About Petrolatina Energy Operations Investor Information News Corporate Responsibility Gallery Aim Rule 26 Contact
16.09.09

Colon-2 Development Well Update


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

Colon-2 Development Well Update

Colon-2 development well flows oil at a substantial rate and confirms that the Colon discovery has considerable potential

PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company focused on Latin America, announces that the Colon-2 well, on the La Paloma block, is now on test and is currently flowing oil at a substantial rate.

Highlight:

• The Colon-2 development well has been placed on a production test and is producing oil at an average rate of 664 barrels of oil per day (“bopd”) on a restricted choke over the first three days of testing.

Juan Carlos Rodriguez, Chief Executive of PetroLatina, commented:
“The success of PetroLatina’s Colon-2 development well is most encouraging in that it not only provides the Company with increased short term cash flow, but also sets the stage for a full scale development of the Colon field discovery.”


Colon-2 - La Paloma Block

As previously announced, the Colon-2 well, the first appraisal well to be drilled following the Colon-1 discovery earlier this year, and located about 0.25 miles (450 metres) north of that well, has been successfully drilled to a total measured depth of 9,300ft, logged, cased and cemented. Colon-2 found the same oil bearing pay zone as that found to be oil productive in Colon-1, only 12ft structurally lower to that well. This was somewhat higher than the pre drill estimate and essentially serves to confirm the field maps and provide for a slightly more optimistic interpretation of oil in place than in the past. Those field maps, based on the high quality 2008 3D seismic survey, are therefore considered to be reliable.

The net oil pay thickness in the primary target in Colon-2 was essentially the same as in Colon-1 confirming that this reservoir has considerable potential. In addition to the specific Umir pay sand discussed above, the Colon-2 well found and tested oil from additional pay in a sand 300ft deeper than that which produced oil in Colon-1. Colon-2 also encountered oil pay, based on log interpretation, in an Upper Umir sand, also believed to be oil bearing but not tested in Colon-1.

The main Umir sand pay zone was cored throughout and the core is currently being analysed to provide accurate porosity and permeability data for reservoir modeling purposes and the recalculation of reserve volumetrics.

The primary target Umir sand in Colon-2, as well as the deeper sand noted above, were perforated over the interval 8,774 to 8,812ft (38ft net) and 9,015 to 9,032ft (17ft net) respectively and testing of the well commenced on 8 September 2009. The well was flowed at an average rate of 664 bopd through a restricted choke between 8 to 16/64th over the initial three days of testing. Essentially no water was being produced at the end of this period confirming that both of the two zones under test are oil bearing. The flow rate and flowing pressures were stable at the end of the test period and the well continues to flow and the cumulative production to 14 September 2009 was 3,138 barrels of oil.

The oil produced from Colon-2 is being trucked to the Ecopetrol S.A. receiving station at Ayacucho and sold under the same terms as those which apply to the Colon-1 oil production.

The Colon-2 well was drilled on the La Paloma Block in which the Company holds an 80% interest. This block is held under the same attractive terms from the Agencia Nacional de Hidrocarburos (“ANH”) as those outlined previously for the Midas block whereby the royalty is 8%, no “high price” or “windfall profits” formula applies until 5 million barrels have been produced and there is no state back in right. As such, each barrel of oil produced in this block is approximately three times as valuable to the Company, in terms of net cash flow, as a barrel produced from one of the Company’s traditional fields such as Los Angeles.

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)207 766 0075

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 45% 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).

News Archive:

« Prev |6 7 8 9 10 11 12 13 14 15 | Next »
22.01.10  Appointment of Joint Broker
PetroLatina Energy Plc ("PetroLatina" or the "Company") Appointment of Joint Broker PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company, focused on Latin America, is pleased...
Read ››

17.12.09  Drilling and Production Update
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Drilling and Production Update PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company focused on Latin America, announces...
Read ››

29.10.09  Director’s Dealing
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Director’s Dealing PetroLatina (AIM: PELE), the oil and gas exploration and production company focused on Latin America, was today notified that on Wednesday 28...
Read ››

22.10.09  Director’s Dealing
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Director’s Dealing PetroLatina (AIM: PELE), the oil and gas exploration and production company focused on Latin America, was yesterday notified that on 21 October...
Read ››

16.10.09  Grant of Options / Change of Name of Nominated Adviser and Broker
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Grant of Options / Change of Name of Nominated Adviser and Broker PetroLatina (AIM: PELE), the oil and gas exploration, development and production company focused on...
Read ››

30.09.09  Interim Results for the six months ended 30 June 2009
PetroLatina Energy Plc (“PetroLatina” or “the Company”) Interim Results for the six months ended 30 June 2009 PetroLatina delivers maiden interim profit before tax Drill programme’s 100% success rate to date will...
Read ››

16.09.09  Colon-2 Development Well Update
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Colon-2 Development Well Update Colon-2 development well flows oil at a substantial rate and confirms that the Colon discovery has considerable...
Read ››

03.09.09  Drill Programme and Operational Update
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Drill Programme and Operational Update 100% success rate continues with two more successful wells completed resulting in a total of six wells drilled in the programme...
Read ››

01.09.09  Change of Registered Office
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Change of Registered Office PetroLatina (AIM: PELE), the oil and gas exploration and production company focused on Latin America, announces that the registered office...
Read ››

28.08.09  Holding in Company
PetroLatina Energy Plc (“PetroLatina” or the “Company”) Holding in Company PetroLatina (AIM: PELE), the oil and gas exploration and production company focused on Latin America, received notification today from Crosby...
Read ››

Unsubscribe:

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




subscribe