Mexico clears updated Burgos basin development plans

Mexico’s hydrocarbons commission CNH gave the green light to two onshore plans presented by private sector players.

One is an evaluation program of Pantera Exploración y Producción for its Tenoch discovery in the Burgos basin, Tamaulipas state.

The regulator said Pantera still had doubts regarding the volumetrics of the discovery, and so would conduct a series of studies aimed at determining whether additional wells are worth spudding. 

If the results are favorable, the company would spud two new wells: one derived from the Tenoch exploration well that led to the discovery, and a new appraisal well meant to extend the discovery. If they are not positive, the area would likely lack commercial viability.

The company plans to invest at least US$3mn at the site by the end of 2023 and could invest up to US$12.6mn if it drills the two wells.

During an extraordinary session on Thursday, the commission also cleared a new 2022 work program presented by Servicios Múltiples de Burgos (SMB) for its M3-MISIÓN contract in the Burgos basin, straddling Nuevo León and Tamaulipas states.

According to the program, SBM expects to extract 32.3Bf3 (billion cubic feet) of natural gas and 100,000b of condensate at the site by investing US$53.3mn. The program involves spudding and completing six production wells, CNH said. Production for the year will be 22% higher than previously estimated in the area’s development plan, according to the company.

During the same session, CNH also approved a series of smaller requests by private players and energy ministry Sener to modify certain aspects related to a contract and a concession.