Wintershall Dea Allocates Major Investment to Kan-1EXP Discovery

Wintershall Dea has received regulatory approval from CNH to proceed with a substantial investment in the Kan-1EXP discovery. This approval paves the way for an estimated investment ranging between US$131 million and US$237 million until 2025.

The Kan-1EXP discovery, situated off the coast of Tabasco, marks a significant milestone for Wintershall Dea. Covering an approximate area of 527.89km2 in the Cuencas del Sureste petroleum province, the discovery holds immense potential in shallow waters. CNH's governing body approved the evaluation program and the initial work and budget plan for the years 2023 and 2024. The contract operates under a shared production model and targets the evaluation and delineation of the discovered reservoir through the drilling of the Kan-1EXP Well for the Upper Miocene.

The program encompasses various activities, including 3D seismic reprocessing, geological studies, drilling of up to two delineation wells (Kan-2DEL), reservoir engineering, and other engineering tasks. Additionally, an incremental scenario includes drilling activities for the Kan-3DEL well.

The Kan well, drilled by the Borr Drilling's Ran platform, reached a total depth of 3,317m and encountered over 170m of net Upper Miocene sands with good petrophysical properties and high-quality oil. Wintershall Dea also explains that an upward lateral drilling was conducted up to 3,087m, and approximately 250m of cores were recovered in the main reservoir sands.

The budget allocation for the evaluation program stands at US$131.77 million in the base scenario and may reach US$237.39 million under the incremental scenario. A significant portion, approximately 85.5%, will be dedicated to drilling operations.

"This significant discovery in the first exploration well operated by Wintershall Dea in the Gulf of Mexico is a great success. It was one of the most contested blocks in Mexico's 3.1 bidding round back in 2018,” said Hugo Dijkgraaf, Chief Technology Officer and Executive Board Member, Wintershall Dea.

Martin Jungbluth, Managing Director, Wintershall Dea in Mexico, highlighted the discovery's importance, noting its contribution to the company's expansion plans and commitment to the Mexican energy sector. "After the recent submission of the unit development plan for the Zama field and the acquisition of a material share in the producing Hokchi field, the discovery in Block 30 is the next significant milestone for Wintershall Dea in Mexico," he said. 

In a previous interview with MBN, Jungbluth said that as part of the company’s Block 30 campaign, it will then drill another well named Ix. In addition, the company will drill more wells during 2024 in Block 4 in the Sureste basin, with Petronas as operator, and also in Block 2 in the Tampico-Misantla region, with PEMEX as operator.

Furthermore, Jungbluth reiterated Wintershall Dea's steadfast commitment to Mexico, citing it as a core country in the company's global portfolio. Despite global geopolitical challenges, Wintershall Dea remains dedicated to diversifying its operations and contributing to the sustainable development of the Mexican energy landscape.