International Frontier Resources Corporation


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Mexico is the ninth largest producer of oil in the world and the eleventh largest in terms of net exports. Mexico's main upstream attraction is a potentially vast resource base. Pemex estimates that yet to be discovered oil & gas reserves could total as much as 115 billion barrels of oil equivalent, roughly three times as much as current proven, probable and possible reserves (3P). According to some preliminary estimates, investment needs will range between US$35 billion and US$100 billion over the next decade.

International Frontier Resources ("IFR") was early to identifying the oil and gas opportunities offered by Mexico's historic energy reform. IFR, through its joint venture (JV) Tonalli Energia ("Tonalli"), was awarded Block 24 ("Tecolutla block") by the National Hydrocarbons Commission (CNH) in May 2016, in the onshore Round 1.3 bid process with an incremental royalty rate of 31.22%. Tonalli's royalty was modeled to allow for a competitive rate of return and compares favourably to royalties for other winning bids.

Following this success, IFR became one of the first foreign companies to be awarded an onshore oil and gas development block through a license contract.

The Tecolutla Block

The Tecolutla Block is a 7.2 km2 block in the Tampico-Misantla Basin located within the state of Veracruz. In 2017, IHS Markit identified Tampico-Misantla as a potential "Super Basin". The producing carbonate oil reservoir in the Tecolutla block is the El Abra formation. The El Abra ("Golden Lane") trend is a prolific Cretaceous age rudist reef complex with high quality hydrocarbon bearing reservoirs both onshore and offshore that was discovered in 1908. To date there are 45 named fields containing over 6 billion barrels of oil in place.

IFR has 3D seismic coverage over the entire Tecolutla Block, seven existing vertical wells drilled by PEMEX from which to analyze the field, and 2 step-out wells that IFR drilled in order to assess the remaining potential of the resource. Tecolutla production has recently been brought back on stream via 2 structurally advantageous wells in the field and planning for field expansion through drilling activities is underway.


As per IFR's news release in August 2022, a new strategic partnership has been formed with Mexican Jaguar Exploración y Producción 2.3, S.A.P.I. de C.V. ("Jaguar").

Jaguar is Mexico's largest onshore private natural gas company and is actively engaged in the development and exploration of 10 blocks, representing over 3044 km2 in the Mexican states of Tamaulipas, Veracruz and Tabasco. Jaguar now holds a 50% ownership stake in Tonalli and, as a result, Jaguar also owns a 50% interest in the Tecolutla Block and acts as operator of record in front of the CNH.

Under this new JV with Jaguar, IFR remains one of the only foreign publicly traded companies actively participating in Mexico's onshore energy reform initiatives. As part of the partnership, IFR & Jaguar will jointly promote optimization of the Tecolutla Block and look to pursue mutually beneficial commercial endeavours in Mexico's oil and gas industry.