Canadian Junior Sets Sights on Mexican Gas

Canadian junior producer International Frontier Resources (IFR), which is already developing crude oil resources in Mexico, is ready to turn its attention to gas prospects that will be offered in upcoming national auctions.

IFR and Mexico City’s Grupo Idesa jointly own Tonalli Energia, which has started developing their Tecolutla block in Veracruz, but CEO Steve Hanson said March 9 it will now be looking at gas-prospective blocks.

“Our partner is a part owner of the Braskem-Idesa polyethylene plant, which is one of the largest users of natural gas in the country,” Hanson said. “Our partner needs feedstock. Natural gas is in great need in Mexico and we see huge opportunities in gas and liquids.”

IFR bid unsuccessfully in the nine auctions already held in Mexico, and will be active at a July 25 auction, when 37 blocks will be offered, and at the September 5 auction, when nine shale blocks in the Burgos basin will be offered. Those nine blocks contain an estimated 1.6bn barrels of oil equivalent (boe) of unconventional oil and gas an another 53mn boe of conventional resources.

Hanson said Tonalli will participate in both auctions and will likely target gas. “It will be a big year for us,” he said. “We expect to be active in both auctions. We have enough capital to participate in the bidding process.”

Grupo Idesa and Brazilian petrochemical giant Braskem are partners in the $5.25bn Ethylene XX1 plant, Mexico’s largest petrochemical facility, which opened in 2016.