U.S. Capital Energy has six months to find Toledo oil
Tuesday, July 14th, 2015. BMG: The Amandala newspaper reports that U.S. Capital Energy, which holds a concession to drill for petroleum within the Sarstoon Temash National Park, has yet to make a decision on whether to drill a second well not from the first, now abandoned, well inside the park.
Country representative Alistair King told Amandala that the company is currently doing technical assessments on its exploratory work to date, after which a final decision will be made. The company also wants to meet with Government before investors decide the way forward.
However, time appears to be running out. According to King, the 2008 production sharing agreement extends to January 22, 2016 – less than six months from today. The permit to enter the national park does not expire until next April.
If no commercial find is declared by next January, it could be the end of the road. Any such find grants 25 years of development.
King told Amandala that a second well is ready to go if the decision is made; it will be 15 feet from the site of the first well on the same drill pad inside the park.
According to King, US Capital’s investment in the first well has been roughly US$22 million, and he estimated that US Capital had so far spent US$40 million on oil exploration activities, including preliminary work such as seismic testing in southern Belize.
Sarstoon Temash Institute for Indigenous Management (SATIIM) continues to challenge the validity of the grant of concession.
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