Operations Update
February 08 2010 - 2:00AM
UK Regulatory
TIDMPELE
RNS Number : 7961G
Petrolatina Energy PLC
08 February 2010
8 February 2010
PetroLatina Energy Plc
("PetroLatina" or the "Company")
Operations Update
New Exploration Discovery at Midas Block
Highlights:
· Ninth successive successful well drilled in the current drilling campaign;
· Zoe 1 well reached a total depth of 10,924 ft;
· Two potentially oil-bearing sections identified;
· Testing of Umir formation underway;
· Testing of primary target Lisama formation anticipated end February 2010;
· Rig mobilized and now drilling the Santa Lucia 4 development well.
PetroLatina (AIM: PELE), an independent oil and gas exploration, development and
production company focused on Latin America,announces a new exploration
discovery. The Zoe-1 exploration well has now been completed and testing is
underway. The Zoe-1 well is the ninth successive successful well drilled by
PetroLatina in its current drilling campaign.
The Zoe-1 exploration well was drilled on the Midas Block at a location
approximately 12km to the east of the PetroLatina operated Santa Lucia field.
The Zoe-1 well location was based on the interpretation of the Midas Sur 3D
seismic programme acquired by PetroLatina in 2008. It was located updip and on
the same structure as the San Alberto well drilled in 1985 by Texaco.
PetroLatina believes, on the basis of petrophysical studies, that the San
Alberto well contained producible but untested hydrocarbons in the Paleocene
Lisama formation. The Lisama formation produces oil at the Company's Los Angeles
field located 30km to the north of the Zoe prospect. In addition to the primary
Lisama formation target, the Zoe-1 well targeted a shallower secondary reservoir
known as the La Paz formation which currently produces oil at the Company
operated Santa Lucia field. A third reservoir target, the Umir formation, which
produces oil at PetroLatina's 2009 Colon discovery, was also mapped at the Zoe-1
location.
The Zoe-1 well was spudded on 2 December 2009 and reached total depth of
10,924ft on 28 December 2009. The well was then logged and the correlations
between the Zoe-1 well logs and those of the earlier 1985 San Alberto log
confirmed that, at the primary target, the Lisama formation level, the well was
about 60ft (true vertical depth subsea) structurally higher. This result
confirms the Company's geological interpretation. Log analysis run by
PetroLatina indicates that the Lisama section from 8,632ft to 8,701ft (69ft
gross) is oil bearing with approximately 47ft of net oil pay. The section from
8,701ft to 8,730ft also contains reservoir quality rock and had good oil shows;
however, based on the logs it is not yet clear whether this zone is oil bearing.
In addition to the log indicated oil pay in the Lisama section, the Zoe-1 well
also appeared to contain producible oil in the third target Upper Cretaceous
Umir section where two thin sands were encountered. Those Umir sands were found
to have very good petrophysical properties with porosities up to 27 per cent.
and permeability of approximately 100 millidarcies.
Testing of the Zoe-1 well was initiated on 15 January 2010 in the Umir section.
The Umir section was found to be somewhat over pressured and a stable flow of
approximately 42 barrels of 23 degree API oil was recorded. The flowing Tubing
Head pressure was approximately 1,500 pounds per square inch and the flow was
recorded on an 8/64th inch choke. The well currently continues on test and the
water cut is down to approximately 5 per cent. and still declining. Testing of
the Umir formation is expected to continue until around the end of February when
a service rig will then be mobilised to the well to undertake the testing of the
primary target Lisama formation and, if successful, the tying in of this
production to the Company's infrastructure in the area.
The Company notes that the above Zoe-1 results to date are not included in the
recent updated reserves assessment completed by Ryder Scott Company L.P. ("Ryder
Scott") as detailed in a separate announcement issued today.
