US Tatex to tap Isaan natural gas

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US Tatex to tap Isaan natural gas 
Bangkok Post: 19 Oct 2009
www.bangkokpost.com/business/economics/25912/tatex-invests-16-4m-in-isan

Tatex invests $16.4m in Isan

Writer: YUTHANA PRAIWAN

Tatex Thailand LLC, the energy business arm of Colorado-based Wexford Capital LLC, plans to invest US$16.4 million for exploration and production at its onshore petroleum field in Thailand, said chief executive officer Julian Butcher.

The US-based private equity fund's subsidiary expects to complete three-dimensional seismic tests at the site in northeastern Thailand next month and would prepare for production next year, said Mr Butcher. It will invest $10.2 million this year and $6.2 million next year.

The field is expected to contain natural gas as it is located near the Phu Hom field in Udon Thani, which contains proven gas reserves and is operated by Amerada Hess, he said.

"Despite the oil price drop since mid-2008, Tatex still expects to see prices riding at $70 per barrel on average, while natural gas prices should be between 4.5 and seven cents per million cubic feet per day," Mr Butcher said.

Tatex expects the site could be ready to start commercial production in 2012 to 2013 when oil price are estimated to be somewhere in the range of $70 to $100 a barrel.

Wexford entered Thailand in 2007 when the 19th round of auctions for domestic exploration and production (E&P) concessions was held.

The fund invested in Thailand through Tatex Thailand and was awarded an E&P licence for the L16/50 block in the Northeast. Exploration started in January 2008.

"Although we are quite small, we are looking for opportunities to move further in the E&P business in Indonesia and are looking for a couple assets in Vietnam," Mr Butcher said.

Tatex also has one-third ownership, equal to the stakes of US-based Nu Coastal and UK-based Salamander Oil, in Apico Ltd, which is exploring the L25/43, L13/48 and L15/43 petroleum blocks in northeastern Thailand.