TARGETING CONVENTIONAL SANDSTONE GAS RESERVOIRS IN SOUTHERN SPAIN
Warrego (ASX:WGO) currently holds an 85% interest in Tesorillo via it's shareholding in Tarba Energia S.L. which owns the Tesorillo Project in Cadiz Province in Southern Spain.
Warrego (ASX:WGO) acquired its Spanish assets through the acquisition of Petrel Energy in 2019. All Spanish assets are held in Tarba Energia S.L.
AIM listed Prospex Energy Plc (“Prospex”) currently holds a 15% interest in Tesorillo via its shareholding in Tarba Energia S.L. and has the right to acquire up to a 49.9% interest under a Share Purchase Agreement (“SPA”) entered into in December 2017.
SPA proceeds of €2m will be used by Warrego (ASX:WGO) to fund its share of an agreed Tesorillo work programme (estimated at €3.8m) which includes a magnetotelluric programme and if successful, a well to target the Almarchal-1 discovery drilled in 1956.
Tesorillo, which contains a known gas discovery, could hold gross unrisked Prospective Resources of 830 billion cubic feet of gas (Best Estimate), with upside in excess of 2Tcf, according to a Competent Person’s Report undertaken by Netherland Sewell and Associates (“NSAI”) in 2015.
Tesorillo comprises two petroleum exploration licences, the Tesorillo and Ruedalabola Permits, which cover 38,000ha in total. Both permits enjoy excellent access to infrastructure. The North African Maghreb - Europe gas pipe line makes landfall within, and travels through, the permit, providing easy access to high value Spanish and Portuguese gas markets.
Tesorillo contains the Almarchal-1 discovery well drilled in 1956 by Spanish operator Valdebro. The well intersected a thick section of possible gas pay, including some zones which flowed gas to surface on testing, It is located on a gravity and seismically delineated structure, with closure area exceeding 70km2 and multi-Tcf potential. Drill Stem Tests and log analysis confirm 48m of gas pay from two Miocene Aljibe Formation sandstone intervals, with a further 492m of potential gas pay interpreted from logs yet unconfirmed by testing.
In 2018/2019, Tarba Energia S.L. executed a work programme aiming to integrate various data sources pertaining to Tesorillo. These activities comprised:
- Field geological mapping;
- Magnetotelluric data acquisition
- Reprocessing of all existing 2D seismic lines
As data integration is key to further unlocking the potential of Tesorillo, ongoing integration of the above results will help define an optimal well location.