MONTEVIDEO – The initial oil discovery in Uruguay is “modest” but marks “a considerable first step” in exploration efforts, Australia’s Petrel Energy Limited, the largest stockholder in Dallas-based Schuepbach Energy, said on Tuesday.
“Additional assessments are required to understand the whole potential of these excellent initial results,” Petrel CEO David Casey said in a statement. “The importance of being the first group finding oil in this border basin cannot be underestimated.”
Even though “this is a modest discovery – it represents a considerable first step in the redefinition of oil and gas potential from the North Basin” in Uruguay, Casey said.
Schuepbach Energy found hydrocarbons after drilling an exploratory well in the northwestern province of Paysandu.
The drillers found “important samples of oil” and production tests are being completed, Petrel said.
“Cerro Padilla-1 is the first of four conventional exploratory wells to be drilled in Uruguay’s North Basin,” the company said.
“Petrel’s global vision for Uruguay consists of drilling four wells to cover the broadest portion possible in the lease area,” and to study the quality and potential of the find, the company said.