The well is near the town of Puerto Cabezas, which is on the northern side of the Caribbean coast, Susan M. Cunningham, the company's Vice President, was quoted as saying by Nicaragua's state-run news website El 19 Digital.

　　The U.S. company was granted the concession to explore, develop and produce hydrocarbons in the areas of Isabel, 114 kilometers south of Puerto Cabezas, and Tyra, which is further south on the Caribbean coast.

　　The initial stage of the project could see an investment of 90 million to 335 million U.S. dollars, and if successful, the development stage would begin, Cunningham said. That would mark the beginning of billions of dollars of investment in the Central American country, she added.

　　If hydrocarbons are found in the Nicaraguan Caribbean, the company estimates, it could extract from 200 million to one billion barrels of oil.

　　"If we are successful ... we will fulfill the country's hydrocarbon needs with potential for export," Cunningham said.

　　"The probability of success for the exploration well is 25 percent, and that percentage is not bad at all for a project of this nature," she added.