Hokchi Energy Targets New Oil Reserves

Hokchi Energy will invest US$60 million in a new exploration campaign offshore Veracruz in the Gulf of Mexico, where it plans to drill two wells targeting an estimated 100 million barrels of crude oil equivalent in proven and probable reserves.

The Argentine consortium, which has operated in Mexico for the past 10 years, said it has contracted Fontis Energy, a drilling company established in Mexico with Norwegian capital and financing, to carry out the campaign focused on prospects identified through seismic data interpretation.

In accordance with Exploration and Production Contract CNH-R03-L01-AS-CS-15/2018, the Oberon jack-up drilling rig is currently positioned offshore Coatzacoalcos, Veracruz, and is preparing to begin drilling its first well, Woolis-1EXP, during the third week of November.

“The investment exceeds US$60 million, reaffirming Hokchi Energy’s commitment to Mexico and its goal of increasing hydrocarbon reserves and contributing to the growth of the country's oil production,” the company stated.

The other prospect to be evaluated is Tojol, although its drilling start date has not yet been announced.

The two exploratory wells will join others already drilled in the area, which led to the confirmation of a new oil field, Xaxamani, with certified 3P reserves of more than 130 million barrels of crude oil equivalent. A development plan for the field is currently being prepared, with the aim of beginning hydrocarbon production in the near future.

One of the wells will undergo a production test using the Deep Transient Testing (DTT) tool. According to Hokchi, the technology eliminates the need for a Floating Production Storage and Offloading (FPSO) vessel because there will be no crude oil or gas production at the wellhead, only sampling from the target formations.

Hokchi is a partnership between Argentine companies Pan American Energy and E&P Hidrocarburos, established to develop an oil field awarded during the previous administration under a Production-Sharing Agreement.

Covering 39.59 square kilometers divided into two blocks, the Contract Area is located in shallow waters off the coast of Tabasco, approximately 27 kilometers northwest of the port of Dos Bocas. Until last year, it reported the second-highest production among private operators, at more than 19,000 barrels of crude oil per day.