The long-awaited liberalisation of Mexico’s oil and gas industry is creating new opportunities for explorers. The Sabinas - Rio Grande Basin includes the Perdido Area - a large area of prospective deepwater acreage derisked by recent Pemex-led drilling and exploration success across the border in the US Gulf of Mexico. The Round One deepwater licensing round opened at the end of 2015, and bids are expected by the end of 2016. Acreage will be offered under concession-style licences, and a biddable component is an additional royalty, on top of a price-based royalty. Bidding levels will be a key factor in determining the future value creation potential. This Exploration Basin report provides a detailed analysis of exploration performance and future potential, including location maps and details on costs, licensing and fiscal terms. We model prospect and play economics and forecast yet-to-find volume. This report is accompanied by excel downloads which detail costs, volumes and value.