Aviva Petroleum reports that the INCHIYACO #1 exploratory well in the Putumayo Basin of Southwest Colombia has reached a total depth of 7,995 feet. Electric logs were run and casing has been set. The operator perforated 46 feet in the Caballos formation between 7,916 to 7,950 feet and 7,964 to 7,976 feet and production tests recovered fresh water and no oil. In the lower U Sand intervals from 7,430 to 7,470 feet and 7,480 to 7,520 feet (a total of 80 feet) were perforated. Production tests over a 3-day period have recovered fluid with high water cuts, the last measurement being a 59% water cut, yielding net oil recovery at a rate of approximately 215 barrels of oil per day (approximately 32 barrels of oil per day net to Aviva). Over the next several days further tests will be conducted, including perforation of 8 feet of section around 7,355 feet in the upper U interval, and the well will be completed. This work may improve the above results, but there can be no assurance that this will be the case.
Ron Suttill, CEO of Aviva, said: "This result is a disappointment in that expectations from updated reprocessing and reinterpretation of 2D and 3D seismic data regarding the complicated geology of this area have not been confirmed by drilling. Total cost of the Inchiyaco well will be over $5.2 million, compared to an original estimate of $4.2 million. Ongoing activities in Colombia, including resumption of cash distributions, are under review now with the operator, Argosy Energy International."