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 $1.9 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 is hoped this well can be drilled in early 2019 to a depth of 1850 metres to test low-risk sands in the Mancora Formation and higher-risk fractured Basement. Most Likely Prospective Resources for the low-risk Mancora Sand are estimated at 6.4 BCF recoverable. The high-risk fractured Basement is estimated to be capable of containing Most Likely Prospective Resources of 7 million barrels of recoverable oil, although the prospect may contain gas and could be part of a much larger structure.