1. INTER-LINK SERVICES PVT. LTD.
K-185 Sarai Jullena, New Delhi 110025
Tel. +91-26831226 Fax +91-26929055
e-mail: Mahajan@interlinkindia.net
website: http://www.interlinkindia.net
Example of opportunity in Oil and Gas Company
The opportunity includes exploration, development, production and transportation in South area
of Argentina. There are 8 exploration blocks in our files, 7 in Santa Cruz Province and 1 in
Mendoza.
Once the concession was made, there has been done geological and geophysical studies in
order to understand and define different plays, led and prospects in each block to estimates it
oil and gas content. The blocks are:
2. INTER-LINK SERVICES PVT. LTD.
K-185 Sarai Jullena, New Delhi 110025
Tel. +91-26831226 Fax +91-26929055
e-mail: Mahajan@interlinkindia.net
website: http://www.interlinkindia.net
Block Characteristics Area Capacity Investment NPV
(km2) (Mm3PE) (MMUSD) (MMUSD)
A Near Petrobras Glenn Close gas and 4878 4000 6.93 238.4
condensated basin.
B Near Fell from Geopark, who produces 3230 12971 10.84 658.2
the 50% of petroleum and 25% of gas
of Chile.
C Studies to be done in the area to 1217 6180 13.30 323.1
confirm hydrocarbon deposits.
D Visible petroleum in Petrobras zone 4700 9871 15.95 325.4
near it.
E Proven oil drillings. 6600 1616 10.45 13.6
F Gas and liquid hydrocarbons between 3450 43 6.94 0.4
1100 and 2200, depth.
G Gas detected, visible petroleum 5147 5290 16.79 317.0
H Close to important gas and petroleum 173 2470 5.58 62.4
productors.
Due to the location and the proximity to companies already exploiting blocks there, the
exploration risk is low.
Assumptions for the economic plan:
Area 11 Area 22 Area 33
4
Petroleum Price (USD/bbl) 70 70 70
Gas Price (USD/MMBTU) 5 5 5
Operative Costs (USD/bbl) 12 15 12
Transportation cost (USD/bbl) 2 2 2
Income Tax (%) 2 2 2
Royalties (%) 19 19 12
Infrastructure Lifetime (years) 5 5 5
1
Includes A, B, D and G
2
Includes: C, E and F
3
Includes H
4
If the drilling are to be productive, the Price will be 80 USD/bbl
3. INTER-LINK SERVICES PVT. LTD.
K-185 Sarai Jullena, New Delhi 110025
Tel. +91-26831226 Fax +91-26929055
e-mail: Mahajan@interlinkindia.net
website: http://www.interlinkindia.net
Estimated production:
The investment is to be done in three periods, and the participation alternatives of concessions
owners are open:
1. Non initial payment – Agreement between parts
The investor assumes the investment on the invoice delivery on his own risk, with
an assurance in the licensee name. If the drilling are find to be successful, the
investment is recovered as a part of the net results. If there is no success, the
investor goes out of business.
2. Non initial payment – Agreement between parts
Idem alternative 1 but the investor finances part of the development process.
3. Others
4. INTER-LINK SERVICES PVT. LTD.
K-185 Sarai Jullena, New Delhi 110025
Tel. +91-26831226 Fax +91-26929055
e-mail: Mahajan@interlinkindia.net
website: http://www.interlinkindia.net
An important fact of the project is the fact that the blocks are located near existing formations
with shale oil and gas with a high potential to be gas and oil producers. According to the U.S.
Energy Information Administration, Argentina has 13.4 trillion cubic feet of possible natural gas
resources and 774 trillion cubic feet of technically recoverable shale gas resources, being the
11th and 3rd respectively in the world. As can be seen in the image below, the basins are located
in the same area mentioned for the 8 blocks.