Spectrum maintains strong LatAm focus as auctions near

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Thursday, April 27, 2017

Oil and gas data provider Spectrum maintains a strong focus on Latin America, identifying Brazil, Mexico and Uruguay as "areas of high interest," according to its Q1 earnings report.

Oslo-based Spectrum is hopeful of procuring contracts from companies awarded blocks in auctions in all three countries this year. Mexico will hold a shallow water auction on June 19 and Brazil, which published its Round 14 exploration areas earlier this month, will also hold an auction in H1.

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Uruguay will launch an offshore round in September, known as Ronda Uruguay III, offers for which are due in April 2018.

During Q1, Spectrum completed phase 2 of the Santos and Campos basins survey in Brazil, the results of which will be available this quarter, and in mid-March completed phase 2 of the Potiguar survey (pictured), results for which will be made available in the fourth quarter. That area is of interest for a projected Round 15 in 2018, the company said.

And this month Spectrum started a deepwater, 35,000km2 long offset broadband data survey in Argentina in partnership with BGP, with results due in Q4.

The company remained in the red during the quarter however, as adverse conditions persist, reporting a loss of US$3.72mn, an improvement on a US$7.9mn loss in 1Q16.

"Sales from [the] existing library continues [sic] to be challenging, but sales leads are increasing," Spectrum said, with new project development progressing well for 2017.

"Spectrum will take advantage of the generous supply side and increase MC [multiclient] investment in 2017 over 2016."