ChicontepecChicontepec seems to represent a very big opportunity for Wavefront considering that Pemex is investing big money to try to solve problems encountered in this field. Another interesting point from the article below is that the government is putting pressure on Pemex to fix problems in Chicontepec. I think that what the market is waiting for at this time is the installation of the Powerwave tools now that the intent is known. Hopefully Pemex particular circumstances will motivate them to get the tools in the ground sooner and later.
Last interesting point I found in this article is the fact that Chicontepec contains heavy oil between 14 to 24 API according to the author. In its latest article about Wavefront published last week, you can read the following: "It has been applied to previously fractured systems; and demonstrated in viscosity ranges from 8°API to over 40°API." So it seems that Powerwave has the potential to overcome the challenges of Chicontepec.
https://www.financialsense.com/editorials/powers/2009/1202.html
The world's oil problem
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Far and away the biggest hope for PEMEX to replace Cantarell production and keep overall production stable is the company’s Chicontepec field. Chicontepec is an onshore field that was discovered in the 1920’s and was previously not developed due to its challenges and costs. Chicontepec is a massive field with small pockets of oil spread throughout that will require a huge number of wells to be fully developed. Despite high hopes and a lot of rhetoric, Chicontepec has been a miserable failure so far.
With an estimated 139 billion barrels of original oil in place according to a February 2009 report (Source: reservoir engineering firm De Goyler & McNaughton), Chicontepec holds massive potential for PEMEX. However, the field is technically challenging due to its heavy gravity oil (the field contains oil between 14 to 24 API) and poorer quality reservoir rock compared to other fields in Mexico. After spending $3.5 billion so far on the development of Chicontepec, the field is only producing 31,000 bopd, far below the 70,000 expected by year-end. Progress has been so poor that the recently established National Hydrocarbons Commission, which was set up to oversee Mexico’s oil and gas exploration and development, openly challenged PEMEX’s decision to proceed with Chicontepec’s development in a Congressional hearing. Despite cost over-runs and poor production results so far, PEMEX will continue with development since it believes the field is too important to discontinue its efforts.
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GLTA