20 years of experience in Supply Chain, Management and IT, working for multinational oil and gas companies in Latin America: Colombia, Argentina and Mexico.
Mexico City, Mexico, March 31, 2021. – Jaguar, a 100% Mexican hydrocarbon exploration and production company, made important discoveries of natural gas in the Burgos Basin, in the Dieciocho de Marzo field, and natural gas with light oil in the Spinini prospect, in the Tampico – Misantla Basin.
The blocks containing these fields were awarded to Jaguar in Round 2.2 and 2.3. To date, Jaguar has engaged in exploration activities, including drilling wells with a total cost of over $100 million dollars. Jaguar discovered reserves estimated by management to be between 30 and 50 billion cubic feet (BCF) of natural gas in 18 de Marzo and 160 BCF of gas and between 20 and 30 million barrels of light crude in Spinini (both wells are management estimates of recoverable hydrocarbons on a PMean estimate).
“The discoveries in the Dieciocho de Marzo and Spinini fields are the result of our constant effort and work for the energy development of Mexico. As an operator that focuses its energy on natural gas exploration and production, these discoveries represent a turning point for Jaguar. With Dieciocho de Marzo alone and our other current gas developments we expect to increase our annual gas production by up to 8 times”, said Dionisio Garza Sada, Chairman of the Board of Directors of Jaguar and CEO of Grupo Topaz.
The Dieciocho de Marzo field is located in the Burgos Basin and is part of a contractual area located northeast of Tamaulipas. Over the next 3 years, Jaguar plans to allocate close to $ 30 million in investment for the drilling of wells and a tie in pipeline in the complex. The company is currently producing roughly 10 million cubic feet per day of gas, and the figure is expected to grow in the coming months as additional drilling and repair activities increase the production capacity.
Meanwhile, in the Spinini field located in the Tampico – Misantla Basin in Veracruz, according to Jaguar’s first management estimations, reserves of 160 BCF of gas and between 20 and 30 million barrels of light crude oil are projected on a PMean basis. Jaguar will process the data to characterize the geology of the area and subsequently bring these resources to market.
“With these findings we have demonstrated that Jaguar is a responsible operator with the technical and operational capacity to continue exploring for and developing natural gas resources. In the Burgos Basin, there were fields that had previously been under the administration of Pemex which were declining by 60% per year. Jaguar not only managed to reverse this trend, but we have also increased the production by 33% in just one year, through facility repairs, workover and the optimization of its facilities. Additionally, we have found new economically viable gas potential in the basin in areas that were thought to be no longer attractive”, said Warren Levy, CEO of Jaguar.
In 2020, Jaguar drilled 7 wells. During 2021, Jaguar plans to drill between 12 and 20 wells.
Jaguar’s presence in the national energy market strengthens Mexico’s competitive position and supports the objective of increasing domestic natural gas production. In a horizon of 5 to 7 years, Jaguar’s hydrocarbon portfolio has the potential to produce close to 10% of the total natural gas that Mexico requires.
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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