Fieldwood Energy’s Mexican subsidiary, Fieldwood Energy E&P Mexico, has signed a production-sharing contract for Area 4, which was awarded in the Round 1 Call 2 bid process, Fieldwood said in a news release.

Area 4 comprises the proven but undeveloped Ichalkil and Pokoch fields and is located in the Bay of Campeche at water depths of 100 to 150 feet, the release said. Fieldwood will serve as operator of Area 4 and has partnered with PetroBal, S.A.P.I. de C.V., a subsidiary of Grupo Bal, a Mexican conglomerate engaged in the mining, financial, retail and educational industries.

The signing of the contract represents Fieldwood’s inaugural investment in Mexico. The company said it will begin an approximate two-year appraisal period in Area 4 beginning early this year during which time it intends to conduct a limited drilling program and technical evaluation process.