Pemex Pounces on Hydrocarbons at Tsimin Wildcat in GOM

MEXICO CITY (Dow Jones Newswires), Mar. 3, 2009

Mexican state oil company Petroleos Mexicanos said Tuesday that it discovered significant amounts of natural gas and condensates at wildcat well Tsimin-1 in the Gulf of Mexico.

"We found significant reserves of gas and condensates," Pemex planning director Vinicio Suro said during a conference call.

The well had initial production of 4,400 barrels of oil equivalent per day, according to a company presentation.

Pemex also listed four light crude oil discoveries in its fourth-quarter 2008 financial results. The most prolific of the crude discoveries was the Xanab-DL1 offshore well, with initial production of 9,200 barrels a day.

Mexico is struggling to increase proven oil reserves after decades of heavy exploitation at the giant Cantarell oil field. Pemex CEO Jesus Reyes Heroles recently told lawmakers that Pemex's reserve replacement rate, or the amount of proven reserves it booked compared to production, rose to 50% in 2008 from 41% in 2007.

Pemex plans to lift its reserve-replacement rate to 100% by 2012, thanks to an aggressive investment program in exploration and production.

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