Increasing oil production from the Americas is a positive trend. Especially since oil production in Venezuela has been declined over 1 mmbo, since Chavez fired all the PDVSA work workers in 2002.
Brazil's Ronde 11 continues to be delayed, and Colombia has been experiencing local protests of oil operations. After Brazil and Colombia, what other South American countries are most likely to promote oil production in the next decade?
Argentine shale oil and shale gas exploration is in the very early stages, but oil and gas production in Argentina has been declining due to poor fiscal terms. Argentina has significant oil and gas reserves and production infrastructure.
I like Gran Tierra GTE with operations in Colombia, Brazil, Peru, and South America. GTE is ramping up production in their Ronconda basin block 155. Gran Tierra just farmed into (10% - 15%) in two Brazil deep water blocks BM-CAL-7 and BM-CAL-10 in the Camanu-Almada basin. The Camamu-Almada Basin will also have similar structures with resources from 100 million to 700 million barrels of oil.” Statoil, is the operator and Petrobras is the other JV partner. An exploration well is planned in H2 2010.
Five of Gran Tierra's management and engineers staff worked for Encana when Encana discovered the giant Peregrine and Wahoo oil fields. Gran Tierra has 2 management, GTE Brazil VP, 2 geologist and 1 engineer, that were key players in Encana Brazil when Encana made the Peregrino oil field discovery 300 mmbo - 800 mmbo recoverable (3 billion OIIP) and the Wahoo oil field discovery 300 mmbo discovery, about 800 mmbo OIIP. After some M &A - Statoil now operates the Peregrine oil field, and I'm not sure who has Wahoo. Its clear that GTE has staff responsible for discovering these giant oil fields.
GTE staff is well connected in Brazil. GTE obtained their Recondona basin land blocks from Petrobras. GTE is moving forward with expansion into Brazil, prior to Brasil ronde 11. |
