Solana Resources Limited announced that the Costayaco-3 step out well has been successfully tested at a maximum flow rate of 2,543 barrels of oil per day (bopd) from 106 feet of perforations.
Solana holds a 50% working interest in the Costayaco Field that was discovered in 2007 and which is located in the Chaza Block, Putumayo Basin, Colombia. Gran Tierra Energy Inc., the operator, holds the remaining 50% interest.
On April 6, 2008, Solana completed initial testing operations on Costayaco-3, the third well drilled in the Costayaco field. The well had drilled through the same sequences encountered in Costayaco-1 and -2, reaching a total depth of 8,620 feet on February 20, 2008. Log interpretations from data acquired during drilling indicate potential oil pay in the Caballos and Villeta T Formations and in the poorly developed Rumiyaco Kg and Villeta U Formations. A drill-stem test (DST) and flow-test (FT) program was performed to evaluate the Caballos Formation and the Villeta T Formation, the two primary reservoirs in the Costayaco Field.
DST-1: (8514 - 8428 and 8533 – 8537 feet; 18 feet of perforations) recovered 325 barrels of water through swabbing from the Lower Caballos.
DST-2: (8490 – 8502 feet; 12 feet of perforations) recovered 159 barrels of water through swabbing from the Lower Caballos.
DST-3: (8470 – 8480 feet: 10 feet of perforations) recovered 141 barrels of oil with no water through swabbing over a 25.5 hour period.
FT-1: (8242 – 8264, 8270 – 8282, 8295 – 8305 feet; 44 feet of perforations in the Villeta T, and 8376 – 8386, 8392 – 8404, 8406 – 8424, 8436 – 8458 feet; 62 feet of perforations in the Upper Caballos Formation) flowed at a combined maximum rate of 2,543 bopd of 30 degrees API oil with only traces of water. At the end of the 36 hour test the flow rate was still increasing.
The results of this testing programme indicate an oil-water contact (OWC) below 8,486 feet in the Lower Caballos Formation. This is the first definitive identification of an OWC in the Costayaco field. This data will allow for a more definitive calculation of the reserves in the Caballos Formation. No evidence of an OWC has been identified in the Villeta T. Final completion operations are currently underway in preparation for long term testing of Costayaco-3.
Drilling operations are continuing at Costayaco-4. This deviated well is being drilled from the Costayaco-2 surface location targeting a down hole location some 540 meters to the north. Cores are planned for the main reservoirs and drilling is expected to be completed in late May Wells Costayaco-5 through -7 are budgeted for the remainder of 2008.
Construction of the eight inch, 10 kilometre pipeline, tying Costayaco-1 into Uchupayaco, is expected to begin in mid-April and be completed in mid-July. This production line will replace the current trucking operations.
Work is underway to reduce existing infrastructure production constraints beyond Uchupayaco. It is currently anticipated that 6,000 to 9,000 bopd (gross) could be accommodated during the second half of 2008. A second stage of infrastructure expansion, to accommodate the anticipated increase in production from the continuing Costayaco drilling program, is currently being evaluated.
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