March Resources Receives Independent Report from D&M on Chilean Project
March Resources previously announced the award from the Ministry of Mining and Energy of Chile approval to have exclusive oil and gas exploration and development rights to two blocks in Northern Chile in the Tamarugal Basin. The Pica North and Pica South blocks in this basin consist of a total of 10,000 square kms (2,500,000 acres). The definitive Special Operations Contracts ("SPOC") for each of these areas are currently being negotiated. The SPOC outlines the exploration and development rights on the blocks, which are valid for a period of 35 years and will detail the work commitments that are required for each of the two blocks. March has received an independent assessment of the potential resource on the Pica North Block Gas Accumulation. The Pica North Block will have the initial exploratory wells.
Resource and Prospect Report
A report was prepared by DeGolyer and MacNaughton Canada Limited (D&M), effective June 30, 2006, estimating the prospective resources of first proposed drilling location in the 100% owned Pica North Block. The report estimated gross gas resources on the initial prospect on the North block generating a range of estimated-unrisked gross prospective gas resources from 86 BCF to 1.5 TCF, with the best estimate of 655 BCF of recoverable gas. The report further estimated a geologic risk adjusted gross prospective gas resource of 94 BCF of gas for the initial well alone. The D&M Pica North report has been prepared in accordance with National Instrument 51-101 as it pertains to the evaluation of prospects and resource. The company filed the D&M Pica North report on SEDAR and encourages readers to review the report in its entirety for additional information. The report is subject to a number of qualifications and assumptions, and discloses no reserves of any nature.
The report estimates that the gas resource on the primary structure, on the North Pica Block, as presently mapped with the current geophysical control, is approximately 16 miles long and 4 miles wide, with a vertical closure of 2,500 feet. Two objective sandstone horizons, one at an estimated depth of 4,300 feet and one at an estimated top of 7,000 feet, are anticipated as a result of detailed surface stratigraphic studies. Porosities in the range of 12-19% and permeabilities up to 5 MD have been measured in the surface outcrops. As a result of high-angle reverse faulting, a repeat of the deeper sandstone could be encountered at an estimated depth of 8,470 feet. Additional sandstone reservoirs are anticipated to a depth of 12,800 feet. All of the Jurassic black marine shales, which are at this locality, are in excess of a measured 16,000 feet, and estimated to have been in the hydrocarbon generating window since the end of Jurassic time.
March has begun the field work necessary to comply with all environmental regulations of the Chilean government in order to be ready to begin the drilling program in the fourth quarter of 2006. March has contracted Sustentable SA, who is situated in Santiago, Chile, to provide the Environmental Impact Declaration of the Pica North Gas and Oil Prospecting Project which is required prior to the commencement of the drilling project.
March has contracted New Tech Engineering to assist in all engineering and logistical matters associated with the drilling of the first three exploratory wells. New Tech Engineering is based in the United States but has provided engineering and project management services for large scale exploration projects world wide.
- March Reports Pica #2 P&A, Moves Forward with Challacolla #1 (May 27)
- Sweet Sixteen: March Perforates 16 Intervals, Evals to Come (Apr 30)
- March Spuds Pica 2 Well (Apr 14)