MercoPress. South Atlantic News Agency

Exploratory drilling for gas in Tierra del Fuego next March.

Chile's government owned oil company, Enap, is preparing tender conditions for drilling an exploratory well in Lake Mercedes basin, Tierra del Fuego, reports Punta Arenas press.

Enap is actively promoting natural gas exploration in Magallanes Region to help overcome the country's energy shortage.

Companies interested in participating will have until February 11 to check related information and on February 18 will be invited to visit the Lake Mercedes basin area where a 3D seismic survey was completed last year by Veritas Geophysical demanding an investment of four million US dollars.

Tender proposals and documents will be opened next March 15.

The Lake Mercedes basin was exploited in the past and it's known to contain natural gas deposits, but the current initiative is geared to determine if with advanced technology volumes are commercially viable.

The drilling of the exploratory well is estimated will have a cost of 13 million US dollars.