Sintana Energy is establishing an early position in Uruguay’s developing offshore oil sector, where exploration activity is increasing and major international companies are committing capital to the basin.
The company’s exposure is focused on the OFF-1 and OFF-3 blocks. On OFF-1, Sintana has completed the first season of three-dimensional seismic acquisition. This work is intended to improve the technical understanding of the block and identify potential drilling targets. The results will be important in determining whether the acreage can move towards a future exploration well.
On OFF-3, Sintana is seeking a farm-out partner. Securing a partner would allow the company to share exploration costs and technical risk while retaining an interest in the block.
The location of Sintana’s acreage also strengthens its strategic position. Chevron and QatarEnergy have acquired interests in nearby offshore blocks, while Shell, Eni, APA and YPF are also active across Uruguay’s offshore area.
Interest in Uruguay has increased because of possible geological similarities with offshore Namibia. Both regions were connected before the Atlantic Ocean opened, creating the possibility that comparable petroleum systems may exist on opposite sides of the ocean. Recent discoveries in Namibia have therefore encouraged companies to examine Uruguay’s offshore formations more closely.
Sintana Energy Inc (TSX-V:SEI, OTCQX:SEUSF) is a public oil and natural gas exploration company listed on the Toronto Venture Exchange.
