The Piedra Sola concession in Uruguay covers over 1.36 million acres (held via a 41% interest in Schuepbach Energy International LLC (“SEI”) a private US company).
With increasing international attention turning to Uruguay after first onshore hydrocarbons discovered in 2017 and successful offshore licensing, the onshore Piedra Sola concession represents a high quality opportunity for Warrego. Schuepbach International Holdings LLC are currently funding and managing this project. Netherland, Sewell and Associates, Inc. (“NSAI”), have independently certified significant prospective resource potential on the acreage.
In October 2012 Warrego (formerly Petrel) acquired an interest in Piedra Sola, a large petroleum project in Uruguay). In the course of renewing the Permit in April 2019, the Operator relinquished part of the original area and Piedra Sola now comprises 1.359m acres in the Norte Basin. Warrego's initial entry was acquired with a US$2.5 million investment for 25% of SEI and an 85% interest in two prospective gas licences in southern Spain held via an interest in Tarba Energia S.R.L. (‘Tarba’). In April 2018 Warrego (then Petrel) reduced its interest in SEI to 41% and increased its interest in Tarba to 97.5%, to increase the company’s interest in the Tesorillo Project in Cadiz, Spain.
Attractions of the Norte Basin
The Norte Basin in Uruguay forms part of the same oil-producing Devonian basin system which extends into the neighbouring Parana Basin in Brazil. It is also productive in Bolivia and Argentina but largely unexplored in Uruguay.
Uruguay is a stable democracy with an excellent working environment, and access to oilfield services and equipment from nearby Argentina and Brazil. Uruguay imports of the order of 40,000 bopd for domestic consumption into the La Teja refinery in Montevideo.
Intensive technical work by Dr Martin Schuepbach of SEI since 2007 indicates the presence of a previously unknown rift basin which is prospective for conventional oil in Devonian age sandstones with the possibility of hybrid plays akin to the Bakken in North America.
Data from shallow coreholes drilled on the basin margin together with evidence from water wells has provided anecdotal evidence of hydrocarbons
A magnetotelluric (MT) survey, completed in early 2013, confirmed the existence of a northwest-trending rift basin with Devonian and potentially Permian sediments. In addition to basin delineation, the MT survey assisted in identification of corehole locations designed to characterise basic reservoir parameters, resource extent and potential resource size.
The 2017 Cerro Padilla-1 well analysis showed two metres of sand with oil saturation at 793m.