About Petrolatina Energy Operations Investor Information News Corporate Responsibility Gallery Aim Rule 26 Contact
17.03.09

Further Update re Colon-1 Exploration Well


PetroLatina Energy Plc
(“PetroLatina” or the “Company”)

Further Update re Colon-1 Exploration Well

PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company focused on Latin America, is pleased to announce that the preliminary engineering analysis for its Colon-1 exploration well on the La Paloma block in the Middle Magdalena valley, Colombia has now been completed. The preliminary analysis indicates that this new field discovery has significant potential in terms of the expected production rate and the volumes of oil discovered. The Company retains an 80 per cent. working interest in the Colon-1 well and is the operator.

As announced on 18 February 2009, the Company discovered 22 degree API oil in a new reservoir, the Cretaceous Umir sand at the Colon-1 well. The Umir formation in the Middle Magdalena valley has not previously been tested in this area, and was encountered between 8,755ft and 8,795ft. The Colon-1 well flowed approximately 1,200 barrels of oil per day (‘bopd’) at a stabilised rate on a test extending over 99 hours.

Petrophysical analysis of the well conducted by independent experts indicates that the porosity of the oil bearing reservoir is approximately 24 per cent. and that the oil saturation is approximately 72 per cent. The calculated pay in this zone is approximately 40ft of which 29ft was perforated for the tests conducted. The formation volume factor of this oil is approximately 1.08 standard cubic feet per stock tank barrel.

Subsequent to the completion of flow testing the well was shut in for an extended buildup period of 5.8 days. The preliminary analysis of this data indicates that the zone is somewhat over-pressured with a reservoir pressure of approximately 6,200 pounds per square inch and that the calculated permeability is in the range of 60 to 80 millidarcies. The combination of over-pressure and modest permeability leads to a good production index of approximately 0.4 barrels per day per pound of drawdown. This combination also appears to have allowed the well to clean up effectively as no skin damage was interpreted in the buildup analysis. These factors taken together suggest that the well is likely to produce at an initial rate near the test rate noted above of 1,200 bopd. Based on the Colon-1 results obtained to date, PetroLatina believes that this well will result in a significant uplift to the Company’s existing production, represents an important commercial oil discovery and is likely to lead to further success on the Company’s Middle Magdalena acreage in due course.

In order to predict the ultimate reservoir behavior the well will be placed on an extended production test for 180 days to assess the detailed sand quality, reservoir extent and potential recovery factors. All required documentation has been submitted to the local Ministry of Mines to enable this test to be permitted and the Company expects this permission to be granted.

Temporary production facilities will be constructed and it is expected that the well will be placed on production in approximately 45 days from now. Oil produced to date and during the test period has, and will be, transported to the Ecopetrol sales point at Ayacucho approximately 150km from the Colon-1 well location.

Re-mapping of the Colon-1 discovery is now in progress incorporating the new well results and aided by recently acquired high quality 3D seismic of the area. A preliminary estimate of the potential size of the Colon-1 discovery will be made when mapping has been completed. Mapping is also being carried out to define additional drilling locations on the La Paloma block to follow up the Colon discovery.

The rig which drilled the Colon-1 well was subsequently moved to the Los Angeles-11 development well location, and has already reached the targeted total depth. Preliminary results for the Los Angeles-11 well are expected to be available shortly and will be announced in due course.

Juan Carlos Rodriguez, CEO of PetroLatina, commented:

“We are pleased to note that the results of the Colon-1 pressure build up test appear to confirm our earlier positive view regarding the potential impact of this well on PetroLatina’s near term production rate. This drilling success will not only greatly supplement the Company’s production volumes but will also allow for development of the La Paloma field which has several additional promising drilling locations. It will also result in an increase in the Company’s reserves in due course. The proximity of this well to our existing and underutilised production facilities will allow us to monetize this discovery in the short term.”

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 Officer
Tel: +57 1627 8435
Pawan Sharma, Executive Vice President - Corporate Affairs Tel: +44 (0)207 956 2821

Strand Partners Limited
Simon Raggett / Matthew Chandler Tel: +44 (0)20 7409 3494

Financial Dynamics
Ben Brewerton / Susan Quigley Tel: +44 (0)20 7831 3113

Additional Information on PetroLatina Energy Plc:
PetroLatina Energy Plc (AIM: PELE), formerly known as Taghmen Energy Plc, was founded in 2004. The Company is presently focused on Colombia after the sale of its assets in Guatemala in which it retains a 20% interest in the first three wells and a 20% working interest in future wells. In Colombia, the Company currently holds 40% and 20% interests in the Los Angeles and Santa Lucía fields on the Tisquirama licence respectively, 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 with 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. Further information is available on the Company’s website (www.petrolatinaenergy.com).

Download Full Press Release

News Archive:

« Prev |5 6 7 8 9 10 11 12 13 14 | Next »
22.04.10  Update re Putumayo-4 Block
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Update re Putumayo-4 Block PetroLatina (AIM: PELE), the independent oil and gas exploration, development and production company focused on Latin America, announces...
Read ››

19.04.10  Update re Santa Lucia-4 Development Well
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Update re Santa Lucia-4 Development Well PetroLatina (AIM: PELE), the independent oil and gas exploration, development and production company focused on Latin...
Read ››

07.04.10  Final Results for the year ended 31 December 2009
PetroLatina Energy Plc (“PetroLatina”, “PELE” or the “Company”) Final Results for the year ended 31 December 2009 Extensive drill programme delivers significant growth PetroLatina (AIM: PELE), an independent oil and...
Read ››

01.04.10  Operations Update - Santa Lucia Sur-1 Exploration Well
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Operations Update - Santa Lucia Sur-1 Exploration Well PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company focused on...
Read ››

26.03.10  Operations Update - Zoe-1 Exploration Well
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Operations Update - Zoe-1 Exploration Well PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company focused on Latin...
Read ››

17.03.10  Operations Update - Serafin
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Operations Update - Serafin Gas sales expected to commence in Q4 2010 PetroLatina (AIM: PELE), the independent oil and gas exploration, development and production...
Read ››

09.03.10  Senior Secured Debt Facility of up to $75 million
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Senior Secured Debt Facility of up to $75 million PetroLatina (AIM: PELE), the independent oil and gas exploration, development and production company focused on...
Read ››

08.02.10  Resource Update
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Resource Update Proved, Probable and Possible Reserves Independently Valued at $247 million PetroLatina (AIM: PELE), an independent oil and gas exploration,...
Read ››

08.02.10  Operations Update
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...
Read ››

27.01.10  Issue of Equity and Amendment to Tribeca Loan Note
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Issue of Equity and Amendment to Tribeca Loan Note PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company, focused on...
Read ››

Unsubscribe:

Please provide your email address below to be removed from the PetroLatina Energy mailing list:




subscribe