Spanish oil major Repsol announced Thursday that one of its exploration wells has made a new gas discovery of up to two trillion cubic feet in block 57 in Peru.
The well, called Sagari, was successful in two different formations: the Nia Superior and the Nia Inferior.
Preliminary estimates indicate that the field may hold between one and two trillion cubic feet of gas resources. Repsol said this reinforces the potential of block 57, which is home to the firm's Kinteroni discovery – one of the five largest discoveries made worldwide in 2008 and currently under accelerated development with first gas expected by the end of this year.
In a statement, Repsol said that production tests conducted at Sagari at depths of between 8,830 and 9,230 feet in both formations produced a combined gas flow of 50 million cubic feet of gas per day along with 2,000 barrels of condensate per day. This is the equivalent of approximately 11,000 boepd.
Repsol said that it plans to carry out further exploration in the block once production tests have been completed.
Repsol is the operator of block 57, with a 53.84-percent stake.
Repsol has been stepping up exploration activities as part of its strategic plan for 2012 to 2016 that it outlined in May this year. Back then, the firm said that after years of significant investment in its downstream division it would now use that unit to generate cash flows that would allow it to invest around $3.6 billion per year in upstream activities such as field development and exploration.
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