Peru Block XXI – El Barco
The Company’s previous focus was on its blocks in Peru but the very slow pace of approvals and the economic and technical challenges of deep-water exploration caused it to withdraw from offshore Block Z-34 at the end of 2017. Baron is now continuing work on its onshore Block XXI, in the Sechura Desert of northern Peru.
Baron is involved in discussions to find a new partner who would agree to pay the bulk of the estimated $1.4 million cost of the El Barco well in order to earn a substantial interest in Block XXI. If these discussions come to a successful conclusion it is hoped this well can be drilled in mid-2020 to a depth of 1850 metres to test low-risk sands in the Mancora Formation and higher-risk fractured Basement. Unrisked P50 recoverable Prospective Resources for the low-risk Mancora Sand are estimated at 14 BCF. The high-risk fractured Amotape Basement is estimated to be capable of containing unrisked P50 recoverable Prospective Resources of 8.5 million barrels of recoverable oil, although the prospect may contain gas and could be part of a much larger structure.