Brazilian oil newcomer Elysian outlines 5-year investment plan

Brazilian oil firm Elysian plans to invest 400 million reais (US$70mn) in the next five years, founder and CEO Ernani Machado told BNamericas. 

Founded in August last year, Elysian acquired 122 onshore exploration blocks at sector watchdog ANP’s 4th open acreage concession tender only four months later. 

The company recently signed the concession contracts for the assets, which are located in the Potiguar and Espírito Santo basins.

Machado underscored that the minimum investment required in the contracts with ANP is 192mn reais. 

"The 400mn reais is what we believe we’ll have to invest for our exploration and production target," he said. 

According to Machado, part of the funds to be invested will come from his own capital and the rest from investors. "We’re negotiating with various partners, and we already have research centers and universities working with us." 

Initial activities planned are the development of technologies, exploration to find the best production locations and new reserves, and so-called recycling of existing wells.

Recycling means reactivating wells previously drilled by other companies in the areas acquired by Elysian – the open acreage system offers blocks and fields previously auctioned and returned to ANP.  

"We’ve already started simultaneous studies in four blocks. As they are very large areas, we’re researching all of them at the same time," said Machado. "I intend to start producing by 2025 at the latest. We aim to produce at least 5,000b/d."