Australia-based Petrel Energy has announced plans to begin testing for oil and gas potential at the 3.5 million acre Norte Basin in Uruguay in August.
The drilling programme is to target organic rich shales in the basin to test parameters for source and reservoir rock evaluation of similar age shale plays found in the US Bakken formation.
Petrel Energy and operator Schuepbach Energy International (SEI) submitted the required government and landholder approvals related to the project.
The company also signed an agreement with two local drilling companies to drill the Piedra Sola and Salto wells in the basin to depths of approximately 700m and 1300m within a four to six-week period.
Petrel Energy managing director David Casey said that being the first mover in onshore Uruguay, the company plans to establish best practice procedures from the beginning.
"We are very happy with the progress to date as we have taken the time to proactively work with landowners and government alike," he said.
"This has and continues to be a valuable investment of our time as it lays the foundations for future approvals processes and the beginning of what we believe will be a substantial new period of onshore oil and gas exploration for Uruguay."
SEI is a US-based company with a 100% working interest in Piedra Sola and Salto concessions in the Norte Basin, an area which covers around 14,000km².
Petrel Energy currently owns a 25% interest in SEI and has an option to increase its stake to 51% for $5.5m by the end of the year.
Image: Petrel Energy plans to begin drilling at its 3.5 million acre Norte Basin in August. Photo: courtesy of Ruhrfisch.
