Oxy Makes Light Crude Discovery in Block 64

US oil company Occidental Petroleum has discovered light crude oil at its Situche Central 2X exploratory well on block 64 of Peru's Loreto department in the northern jungle region, Peru's mines and energy ministry said in a statement.

The crude of 34 degrees API grade was discovered at a depth of 17,738 feet, making the Situche Central 2X well the deepest in the country.

The estimated production rate for the well is 2,400 barrels a day, the statement said.

"We are going to continue with the testing of the formations and then make a decision about where we go from there in terms of if there's additional delineation drilling to further evaluate the size of the potential reserves, so there's a lot of work to be done yet before we know anything for sure," an Oxy spokesperson told BNamericas.

Oxy is the operator of the block holding 50%, while fellow US oil company Amerada-Hess and Canadian oil company Talisman Energy are also participating as partners, each owning a 25% share.

The three companies have invested US$50mn in the well, where drilling started in January this year, the statement said.

Oxy drilled a wildcat well on block 64 last year that came up dry.

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