To date, the Reconcavo basin has produced 1.46 billion barrels of oil (bbl) and has an estimated recoverable reserves of 300 million bbl remaining. Current production in this on-shore basin is 44,000bbl and 137 million cubic feet (mmcf) of gas per day.
The company’s 30% working interest is held by its 100% owned Brazilian subsidiary Eaglestar Petroleo do Brasil; cost of the acquisition is a signature bonus of C$150,000, which has been paid, and requires work commitment of C$667,000 over two years, which has been secured by an insurance bond.
Martin Keeley, COO of Eagle Star, said: We are very pleased with our first international acquisition, and the promise it holds for Eagle Star. The location presents us with good potential at relatively low risk and the opportunity to increase our involvement in other exciting international oil and gas opportunities with the help of our well-established partners.
