher prices.
In addition, potential demand for shipments
of regasified LNG from Mexico to the western
US has decreased because expansions of the
Kern River and Ruby pipelines now flow US-
sourced gas into that area.
Manzanillo. The 0.5 bcf/d Manzanillo LNG
regasification terminal was placed into service
Potential new projects. Construction of up to
five LNG regasification projects over the next
several years could add more than four bcf/d of
incremental regasification capacity.
(LNG World News)
EIA: LNG represents 20% of Mexico's 2012 imports
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