Black gold in Paraguay

By Rodrigo Aguirre, Berkemeyer Attorneys & Counselors

The companies President Energy, Pirity Hidrocaburos and Crescent Global Oil have informed they will commence perforation of three wells in Paraguay’s Chaco region on March of 2014. These perforations will be the first samples of Paraguay BLACK GOLD.

According to the sub-ministry of Mines and Energy, the last perforations in Paraguay were performed by the firm Primo Cano Martínez SA in the year 1997. Using the latest technology (3D) the firms involved in the explorations have been able to pin point the oil reservoir. This is the first exploration of its kind to be undertaken in the region in over 25 years.

The companies have been granted the license for the perforation in Paraguay’s Chaco region. Activities initiated in December of 2012

According to data from the Paraguayan sub-ministry of Mines and Energy from 1945 to the present there have been a total of 15,859 km of seismic lines and wells have been drilled 48 oil exploration in the country, of which 28 wells (58%) recorded evidence of the existence of hydrocarbons.

Oil exploration in Paraguay had its beginning in 1944 when the company Union Oil CO, California, obtained the authorization for exploration in the Paraguayan Chaco.

This company completed the acquisition of 4,600 km of seismic lines and drilled the first 5 deep exploratory wells which were the pioneers in the country: Santa Rosa, Pirizal, La Paz, and Oriuela Picuiba

Paraguayans hopes are high on the benefits the black gold will bring.