Oil & Gas Operations

Focussed on oil exploration and production on-shore Brazil.

Brazil is one of the few countries in the world with attractive fiscal terms, a strong independent regulator and excellent prospectivity.  The prospectivity in particular has been demonstrated by Eromanga's first two projects.  Both were completed as future producers with total reserves and resources of around 140 mmBbl of oil in place  (mid case, 100% basis).

Eromanga is working in a low cost environment.  Capital costs are low because the fields are on shore and typically in flat dry country with excellent road access.  Reservoirs are at shallow depths by industry standards and oil recovery is by conventional drilling and pumping operations.  Because Eromanga is focussed on basins with existing production, oil and gas infrastructure is excellent and there is good access to international and local service companies.   

The business environment is also excellent, since starting work in the country in 2006 Eromanga and its operating partners have completed seismic programs, exploration drilling and production testing generally on time and within budget.

Brazil's monopoly oil company left a lot behind

Petrobras, Brazil's state oil company had a monopoly on petroleum exploration and production activity until the sector was opened to qualified oil companies through a series of nine licence rounds by the ANP, Brazil's petroleum industry regulator.  

Eromanga believes that Petrobras, while technically one of the best oil companies in the world, did not have the capital or incentive to pursue small and mid-sized opportunities.  Eromanga's own success in exploration has proved that this opportunity does indeed exist.

Strong pipeline of development exploration and greenfield options

Eromanga works its portfolio of opportunities very hard.  It aggressively pursues the strongest prospects and drops the options with less value.  It applies a strict valuation and ranking process to guide these decisions. 

The Reconcavo and Sergipe-Alagoas blocks are located in mature petroleum provinces close to producing fields and infrastructure.