UK player taps exploration well in Paraguay

Molecular Energies has successfully spudded the Tapir X-1 oil and gas exploration well in Paraguay, the UK independent announced on Thursday.

The well will be drilled for around 45 days to depths of around 3,800 metres.

The company’s 3D seismic data from a survey conducted in the 2013/2014 financial year suggests a four-way dip closure with seal and target formations of volcaniclastic sedimentary rocks and sands.

Molecular Energies estimates that the play contains more than 260 million barrels of oil.

The well is located on the Pirity Concession in Chaco, Paraguay, around 40 kilometres from the formerly prolific Palmar Largo oilfield in Formosa Province, Argentina.

Previously Molecular Energies spudded the Lapacho-X well on the same licence but did not find commercial levels of resources.

Announcements of the company’s finds at the new well are expected in February 2024.

In September 2023, Molecular Energies sold off its Argentinian assets.

Paraguay currently imports all its oil.