(Alliance News) - Eni Spa and Cairn Energy PLC on Monday announced a new oil discovery in Upper Miocene sequences offshore Mexico.
According to preliminary estimates, the new find, at the Sayulita Exploration Prospect in Block 10 in the mid-deep water of the Cuenca Salina Sureste Basin, may contain between 150,000 and 200,000 barrels of oil equivalent.
The Block 10 joint venture is held by Italy's Eni with a 65% stake as operator, Russia's NK Lukoil PAO with a 20% interest and Cairn Energy with a 15% working interest through its wholly owned subsidiary Capricorn Energy Mexico.
Sayulita-1 EXP, which led to the find, is the seventh successful well drilled by Eni offshore Mexico in the Cuenca Salina Sureste Basin and the second commitment well of Block 10, Rome-based Eni noted.
"Sayulita-1 EXP found 55 meters of net pay of good quality oil in the Upper Miocene sequences. The reservoirs show excellent petrophysical properties. An intensive data collection has been carried out on the well and the data acquired indicate a production capacity for the well of up to approximately 3,000 barrels of oil per day," Eni said.
The successful result confirms the "value of the asset and opens the potential commercial outcome of Block 10", as several other prospects located nearby may be clustered in a synergic development for the joint venture's operations.
Shares in Cairn were trading up 4.6% at 133.60 pence each in London on Monday morning. Eni shares were trading 0.9% higher in Milan at EUR10.11 each.
By Will Paige; willpaige@alliancenews.com
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Capricorn Energy PLC (CNE)