Condor Energy confirms 3 billion-barrel oil potential at Peru’s offshore Tumbes Basin
Condor Energy (ASX: CND) has confirmed a multi-billion-barrel prospective oil resource across five prospects at its Tumbes Basin technical evaluation area (TEA) LXXXVI in offshore northern Peru.
The Tumbes Basin is a proven hydrocarbon province with existing oil and gas discoveries and production.
The independent assessment by international resource consultancy Netherland Sewell & Associates Inc determined a total best estimate (2U) of 3 billion barrels of oil (100% gross unrisked) at the Bonito, Raya, Salmon, Caballa and Tiburon prospects.
Peak oil maturity
Bonito – the largest of the five – has a best estimate (2U) of 1 billion barrels of oil (100% gross unrisked), with the majority of the resource contained within the Lower Miocene Zorritos Formation.
Bonito sits above mature source rocks that are at peak oil maturity, with migration pathways facilitated by faulting.
This offers Condor an opportunity to test multiple target levels in an optimum location.
World-class potential
Managing director Serge Hayon said the resource assessment validated the company’s belief in the world-class potential of the Tumbes Basin acreage.
“The combination of multiple, giant, stacked oil exploration prospects combined with the undeveloped Piedra Redonda gas field at Tumbes provides massive upside for oil exploration and gas development,” he said.
“The delineation of this prospective resource within our TEA marks a major step forward in our exploration efforts and we are now focused on progressing our farmout process to secure a partner for exploration drilling at the earliest opportunity to unlock the full value of this exciting asset.”
Deepwater extension
Condor’s TEA covers a deepwater extension of the Tumbes petroleum system, the majority of which remains undrilled, offering large structural closures with significant volume potential.
The TEA covers almost all of the basin and exists in shallow-to-moderate water depths of up to 1,500 metres.
The block is surrounded by multiple historic and currently producing oil and gas fields including the shallow-water Piedra Redonda gas discovery, which has a best estimate contingent resource of 1 trillion cubic feet (100% gross) with near-term monetisation options.
Condor owns 80% equity of the TEA and its joint venture partner Jaguar Exploration holds the remaining 20%.