Kappa Resources Spuds Acacia Este-2 Appraisal Well in Colombia

Magdalena Basin
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Black Rock Oil's joint venture operator Kappa Resources Colombia Limited spudded the Acacia Este 2 appraisal well in the Las Quinchas Association Contract in the Middle Magdalena Valley of Colombia on Dec. 21, 2007. Drilling operations are under way.

The Directors expect the well to take up to 40 days to drill, test and complete.

Acacia Este was announced as a discovery on the 18 July 2007 producing oil from several sand horizons in the Tertiary Mugrosa Formation. Testing subsequently recovered heavy oil to a maximum rate of 101 barrels per day with only 5 per cent. bottom sediment and water at standard conditions and low pump rates. Following re-completion, the well was put onto a production test, the results of which at this point are very encouraging. Our joint venture partner in Colombia, Kappa, intends over the next year to conduct a program of appraisal well drilling and new seismic acquisition over the Acacia Este field to delineate the size and nature of this important discovery.

"The spudding of Acacia Este 2 which is 0.5 kilometers from the Acacia Este discovery well represents the first step in the appraisal of the significant heavy oil discovery made earlier this year," said Black Oil and Gas Managing Director John Cubitt. "We eagerly await the outcome of the well."


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