Petro Vista Energy has provided an update on its Colombia operations.
On March 17, 2009, the Company signed an agreement with Agencia Nacional de Hidrocarburos ("ANH") to acquire 100% interest in the VMM-13 Block (118,816 gross acres) located in the prolific Middle Magdalena Basin, Colombia. Petro Vista is the operator. The exploration phase is set for Q1 2010 which will consist of seismic and geological studies.
The Company is building a significant portfolio of production, development and exploration assets in Colombia. The Company now holds 4 blocks encompassing over 814,823 gross acres (441,156 net acres) in two of Colombia's key hydrocarbon basins. Almost twice the size of Texas, Colombia is a prime South American oil location bordered by Brazil, Ecuador, Peru, Venezuela, Panama, the Pacific Ocean and the Caribbean Sea. Ecopetrol estimates Colombia's potential reserves at 47 billion barrels of oil equivalent. A vast portion of the nation's territory has not yet been explored, which allows for large blocks and excellent fiscal terms with high potential resource opportunities in proven hydrocarbon areas.
On the Company's Morichito Block in the Llanos Basin of Colombia, two farmout agreements have been signed which provides for a cash reimbursement of past expenses, surplus cash for future expenses, as well as a full carry on three wells. Petro Vista remains operator of the project with a 35% interest. Drilling of the Morichito #1N prospect exploration well is planned for the first quarter with the second exploration well (Morichito #3) to follow once Morichito #1N is drilled. The Company has commenced the construction of several access roads, the build out of the drilling pads and has obtained all necessary permits. Both prospects were identified on newly re-processed 3D seismic and show well-defined structural closures typical of fields in the Llanos Basin. The Company will be targeting the Carbonera C7 and Mirador formations which have produced as high as 2,000 barrels of oil per day from nearby well analogs.
Testing of the previously drilled Morichito #2 well has been completed and was unfortunately water wet. This well was drilled based on 2D seismic in 2006 by a previous owner and initial DST tests at that time indicated the potential for production of up to 150 bopd of 23 to 24 degree API crude from two zones. However, based on current results the well will be abandoned as non-commercial.
Subsequent 3D seismic acquisition and recent reprocessing have identified several attractive exploration prospects, including Morichito #1N and #3, which occur updip to the Morichito #2 well and within larger determined aerial closures. The Zigma-2 rig is now being mobilized 4.1 kilometers northeast to the Morichito #1N site and is anticipated to reach the location in two weeks. Upon spudding, the Morichito #1N well is expected to reach target depth of 5,825 feet in approximately 18 days. Petro Vista will then mobilize the rig to the #3 well location.
Read B. Taylor, President and CEO commented, "While we are disappointed we did not test oil in the Upper Carbonera section in the Morichito #2 well, we look forward to our upcoming program in the more structurally favorable and larger closures of the Morichito #1N and #3 well locations. The oil recovered from the Mirador stratigraphic section at #2 although interesting and good quality is not commercial due to anticipated lower production rates and high capital requirements for water separation and associated logistics from this location. Once the oil price environment improves or nearby well production is established and the cost environment can be reduced with synergistic development programs along several fields in this trend these lower productive zones can be brought on."
Most Popular Articles
From the Career Center
Jobs that may interest you