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MX21_EN_JAGUAR_WARREN

MEXICO - Energy & Mining

Warren Levy

CEO, Jaguar E&P

Bio

Warren Levy is CEO of Jaguar E&P. He has extensive experience in developing natural resource companies for over 24 years in more than 20 countries. He has contributed strategically to the economic growth and development of the industry in Latin America in executive positions in companies such as Estrella International Energy Services, Schlumberger, Pentanova Energy Corp, and President Petroleum. He has also been a board member of several oil operators and oil services companies such as Miramar Hydrocarbons, Montan Energy, and Quad Energy.

"We are looking to raise more money through a combination of Mexican and international sources that can provide the type of financing that we need to build infrastructure, gas plants, pipelines and the like."
Established in 2014, Jaguar E&P works on onshore mature fields exploration, production, and operation with a team of talented collaborators.
How close is Jaguar to doubling its gas production by the end of 2023?

For the past few years, we have been focused on getting sufficient exploration work done to ensure that we could extend all of our blocks into the incremental exploration period, which we have now done. We have nine or 10 blocks extended for another two years in the additional exploration period, and one is still pending. Since we achieved that at the end of 2021, we have shifted gears to be focused more on development activities, and we are currently drilling development wells in the northern part of the Burgos Basin with one rig. We currently have about 25 million cubic feet (mcf) a day of capacity that can flow but are working on pipeline permits to get roughly half of that production flowing. Going forward, we have three parallel objectives for the company. One is development activities in the Burgos Basin. We now have almost 0.8tcf of proven gas in the Burgos Basin that we can work on. We are looking to develop the activity in Burgos to take our production to a plateau of somewhere between 50mcf and 70mcf a day and sustain it there for a number of years. The second track is exploration activity, and continuing to explore in all ten of our blocks. Then, finally come our commercialization activities which include expanding our virtual pipelines. We want to be more aggressive in being able to disconnect gas production from the need to have existing infrastructure in the area. This is particularly valuable for remote operations, or for gas that might otherwise not be commercially viable to produce. We are looking to broaden that out extensively over the next six months to a year.

What steps is the company taking to diversify the type of clients in its portfolio?

We are looking to continue selling to Pemex on one hand, but the growth of our production will go mostly to third parties. It is central to the existence of the company to focus on areas where we can have a positive impact and move gas to end consumers with a positive social and environmental impact. We want to displace dirtier fuels with cleaner gas not just in areas that are connected to the regional grid, but also in remote areas where the other options might be burning diesel or biomass. Getting gas to those consumers is where the virtual pipelines come into play, in particular, and in some ways we are more excited about the 300,000cf a day we sell to a chili farm than we are about the 10mcf a day we sell to Pemex. What really motivates us is working with people who need gas to be able to do things more efficiently or more cleanly.

Is Jaguar EP looking for additional investors to meet its goal of producing 10% of Mexico’s natural gas?

We are looking to raise more money through a combination of Mexican and international sources that can provide the type of financing that we need to build infrastructure, gas plants, pipelines and the like. And we are also open to talking to partners on our exploration acreage where bringing in partners particularly that have complementary expertise to ours is something that we have been interested in. And now that the market is somewhat stabilized in terms of healthy pricing for gas and oil, we are starting to see companies have available capital to look to deploy elsewhere after two to three years of limited liquidity in the market. This allows us to accelerate things. We don’t necessarily need the investment but it allows us to do things more quickly, grow faster, and become relevant sooner than we would have been able to if we were limited to our own capital sources. The country has been underexplored and underdeveloped, and that now is the time for gas to come front and center for the future of Mexico’s development.

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