- Jaguar has become the first private operator to receive authorization from the CNH to operate via a “virtual pipeline” in Mexico.
- As such, Jaguar will be able to directly compress natural gas from the wellhead and then market it through tank trucks, promoting access to new sources of affordable and cleaner energy in remote locations.
Mexico City, Mexico, July 5th, 2021 – Jaguar, the private hydrocarbons exploration and production company, marked a significant milestone in the Mexican oil and gas sector by becoming the first private operator to receive authorization to operate through a “virtual pipeline” in Mexico.
The National Hydrocarbons Commission (CNH) authorized this initiative on June 14th, 2021, located in block A7.BG in the Burgos basin and which will have an initial capacity, during the pilot test stage, of 0.5 – 1 MMSCFD. This breakthrough will allow Jaguar to become the first private company in Mexico to be able to directly compress natural gas from the wellhead and commercialize it through tank trucks, without the need for a physical gas pipeline.
“At Jaguar, two of our guiding values are efficiency and transformation. Through the use of this new virtual pipeline, we will be able to produce and transport natural gas efficiently, to continue promoting the creation of innovative solutions that positively impact our environment, the economy, society and human development,” said Warren Levy, CEO of Jaguar.
In the future, thanks to the implementation of this technique by Jaguar, certain remote areas (including those in the Southeast of the country) will be able to have access to new sources of affordable and cleaner energy, with which Jaguar will continue to improve people’s quality of life and enable the energy transition in our country.
The use of this novel technology opens a new chapter for the hydrocarbons industry in Mexico, expanding the commercial viability of gas fields in remote areas and enabling the production of this fuel without the need to build a physical gas pipeline, which promotes the country’s economic development and favors the maintenance of the environment.
“Jaguar’s priority is that our operations benefit local communities, our collaborators and national suppliers. For this reason, we lead the private onshore exploration and production of oil and natural gas through conscious and responsible operations, positively impacting the transformation of our country,” concluded Levy.
About Jaguar E&P
Mexican hydrocarbon exploration and production company, convinced that through energy we can all be the engine to transform the country. Winners of 11 contracts during oil rounds 2.2 and 2.3, focusing on onshore fields, operating responsibly and adhering to high quality and safety standards. Jaguar’s priority is to optimize the exploration of Mexican fields and to continue to positively impact the communities in which it operates. Jaguar is the energy division of Grupo Topaz, a holding company founded in Nuevo León in 2011 and led by Dionisio Garza Sada.
Cautionary Note Concerning Forward-Looking Statements
This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend,” “aimed” or other similar words. These forward-looking statements reflect, as of the date such forward-looking statements are made, or unless otherwise indicated, the current expectations, projections or beliefs of the Company based on the knowledge of facts, circumstances, assumptions or information currently available to the Company. These forward-looking statements necessarily involve risks and uncertainties that may cause the actual results of the Company to differ materially from the Company’s expectations, and even if such actual results are accomplished or substantially achieved, there can be no assurance that they will have the expected consequences or effects. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on the Company, include, but are not limited to: volatility in market prices for oil and natural gas (including as a result of a sustained low oil price environment due to the COVID-19 pandemic and the procedures imposed by governments in response thereto and the actions of OPEC and non-OPEC countries); changes in the economy that affect demand for our products; the impact, duration and spread of the COVID-19 pandemic and its severity, the capabilities of the Company’s protocols to manage COVID-19; uncertainties associated with estimating and establishing oil and natural gas reserves and resources; liabilities inherent with the exploration, development, exploitation and reclamation of oil and natural gas; uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; increases or changes to transportation costs; the Company’s ability to raise capital and to continually add reserves through acquisition and development; the Company’s ability to access additional financing; the ability of the Company to maintain its credit ratings; the ability of the Company to meet its financial obligations and minimum commitments, fund capital expenditures and comply with covenants contained in the agreements that govern indebtedness; the ability to satisfy the Company’s obligations under its exploration and extraction agreements entered with the Mexican Hydrocarbons Commission (Comisión Nacional de Hidrocarburos); political developments in the countries where the Company operates; the uncertainties involved in interpreting drilling results and other geological data; geological, technical, drilling and processing problems; timing on receipt of government approvals; fluctuations in foreign exchange or interest rates and stock market volatility; weather conditions, including, but not limited to, excessive rain and disasters such as earthquakes and floods; the regulatory environment, including environmental, energy and tax related rules and regulations. The information contained in this news release is subject to change without notice, and the Company is not obligated to publicly update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Advisory Note Regarding Oil and Gas Information
Actual oil and natural gas reserves and future production may be greater than or less than the estimates provided in this news release. There is no assurance that forecast prices and costs assumed and presented in this news release, will be attained and variances from such forecast prices and costs could be material. The estimated future net revenue from the production of the disclosed oil and natural gas reserves in this news release does not represent the fair market value of these reserves.
The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.
There are numerous uncertainties inherent in estimating quantities of crude oil and natural gas reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil and natural gas reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For those reasons, estimates of the economically recoverable crude oil and natural gas reserves attributable to any particular group of properties, classification of such reserves is based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary.
The Company’s actual production, revenues, taxes and development and operating expenditures with respect to its reserves could vary from estimates thereof and such variations could be material. All evaluations and reviews of future net revenue are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned.
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