Alange Energy updated on its ongoing exploration program for 2010 in the Cubiro block. The program is targeting a combined resource base of 34 million barrels of oil. The budgeted and fully capitalized 4-well exploration program started with the recently announced discovery in the Barranquero-1 well, which is currently producing 700 barrels per day of 28 degrees API with 3% BS&W on natural flow. The 250-square kilometer 3D seismic results and the structural mapping confirmed a number of clearly identified, high prospectivity well locations.
As part of the exploration program, the Company announced today that it had spud the Cubiro Este-1 exploration well on March 18, 2010, which is currently drilling ahead of 4,650 feet to a total depth of 6,185 feet. In addition, the Company today spud the Copa-1 exploration well that will be drilled to a total depth of 5,985 feet. Management estimates that these two wells will target resources of 4.8 million barrels and 4.4 million barrels, respectively, in the Carbonera C-5 and C-7 formations. These wells will be completed and tested approximately 30 days from spud date.
The Company also plans to spud the Criollo-1 exploration well on April 15, 2010 that will be drilled to a total depth of 6,210 feet, targeting 3.2 million barrels of resources in the Carbonera C-5 and C-7 formations. Subsequent to this activity, the Company will drill an appraisal well to evaluate the extension of the discovery made on the Barranquero field in February 2010.
The Company's capital plan for 2010, which includes US $24 million for the development of the Cubiro block, comprises drilling the aforementioned four exploration wells and an additional seven appraisal wells during 2010, for which regulatory approval is currently in process and on schedule for production tie-in. The program also includes two well workovers and US $2.1 million for the acquisition of 68.7 square kilometers of 3D seismic work, currently being shot, and would target combined resources of 7.3 million barrels of oil in the Turpial, Azulejo and Careto Sur prospects.
Mr. Luis E. Giusti, the Company's Chief Executive Officer, commented, "We are looking forward to embarking on the next stage of the Cubiro exploration program. Our focus on this block has given us a greater understanding of its exploration potential. We will soon be announcing the progress of the newly spudded wells."
To date, the Company has announced exploration/appraisal success on four wells in the Cubiro block in the last four months, namely Careto-5, Careto-6, Careto-8, and Barranquero.
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