On 11 February 2019, the CNH approved a PEMEX request to modify the exploration work commitments for four entitlements in the onshore Tampico-Misantla Basin, unconventional play.Â  The blocks include the AE-0381-2M-Pitepec, the AE-0382-2M-Amatitlan, the AE-0385-2M-Soledad, and the AE-0386-2M-Miahuapan.Â  The proposed modified exploration plans include the drilling of one firm commitment horizontal unconventional well and one contingent horizontal unconventional well in each block.Â  Also each prospect will have a vertical pilot hole.Â  The approval of the exploration plan is also a requisite for the entitlements to be migrated to exploration and production contracts which has also been ongoing for about two years.Â      For the AE-0381-2M-Pitepec entitlement block the firm commitment well is the Axlatitla 1EXP with targets in the Upper Jurassic Kimmeridgian and Upper Jurassic Tithonian Pimienta Formation.Â  The proposed total depth (PTD) measured depth (MD) is 4,545 m and prospective resources are estimated to be 18 MMboe. Â Â Â The contingent well is the Iscata 1EXP with targets in the Upper Jurassic Tithonian Pimienta Formation and Upper Jurassic Oxfordian Santiago Formation.Â  The proposed total depth (PTD) measured depth (MD) is 4,450 m for the Upper Jurassic Tithonian and 4,900 m for the Upper Jurassic Oxfordian target.Â  The true vertical depth for the pilot hole is 3,750 m and total prospective resources are estimated to be 38 MMboe from the two target zones.Â  The total budget for drilling both wells and G&G is USD 51.1 million.Â  The drilling is scheduled to commence in late 2019 and early 2020.     For the AE-0382-2M-Amatitlan entitlement block the firm commitment well is the Patsay 1EXP with targets in the Upper Jurassic Tithonian and Upper Jurassic Oxfordian.Â  The proposed total depth (PTD) measured depth (MD) is 5,295 m and TVD is 3,915 m with the top of the first target at 2,885 m and the second target at 3,445 m TVD. Â The total prospective resources are estimated to be 48 MMboe for the two target zones. Â Â Â The contingent well is the Solim 1EXP with targets in the Upper Jurassic Tithonian and Upper Jurassic Oxfordian.Â  The proposed total depth (PTD) measured depth (MD) is 4,445 m and 3,795 m TVD.Â  The total prospective resources are estimated to be 46.6 MMboe.Â  The total budget for drilling both wells and G&G is USD 55.1 million.Â  The drilling is scheduled to commence in late 2019 and early 2020.     For the AE-0385-2M-Soledad entitlement block the firm commitment well is the Akchan 1EXP with a target in the Upper Jurassic Kimmeridgian.Â  The proposed total depth (PTD) measured depth (MD) is 5,025 m and TVD is 2,840 m. Â The total prospective resources are estimated to be 13.6 MMboe. Â Â Â The contingent well is the Baku 1EXP with a target in the Upper Jurassic Kimmeridgian.Â  The proposed total depth (PTD) measured depth (MD) is 4,450 m and 2,950 m TVD.Â  The total prospective resources are estimated to be 9.75 MMboe.Â  The total budget for drilling both wells and G&G is USD 28.9 million.Â  The drilling is scheduled to commence in late 2019 and early 2020.     For the AE-0386-2M-Miahuapan entitlement block the firm commitment well is the Spun 1EXP with targets in the Upper Jurassic Tithonian and Upper Jurassic Oxfordian.Â  The proposed total depth (PTD) measured depth (MD) is 4,900 m for the first target and 5,252 m for the second target and TVD for the pilot hole is 3,772 m. Â The total prospective resources are estimated to be 49 MMboe for the two target zones. Â Â Â The contingent well is the Tlaxe 1EXP with targets in the Upper Jurassic Tithonian and Upper Jurassic Oxfordian.Â  The proposed total depth (PTD) measured depth (MD) is 4,530 m for the first target and 4,875 m for the second target and TVD for the pilot hole is 3,662 m.Â  The total prospective resources are estimated to be 45 MMboe.Â  The total budget for drilling both wells and G&G is USD 69.24 million.Â  The drilling is scheduled to commence in late 2019 and early 2020.   On 21 August 2018, the CNH issued a report and opinion to SENER regarding a PEMEX request for a two year extension of five exploration and production entitlements including the AE-0381-2M-Pitepec block, the AE-0382-2M-Amatitlan block, the AE-0385-2M-Soledad block, the AE-0386-2M-Miahuapan block, and the AE-0388-2M-Miquetla block. The entitlements have a first period expiry date of 1 September 2018 after being officially granted on 1 September 2015.Â  The two year extension period would keep the entitlements valid until 1 September 2020. The CNH reviewed the minimum work program (CMT) covering the five blocks that were supposed to be carried out during the course of the first three year exploration period and found that the operator did not comply with the minimum work commitments or investments on any of the blocks.Â  The operator met most commitments for studies and processing seismic but drilled none of the well commitments, which was one well in each block.Â  Â However, PEMEX justified the shortfall of its CMTs to the fact it is focusing exploration efforts on unconventional resources and the regulations for unconventional operations were not officially in force until early 2018. Â PEMEX has been in the process to migrate the legacy Service Contracts, formerly production entitlements or A denominated blocks from Ronda 0, to the new exploration and production model contract (CEE) for several years now, the AE exploration and production entitlements an intermediate step, and they are still pending.Â  Â   On 13 October 2016, the CNH approved a request by PEMEX to modify its exploration commitments for five modified Service Contracts that migrated to Exploration and Production entitlements.Â  In September 2015, SENER granted PEMEX rights to all horizons instead of just the Paleocene and Upper Cretaceous productive zones in the blocks.Â  The rights include all stratigraphic horizons to the Jurassic and also for unconventional exploration and production.Â    On 1 September 2015, the Secretaria de Energia de Mexico (SENER) granted formal approval for the migration of the legacy Service Contracts, formerly production entitlements or A denominated blocks to the Exploration and Production entitlements.
Mexico, AE-0386-2M-Miahuapan