Gold Oil to Test Peruvian Well Later This Month

The San Alberto-1X in Peru was selected following extensive regional geological and geophysical studies that tied in Block XXI to other Palaeozoic and Tertiary wells and fields. The well was spudded on July 11, 2006 and reached total depth of 5,113 feet on August 3, 2006, meeting the geological objectives in the drilling program.

The objectives of the well were the Tertiary Verdun sands that produce gas in Olympic's Las Casita gas field 20 kms to the west of San Alberto-1 and the fractured Palaeozoic quartzites that produce oil in PetroTech's offshore San Pedro field 50 kms to the west. Logging, drilling results and regional information showed 250 gross feet of hydrocarbon bearing sands in the Palaeozoic and 315 gross feet of hydrocarbon bearing sands in the Verdun. The decision was taken to production test these hydrocarbon bearing sands in both the Verdun and the Palaeozoic.

After circulating to completion fluid and running a slotted-liner over the Palaeozoic the drilling rig was moved off location. After clearing the location a work-over hoist and test facilities moved on to the location on August 22nd and produced formation water at 960 barrels per day from the base of the Palaeozoic, below the hydrocarbon bearing interval. A heavier rig will move back onto location in mid to late October to pull the slotted liner and run and cement a new liner over the Palaeozoic which will isolate the water and allow the hydrocarbon bearing intervals to be perforated and tested.

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