Halliburton Latin America S.A. projected an all open flow production potential of up to 71.8 million standard cubic feet per day (MMscf/d) of gas for the Cienaga de Oro reservoir. The Well Head Flowing Pressure (WHFP) test was executed along the 595 foot section of sandstones in the Cienaga de Oro Formation. The short test was carried out during November 10th-12th following international standards of four equal time flow periods of 4 hours. The LC-1 well is located less than ten kilometers from the existing Guepaje-Corozal gas pipeline. Gas samples have been sent to laboratories for definitive analysis of quality and calorific value.
Jose Francisco Arata, Chief Executive Officer stated, "We are extremely pleased with this discovery at Prospect A of the La Creciente contract. With strong demand for natural gas in Colombia and excellent regional infrastructure surrounding La Creciente, we look forward to bringing this discovery into production and pursuing further exploration activities at the other prospects located in this area."
The LC-1 Well, spudded on October 13, was drilled to a final depth of 11,572 feet. When drilling the top of the Cienaga de Oro Formation, an influx of high pressure fluid charged with gas was observed and quantities of gas were flared during two days in order to relieve pressure and maintain a safe working environment. The rest of the hole was drilled under similar high-pressure conditions and although the mud weight was progressively increased to 13.8 pounds per gallon, the well experienced two additional important gas outflows. The reservoir pressure has been estimated at 7,900 psi, some 3,000 psi higher than the pressure encountered at analogue gas wells in the area.
The Cienaga de Oro Formation was the primary objective of well LC-1. Its 595 foot gross interval is 200 feet thicker than any other well drilled in this region and its composition is 75-80% sandstones and conglomerates. During drilling, several gas-rich readings of C1 (methane) were registered in the upper part of the section, which was logged and interpreted as a gas-bearing reservoir.
Readings of C1 (methane) up to C5 (isopenthane) were also encountered at the Porquero Formation, the well's second objective and the source rock for the basin. This unit was logged and 44 feet of net pay sandstones were recognized, with porosities of 14% and a water saturation of up to 50%, leading to the possibility that condensate may be trapped in this interval. As a result of the evaluation of the drilling logs, the company has decided to test this interval and the results will be announced shortly.
As the company was balancing the mud weight, a portion of drilling pipe was trapped inside the casing due to the very high pressures found in the well. As a result, the company obtained approval from the Colombian National Hydrocarbons Agency (ANH) to carry out the open hole short term test, to change the design of the well utilizing a 10,000 psi Blow Out Preventor and to initiate a sidetrack of the lower portion of the well using more pressure-resistant casing. Drilling of the sidetracked portion of the well will begin after testing the Porquero Formation.
The La Creciente-1 Well is located in the La Creciente Block, which was the second contract signed between the ANH and a public enterprise under the new contractual system. Additional details and graphical information has been posted on the company's website under "Investor Info."
Pacific Stratus Energy is a Canadian-based oil and gas company that initiated operations in 2004 and has acquired a total land base that exceeds one million acres. The company is focused on identifying attractive opportunities primarily within the upstream Sub Andean basins. PSE has a current net production of 2,500 barrels of oil per day, with working interests in the Caguan, Dindal, Rio Seco, Puli B, Doima (currently under dispute), La Creciente and Moriche blocks in Colombia. The company has offices in Toronto, Caracas and Bogota.
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