Testing the Atlantic Mirror Theory Justin T
April 2013 ® Testing the Atlantic Mirror theory Justin T. Stolte, Latham & Watkins LLP, Houston With editorial contributions by Michael P. Darden, Latham & Watkins LLP he task of an explorer is difficult and demanding. Shareholders and Given the current state of management, along with the broader market, expect—and, in some depressed natural gas—and, recently, Tcases, mandate—the relentless generation of prospects located in natural gas liquids—prices and the regions of the world that are stable, both politically and fiscally, at entry costs significant cost and time requirements that are relatively insignificant (i.e., limited signature bonuses, limited work associated with LNG projects, the commitments, and/or limited promotes). task is further burdened with the expectation that such prospects will be oil-bearing. This task has proved Fig. 1: Suriname – Guyana Basin somewhat daunting to explorers 60˚ W 55˚ W in recent years, given the lack of Atlantic Ocean “white-space” currently available to international oil and gas companies that satisfy such expectations. Nonetheless, as the US Suriname – Guyana Basin unconventional land-rush shifts to a development stage, explorers have refocused, or, for some companies, enhanced, their efforts towards identifying prospects in parts of the Onshore world that, for a host of reasons, GUYANA Suriname Guyana borderproducing elds Suriname French Guiana border have been under-explored by the industry. Frontier basins in isolated portions of the world have been 5˚ N the recipients—and, in most cases, beneficiaries—of such efforts. One Area SURINAME FRENCH such area, the Equatorial Margin shown GUIANA of offshore Guyana, Suriname, and French Guiana in South America (the “Guianas Equatorial Margin”), has seen a great deal of attention, as several companies have recently SOUTH 0 Miles 124 become very active in the area.
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