Petrolifera has executed a three-year contract with Trayectoria Oil and Gas for the sale of up to 8mmcf/d of natural gas, to be sold as compressed natural gas (CNG).
Production and sales are anticipated to commence at a level of approximately 3mmcf/d, rising to 5mmcf/d several months later, and the gas sales volumes could be increased to 8mmcf/d sometime thereafter.
The negotiated well head price for the natural gas under this early production system is set at an initial price of $2 per MMBTU and will be adjusted annually based on changes in the US Consumer Price Index.
Following the successful completion of operation at Brillante SE, it is anticipated it would then be possible to begin crude oil and natural gas production from the La Pinta 1X well, also located on the Sierra Nevada License, the company said.