The Latco-1 rig, which drilled the Zoe-1 well, has now been mobilised to the
Santa Lucia field where it is currently drilling the Santa Lucia-4 development
well. This development well is located between two existing wells which are
producing 19 degree API oil from the Eocene La Paz formation. Based on the
production in the first three Santa Lucia wells, the La Paz formation has good
reservoir characteristics and as a result individual wells such as Santa
Lucia-2, which offsets the well currently being drilled, has produced, in
aggregate, approximately 1.4 million barrels of oil since 1989 when it was first
put on production. The Santa Lucia field has several undrilled development
locations as well as potential extension drilling locations and a nearby
undrilled prospect. Accordingly, the Company plans to drill at least one
development well and one exploration well on this block during the current
drilling campaign.
PetroLatina is the operator of the Santa Lucia field and holds a 20 per cent.
interest in the field alongside Petrosantander Inc. (20 per cent.) and
Ecopetrol S.A. (60 per cent.). As a result of the 2007 licence extension
agreement, the Company's Santa Lucia block was extended from 2013 to the
economic life of the field, PetroLatina and Petrosantander Inc. assumed the
obligation of bearing the cost of the first three development wells to be
drilled. Once that obligation has been satisfied, the parties, including
Ecopetrol S.A., if it chooses to participate, will share the cost of any future
drilling on the basis of their participating interests.
Juan Carlos Rodriguez, Chief Executive Officer of PetroLatina, said: "The Zoe 1
well is the ninth successive successful well drilled by PetroLatina in the
current drilling campaign and we look forward to updating the market fully once
the testing has been completed. In the meantime, the drilling programme
continues apace as we seek to convert our Probable and Possible Reserves into
Proved Reserves and exploit the potential of our exploration assets."
Mr Menno Wiebe, a Non-executive director of the Company, has reviewed and
approved the technical information contained within this announcement in his
capacity as a qualified person, as required under the AIM rules. Mr Wiebe is a
Petroleum Geologist and has been a Member of the American Association of
Petroleum Geologists for more than 25 years and a Member of the Geological
Society for more than 5 years.
Enquiries:
+-----------------------------------------------+--------------------+
| PetroLatina Energy Plc | |
| | |
| Juan Carlos Rodriguez, Chief Executive | Tel: +57 1627 8435 |
| Officer | |
+-----------------------------------------------+--------------------+
| Pawan Sharma, Executive Vice President - | Tel: +44 (0)20 |
| Corporate Affairs | 7766 0081 |
+-----------------------------------------------+--------------------+
| | |
+-----------------------------------------------+--------------------+
| Strand Hanson Limited | |
+-----------------------------------------------+--------------------+
| Simon Raggett / Matthew Chandler | Tel: +44 (0)20 |
| | 7409 3494 |
+-----------------------------------------------+--------------------+
| | |
+-----------------------------------------------+--------------------+
| Evolution Securities Limited | |
+-----------------------------------------------+--------------------+
| Rob Collins / Chris Sim | Tel: +44 (0)20 |
| | 7071 4304 |
+-----------------------------------------------+--------------------+
| | |
+-----------------------------------------------+--------------------+
| Financial Dynamics | |
+-----------------------------------------------+--------------------+
| Ben Brewerton / Susan Quigley | Tel: +44 (0)20 |
| | 7831 3113 |
+-----------------------------------------------+--------------------+
Additional Information on PetroLatina Energy Plc:
PetroLatina Energy Plc (AIM: PELE) is presently focused on Colombia where it
currently holds 45% and 20% interests respectively in the Los Angeles and Santa
Lucía fields on the Tisquirama licence, and a 100% interest in the Doña María
field. In November 2007 the Company secured the extension of the Tisquirama
licence for the economic life of the fields. In April 2006 the Group acquired an
interest in two exploration blocks: an 85% interest in Midas and an 80% interest
in La Paloma. PetroLatina also owns the Río Zulia-Ayacucho pipeline in the
prolific Catatumbo basin which transports crude oil. Present
exploration/exploitation activities in this area should increase the volume of
crude oil transported resulting in an increased cash flow. Having sold its
assets in Guatemala, PetroLatina retains a 20% interest in the first three wells
and a 20% working interest in future wells. Further information is available on
the Company's website (www.petrolatinaenergy.com).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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