Petrel raises funds for Uruguay drilling campaign

Australian oil and gas company Petrel completed an Aus$710,000 (US$503,083) share placement to raise funds for exploration activity in Uruguay.

Proceeds will go toward finalizing permitting of a four-well drilling campaign in 2016-17 at the Piedra Sola and Salto blocks, the junior said in a statement.

The announcement follows a meeting between Uruguayan President Tabaré Vázquez and four ex-presidents of the country to discuss creating a regulatory framework for the production of hydrocarbons and derivative products.

The meeting comes amid mounting evidence that Uruguay will begin producing oil and gas, both onshore and offshore, in the coming years.

In the last three months, oil majors ExxonMobil and Statoil have both acquired stakes in exploration block 14 off the Uruguayan coast, where operator Total plans to begin exploratory drilling this quarter.

Total acquired the block in a 2012 bidding round administered by state oil refiner Ancap.

Onshore, Petrel has cited the attractive economics of Piedra Sola and Salto despite current low oil prices.

Vázquez and his predecessors will meet again for a more in-depth discussion in March, a government statement said.

***

UPCOMING BNAMERICAS EVENTS

4TH Mexico Electric Power Summit

Click here to see the agenda and speakers

5TH Mexico Infrastructure Summit

Click here to see the agenda and speakers

4TH Mexico Oil & Gas Summit

Click here to see the agenda and speakers