Amazon Mining finds gas field in Brazil's Cerrado Verde

9/16/2010

Amazon Mining finds gasfield in Brazil's Cerrado Verde

Amazon Mining Holding has achieved a significant natural gas discovery near the company's Cerrado Verde Project in Brazil's Minas Gerais state.

Minas Gerais Governor Antonio Anastasia reported the find today. The state of Minas Gerais holds a 49% participation in Amazon Mining, which is also composed of Orteng, Imetame Engenharia, and Delp Engenharia. He said the discovery is located within 40 km of Amazon's mineral claims and was the first well drilled by the syndicate in one of its five exploration areas.

Anastasia said that the discovery in the Cerrado Verde region is hoped will lead to even lower prices to the local market because the region is not yet served by a gas pipeline that could transport the product to more distant consumers. The gas reserves were discovered with the intersection of free flowing gas at 1,440 meters, which is expected to be the first of a multiple horizon system that might reach a depth of 2,500 meters.

Expectations are that the well will reach that depth within 60 days. According to the state Secretary of Mining, Metallurgy and Energy, Paulo Sergio Machado Ribeiro, "Irrespective of any long term project, the aim is to start production by next year in order to benefit the industries established in the region."

 

 

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