- The Company takes transformational steps towards its mission
of bringing clean energy to Colombia's domestic market.
- The Company, in partnership with Energy
Transitions-Plus+E.S.P, expects to have facilities and connections
ready before the end of the year to start selling gas into the
current $5 / MMBtu market.
- Final preparation on the Company's flagship SN-9 project for
planned Q4 drilling.
VANCOUVER, BC, Aug. 31, 2020 /CNW/ - Further to a prior
press release issued on August 19, 2020, CruzSur Energy Corp.
(the "Company" or "CruzSur") (TSXV: CZR) is pleased
to announce that after implementing the Work Program approved by
the National Hydrocarbons Agency-ANH, which was duly reported to
the environmental authority ANLA, CruzSur, successfully carried out
the repair work in the Aruchara 1 well, located in the María
Conchita Block in the region of La
Guajira in northern Colombia.
After drilling the cement plugs and controlling the well, DSTs
(Drill Stem Test) were carried out to determine the origin,
pressure and volume of natural gas, to be able to repair and
complete the well and have it secured.
DST results were reviewed by John
Yu, P. Eng. as an independent Qualified Reserves Evaluator
and Auditor as defined in NI 51-101 Standards of Disclosure for Oil
& Gas Activities, obtaining the following results:
The Aruchara-1 well was drilled by Texaco in 1980 to a total
depth of 9,715 feet and tested gas between 8,111 and 8,121 feet and
between 8,050.5 and 8,060.5 feet varying from 3.4 to 9.8 MMcf/d
from these two zones at that time.
This well was re-entered recently, as discussed in the Company
news release of July 24, 2020. Three
DST procedures of this well were conducted from August 5 to 19, 2020 during the re-entry and the
results are outlined below:
The first DST procedure occurred between August 5 and 8, 2020, over a period of
approximately 80 hours using 24/64', 36/64' and 48/64" choke sizes.
The interval evaluated was between 8,052 and 8,062 feet measured
depth. The well resulted at a maximum rate of 7.75 MMscf/d through
a 48/64" choke at a pressure of 2,075 psig over a three hour period
with a final shut-in pressure of 3,505 psig.
The second DST procedure occurred between August 11 and 14, 2020, over a period of
approximately 63 hours using the above-mentioned same choke sizes.
The interval evaluated was between 8,111 and 8,121 feet measured
depth. The well resulted at a maximum rate of 10.98 MMscf/d through
a 48/64" choke at a pressure of 2,437 psig over a three hour period
with a final shut-in pressure of 3,547 psig.
The third DST procedure occurred between August 17 and 19, 2020 over a period of
approximately 52 hours using the same choke sizes. The intervals
evaluated were from 8,088 to 8,094 feet and from 8,111 to 8,121
feet measured depth. Preliminary outcomes show that the well
resulted at a maximum rate of 10.420 MMscf/d through a 48/64" choke
at a pressure of 2,271 psig with a final shut-in pressure of 3,521
psig. The absolute open flow potential is estimated at 19.0 MMcf/d
and a potential of 14.3 MMcf/d with a 50% drawdown.
Previously, the Aruchara-1 well was assigned 10.5 Bcf proved
undeveloped marketable gas reserves and 16.9 proved + probable
undeveloped marketable gas reserves in the Upper Miocene sands in
the 2019 year-end reserves report. With the above data which was
conducted in a much longer period of time and with more details in
the additional Middle Miocene sands, increased natural gas reserves
would be realized in the Maria Conchita Block. The Company intends
to have an updated reserve report soon.
Based on these results, management estimates there will be a
substantial increase in resources compared to the last reserves
report. After obtaining the required permits and licenses to build
in partnership with Energy Transitions-Plus+ E.S.P, CruzSur is
planning the necessary infrastructure to connect the Aruchara 1
well to a nearby main gas line, before the end of the year, with
the objective of monetizing its natural gas resources, capitalizing
on a premium pricing market in Colombia of over US$
5 / MMBtu.
CruzSur is going to start accelerating its development plan,
taking an aggressive yet disciplined development of additional
wells on the Maria Conchita field.
The Company is also concentrating efforts to complete the
necessary social and environmental licensing procedures in the next
weeks to enable the development of the SN-9 field located in
Cordoba, Colombia, a prolific
hydrocarbon producing region near the Caribbean Coast.
About CruzSur Energy Corp.
CruzSur Energy Corp. is a
publicly traded E&P company on a mission to provide a clean and
sustainable solution to Colombia's
energy needs. The Company intends on executing this mission by
respectfully producing gas from its concessions, SN-9, a 311,353
acre block which is adjacent to Canacol's Nelson field, as well
Maria Conchita, a 32,518 acre block located in the region of La
Guajira. CruzSur's team has an amplitude of technical expertise and
proven track record building companies and creating
value.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the operations described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE CruzSur Energy Corp.