RE:RE:Eastern VenezuelaStiffupperlip, Well when you check out the bios of the board and management, some of these are ex-PDVSA upper management who went on to form companies like Pacific Rubiales etc, decades long involvement in the Canadian oil&gas community with a solid reputation.
If memory serves, the big producing formation in eastern Venezuela is the Caracas formation but let me confirm that. When we drilled it 20 years ago one well was still putting out 8000 bbl/day using downhole pumps. Secondary production. But let's be conservative and say that one well can output 4,000 bbl/day conventional higher than heavy oil API gravity, ie much liighter than Orinoco heavy crude. But again, let me confirm that.
The main oil processing complex called Jose in Barcelona, Venezuela on the Caribbean coast is about 150 km away from Maturin with extensive pipeline infrastructure already installed from those fields. I have to check out what their business plan is. Will they drill new wells or workover existing wells or both?
The good thing is that the oil has already been found and the supporting infrastructure is already in place. I imagine that the netbacks would be impressive. But let me find out what I can. I live nearby and know some people who I can ask. The other thing is that if we're talking workover rigs as opposed to drilling rigs then the workover rigs are much less expensive and quicker to mobilize. So they could start generating revenues very quickly.