Schuepbach Energy has signed with ANCAP a couple of contracts for onshore oil exploration and exploitation. One of the contract operates over an area of around 10.000 km2 covering Tacuarembo, Paysandu and Durazno provinces, while the another contract covers an area of around 4.000 km2 in the province of Salto. Schuepbach Energy adds activities to what YPF and ANCAP are planning for that part of Uruguay.

Schuepbach Energy will assume all the risks and costs generated by the oil operations during the phases of exploration and production.

The contract is classified as shared production agreement, and under this format Schuepbach Energy is benefited with part of the available production according to the percentages established by the contract. The term of the contract shall be 30 years, and ANCAP may extend the term up to a maximum of 10 years.

The exploratory period comprises a basic sub-period of 3 years, where Schuepbach Energy will execute the compromised exploratory program. There are two voluntary sub periods that involves the production of two exploratory wells each, and the last request to return to Uruguay at least the 50% of the area.

The work program for the exploratory period involves a 2D seismic study of the areas and some research wells. The total investments of the exploratory program are estimated in around 10 million dollars for all the areas.

Tags: ANCAP, Schuepbach Energy