International Frontier Resources Corporation (IFR), a Canadian company specialized in oil and gas projects, announced today that its Mexican joint venture, Tonalli Energia was granted the right to operate, develop and produce hydrocarbons at its onshore oil and gas block Tecolutla.
The Tecolutla block was awarded to Tonalli through a licensing contract with the Mexican government as part of the first round and third call of Mexico’s oil and natural gas “mature fields” bid round (“Round 1.3”), the first in almost 80 years
The producing carbonate oil reservoir in the Tecolutla block is the El Abra formation at a depth of 2,340 meters. To date, 1.9 million barrels of oil have been recovered from four previously producing wells at Tecolutla. The wells at Tecolutla were drilled by PEMEX between 1956 and 1972 and had initial production rates up to 473 barrels per day.
Tonalli has secured the drilling authorization permit from Mexico’s National Hydrocarbons Commission for its TEC-10 directional development well. TEC-10 will be the first Tecolutla well to target new locations within the reservoir with the advantage of 3D seismic that was recently completed by the previous operator and has now been reprocessed by Tonalli.
“Based on our interpretation of the 3D seismic, we believe the Tecolutla field has been significantly underdeveloped,” said the company in a statement.
Tonalli intends to initiate its new Tecolutla development program utilizing modern drilling and completion techniques to increase productivity and recovery from the reservoir.
“Offsetting field data obtained by Tonalli in Round 2.3 indicated reservoir properties and well productive capabilities of the El Abra that increased our confidence in the economic viability of the Tecolutla block,” IFR added.
IFR was one of the first foreign companies to participate in the historic reform of Mexico’s oil and gas sector. Last year, IFR assumed operatorship of the Tecolutla block from state-owned PEMEX. Tecolutla was acquired through a 50-50 joint venture with Mexican petrochemical leader Grupo IDESA.