Canada’s International Frontier Resources Corp. (IFR) said its jointly owned Mexican company Tonalli Energia identified high interest development targets at its Tecolutla onshore oil and gas block.

Tonalli acquired additional 3-D seismic data for an extended area including and offsetting the Tecolutla Block when it signed the license contract on Aug. 25. Areas of the reservoir were identified that could be higher and thicker than previously reported and which have not been penetrated by existing wells.

Tonalli will formally assume operatorship of the Tecolutla Block from Pemex on Nov. 23.

Regulatory processes are underway, and operations are scheduled to begin in first-half 2017. Tonalli initiated oilfield services contracting. Existing drill sites and extensions of existing drill sites will be used in operations. Tonalli plans to drill its first well in 2017.

The project partner Grupo IDESA will truck production to Pemex midstream facilities in the region.

The Tecolutla Block was awarded to Tonalli as part of the first round and third call of Mexico's bid for mature fields, and was originally drilled without modern seismic.