Jamaica to license 22 offshore blocks

The Jamaican government and the Petroleum Corp. of Jamaica (PCJ) launched it first formal licensing round today in Houston.

Dec 17th, 2004

The Jamaican government and the Petroleum Corp. of Jamaica (PCJ) launched it first formal licensing round today in Houston. The country is offering 22 offshore blocks in the Walton basin on the south side of the island. Water depths range up to 750 m. Four onshore blocks are also available.

Jamaica has seen 11 wells drilled in its territory with only two drilled offshore. Ten of the wells had oil or gas shows and seeps are present on the island demonstrating active petroleum generation.

Recent studies by Jebco identify three petroleum systems: the Eocene, Lower Cretaceous, and Jurassic. Tilted half-grabens collected clastic material and lignites that form the source beds. Later burial and deposition of thick carbonate sections created a seal over the grabens and provided the necessary overburden to move the source beds into the oil window.

The licensing outline includes a three-part, five-year exploration phase including: two year seismic evaluation, three year drilling, and one year extension, if approved. Other terms include a 33-1/3% income tax, 12.5% royalty, and carried interests for PCJ. Jamaican officials will finalize the licensing terms early in January.

The licensing round opens Jan. 1, and will close July 15. Data packages and related reports are available. Contact Dr. Raymond Wright, Petroleum Corp. of Jamaica at email: rwright@pcj.com or www.pcj.com.

12/17/04

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