| VIEW FROM THE TOP
BLAZING A PRODUCTION TRAIL IN SHALLOW WATERS MATT McCARROLL CEO of Fieldwood Energy
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Q: Fieldwood Energy has increased Block 4 estimated
We already have the capital in place to fund the entire
reserves from 68MMb to 455MMb. How was that achieved?
development.
A: Fieldwood Energy had no involvement in the original estimates but, from the beginning, we believed the figures
Q: How will Fieldwood get to first production in Pokoch
to be low. The revised 455MMb estimate includes only oil,
and Ichalkil?
not gas, and we believe the recoverable reserves to be much
A: Phase 1 of our development plan includes installing
higher, around 650MMb. The estimate is a result of drilling,
platforms: one at Pokoch and the other at Ichalkil. The
completing and testing on only two wells in Pokoch and
jacket will be set before other wells are drilled. Three or four
Ichalkil; there will be more to come. We have both Jurassic
additional wells are likely in Ichalkil and one or two in Pokoch
and Cretaceous reservoirs and we think the field will be
during the first Phase.
huge. The company is on schedule to hit first production in 2020 while maximum production, which CNH estimates at
The company’s plan also involves laying pipeline from our
104Mb/d, should occur in 2026. At the same time, we expect
block to an unused PEMEX platform where we will transfer
gas production to hit 140MMcf/d.
custody of the oil and gas from Fieldwood to PEMEX. The agreement for this transfer of custody point is being finalized
Fieldwood was able to increase the reserve estimates
and is the most efficient way to begin production quickly.
almost sevenfold because the rock properties and reservoir
We are three to four months behind on this pipeline project
characteristics were better quality in the wells we drilled
because the approval of the development plan was delayed.
than those found in the initial PEMEX wells. We moved away
Our major contracts have been tentatively awarded for the
between 4,000ft and 5000ft from PEMEX’s wells and found
first phase but the names of these companies will not be
a thicker reservoir. Second, we did not find a water level
released until the project is finalized.
in the Jurassic or Cretaceous reservoirs, so the extent of the area is larger than first thought. Third, on the Ichalkil
Q: How will Fieldwood guarantee the correct measurement
field, the company found that the Jurassic reservoir extends
of well production?
further east than PEMEX had realized. Fourth, because we
A: Fieldwood will install meters for the measurement at the
were able to conduct extensive production tests for weeks at
transfer of custody point. Metering is a big issue in Mexico
a time, we have determined the most efficient flow rate for
because it was not a common practice before; until recently
these wells. We now know the real deliverability in terms of
there was only one operator. But our company possesses the
production volumes. PEMEX’s drill tests had been only hours
technology to carry out metering simply and with accuracy;
and they did not use an ESP (Electro-Submersible Pump).
it is part of our everyday practice in the US.
While overall reserve size and recoverability is important, the way those reserves are developed is the key. It is the
We will have to agree with PEMEX on the meter readings
recovery amount per well where Fieldwood and the Mexican
at the custody transfer point and PEMEX will then have the
government will profit.
option to transfer or buy the production. We have discussed entering into a contract with Trafigura, which is responsible
Platforms on this site are due this summer and the drilling
for marketing the government’s production.
rigs are scheduled to begin drilling later this year. The large size of these fields means there will be surprises and
Q: From where will Fieldwood control operations on Block 4?
changes, both positive and negative, as they are developed.
A: We have a shore facility in Ciudad del Carmen that we
Despite this, Fieldwood Energy is confident that the US$500
have leased on a long-term basis. Most of the technical
million investment to hit first production and the speed with
work is being done in Houston. We also work closely
which we are progressing makes this field very attractive.
with our partner, PetroBal, and its technical team in
