Venezuela: Petrodelta


 

Venezuela is the largest province of proved oil reserves in the Western Hemisphere, with 297.6 billion barrels of proved oil reserves at year-end 2011 (the most recent year for which data is available). Petrodelta, our 32% equity affiliate in Venezuela, controls approximately 247,113 gross acres in concessions covering six oil fields. Nearly 90% of the acreage is undeveloped, providing us with significant multi-year development upside from these prolific fields with multiple stacked pay zones.  

 

Petrodelta's production for 2013 is projected to average approximately 41,300 barrels of oil per day.  Capex for 2013 is projected at $210 million gross for drilling 25 oil wells plus associated infrastructure.  

 

Petrodelta has been executing a long-term evaluation and appraisal drilling program in the six fields it operates, focusing on the three new fields awarded to the company. There are five rigs currently operating with a sixth being prepared for operation. The current gross oil production rate is over 41,000 barrels of oil per day (September, 2013). 

 

The nature of the high quality assets in Venezuela supports rapid conversion of unproved resource into proved reserves. At year-end 2012, combined proved and probable (2P) reserves net to Harvest from Petrodelta were 100.2 million barrels of oil equivalent (MMBOE), and combined proved, probable and possible (3P) reserves net to Harvest from Petrodelta were 204.6 MMBOE. Petrodelta's capital program remains 100% self-funded.