Cheiron Holdings Ltd., a PICO Group company, announced today that leading petroleum geologist Alfredo Eduardo Guzmàn has been named President and Chief Executive Officer of Compañía Petrolera de Altamira (Altamira, or CPA).

Guzmàn comes to Altamira with a proven track record of achievements in the exploration and development of offshore and onshore oil and gas reserves from a wide range of environments.

A former commissioner of the National Hydrocarbon Commission who has served as an advisor, board member and consultant to an array of enterprises since 2007, Guzmàn joins Altamira from Tarco Latin America. From 1974 through 2007, Guzmàn served in a variety of senior capacities at Petróleos Mexicanos (PEMEX) Exploration and Production, where he most recently was Vice President North Region SBU and VP of Exploration for all of Mexico.

Guzmàn holds bachelor’s and master’s degrees in geology from Texas Tech University, studied business at Universidad Panamericana, and has served as part-time faculty at the University of Sonora, the Autonomous University of Chihuahua, and the Autonomous University of San Luis Potosí.

A fully bilingual speaker of Spanish and English, Guzmàn is known throughout the industry for his implementation of a new process of evaluation for PEMEX’s exploration function that led to the development of a 2,500-opportunity exploration portfolio from a prior base of fewer than 40. Guzmàn has a proven track record with mature fields, having led a project to rejuvenate gas production that took Mexico’s Burgos Basin from 180 million cubic feet per day (mmcfd) to 1,650 mmcfd with the discovery of more than 90 new fields. He further implemented a program to rejuvenate the Veracruz gas basin, increasing production from 150 mmcfd in 2003 to over 1 billion cubic feet per day at the time of completion.

Professionally, Guzmàn is a 43-year member of the prestigious American Association of Petroleum Geologists, where he held the Presidency for the Latin American Region, the Vice Presidency for International Regions and was a candidate for the worldwide Presidency. He also was President of the Mexican Association of Petroleum Geologists, and is a member of the Mexican Academy of Engineering, Mexican Association of Petroleum Geologists and Society of Petroleum Engineers, among others, and has published extensively.

Guzmàn will lead Altamira through the implementation of a Field Development Plan for the Altamira asset part of Petróleos Mexicanos’ 2012 bid round. The field’s current 2P reserves are estimated to be around 10 million barrels of oil with huge upside potential.

Altamira’s initial plan over the next two years is to shoot a large area of 3D seismic and drill over 10 development wells with a view to ramping up the field’s production. The company is currently assessing the applicability of EOR techniques in the field as well as room for production optimization.

Following the 20 August 2012 signing of the Altamira service contract by Altamira parent company Cheiron Holdings, CPA began the handover phase with PEMEX on 1 October 2012 and expects operations to begin on 1 January 2013.

Coming in October, 2012, management expects to announce the extension of the Zahra Barge Service Contract for an additional three months period to end in January 2013. The Zahra Barge, which was originally designed as a jack up barge, is located adjacent to Platform B. Due to the limited space available on the platform, Zahra Barge acts as a key service provider for platform B; including the well services, manpower accommodation, power generation and crane.

Amal Field 100 day drilling and workover campaign is expected to commence during October using Bahari 1 Rig. The Rig contract is a farm out agreement between Amapetco and Zeitco. This campaign includes the drilling of Am-22 as well as the workover jobs for Am-17and Am-18 with an expected gain of +/- 2,200 bopd.

On September 30, 2012, a farm out agreement will be signed between Gempetco and SUCO to hire Zoser Rig for a 3 months period starting Mid October 2012. The campaign includes work over activities for five wells in both Gemsa and Zaafarana Fields with an expected gain of +/- 2,500 bopd.

20 August 2012

Cheiron Holdings Ltd. (CHL) announced today the signing of a service contract for the Altamira asset part of Petróleos Mexicanos’ 2012 bid round.

The signing was through CHL’s recently incorporated Mexican SPV Compañía Petrolera de Altamira (CPA) with an effective start date to the contract of 1 October 2012.

Altamira is a service contract for Pemex as field owner; the field’s current 2P reserves are estimated at c. 10 million barrels of oil with substantial upside potential.

CHL is currently in process of preparing its Field Development Plan, which includes a major drilling program as well as several technological improvement pilots that, once successful, are expected to have strong impact on the current daily production levels.

Cheiron is also in process of establishing an operating office in Tampico from which it plans to expand its operations in Mexico.

20 June 2012

Cheiron Holdings Ltd. (CHL) has outbid its competition on the Altamira asset part of Petróleos Mexicanos (Pemex)'s 2012 bid round.

Altamira is a service contract for Pemex as the field owner; the field's current 2P reserves are estimated to be around 10 million barrels of oil with huge upside potential.

CHL’s initial plan over the next two years is to shoot a large area of 3D seismic and drill over 15 development wells with a view to ramping up the field’s production. CHL is also currently assessing the applicability of EOR techniques in the field as well as room for production optimization.

The signature date for the contract is 20 August 2012, with the handover of operations expected in the fourth quarter of 2012.

Cheiron has operated the Zaafarana Concession since 1999 when it acquired 60% of BG’s 50% share, to hold a 30% Working Interest (“WI”) in the Concession. Since it took over operations at the Concession, Cheiron has successfully arrested the field production decline trend and maintained production at a plateau rate of 7,000 to 8,000bopd. Zaafarana Field production commenced via a 15-slotwellhead platform connected to the FPSO vessel moored 750 meters away. This FPSO is the only FPSO in the Gulf of Suez and wider Middle East.

Following up on its successful campaign in 2008, during which Cheiron Energy drilled 5 wells in Amal Field, the company has completed its surface and subsurface studies. Cheiron is currently preparing for the drilling of two exploratory wells and three development wells in Amal in Q3 2012.

As a result of the 2007-2008 development drilling program, production at the Concession had increased by late 2008 to 9,000 bopd and 18 MMscfd (maximum pipeline capacity). At the outset of implementing the Plan, the Rudeis objective was realized in three of the five wells drilled in 2007-2008. The Belayim Reservoir was also confirmed as an additional gas reservoir target. This proved substantial additional reserves in the field.

8 February 2012

Cheiron has successfully completed the first phase in unlocking the potential value of its Amal field with the completion of a new 24” subsea production pipeline—one of the largest in Egypt’s Gulf of Suez region—and new processing, gas compression, water injection, and artificial lift facilities. The pipeline will enable the Amal field to produce higher production levels with an initial increase of production rates to 22,000 bopd and 85MMscfd (maximum pipeline capacity) of oil and gas respectively eventually reaching 120 MMscfd.

Cheiron is on schedule to begin its ambitious drilling program early next year; the drilling program is expected to increase its production from the Amal field more than threefold.

6 February 2012

On January 8, 2012, the Rig approached the PF to fish the stuck ESP Pump. The workover was successfully completed and put on production on February 6, 2012. A larger pump was installed with a more capacity, which in return increased oil production to 1,900 bopd—a rate that is higher than the initial expectations for the well’s production.