South America - Background

Map of MEPS interests in South America In 1991 MEPS' attention moved from the Middle East to South America where Hillsboro (through Tethys Petroleum Limited) negotiated the rights to explore the southern portion of the Llanos Basin in Colombia.

Over the next 10 years a series of related companies, including Arabex Petroleum N.L., Tuskar Resources Plc., Coplex Resources N.L., and Petrolex Energy Corporation, conducted exploration and appraisal activities in the Southern Llanos Basin leading to the discovery of the Rubiales Oilfield.

By 1998 a total of 23 wells had been drilled on the Rubiales Oilfield, commerciality had been declared and Ryder Scott Company of Houston Texas confirmed that oil in place for the Rubiales Oilfield was in excess of 1.4 billion barrels, of which over 200 million barrels was considered to be recoverable.

The Rubiales Oilfield was briefly acquired by Oslo-listed Northern Oil in 2000 and was later sold to American and Brazilian interests without further developing the field. MEPS was instrumental in arranging for this acquisition and keeps a watching brief on the development of the field.

In 1997 Mr. Fellowes returned to South America, and was successful in negotiating the rights to Block BS-3 in the Santos Basin, southern offshore Brazil through direct negotiations with Petrobras. MEPS is keeping a watching brief on the development of the Coral and Estrela do Mar oilfields and opportunities to participate in this and other projects in Brazil.