Petro Vista provided the following operations update on its core properties: Tartaruga block, Brazil and Morichito, La Maye and SSJN-5 blocks, Colombia.
Brazil - Tartaruga
The completion of the previously announced and successfully drilled 7-TTG-1DP-SES development well continues to be delayed due to the requirements to reissue production permits. All paperwork has been submitted and the local authorities have recently advised that new production permits should be issued in the next 30 days.
A rig has been contracted for the completion and all required materials are on site. Once the permits are issued, the completion should be accomplished within two weeks and the well can be brought immediately into production using the existing facilities.
The well exhibits at least 110 feet of net pay based on shows while drilling and petro-physical analysis. The well is updip from well (SES-107D) which is currently producing at rates between 280 and 360 bopd gross or about 100 bopd net to Petro Vista and has been in production for 9 years with initial rates of 1600 barrels of oil (42° API) per day.
A work-over of well SES-107D is being planned, which if successful, may significantly enhance its production levels. In addition, a heater treater unit is being installed at the site in order to reduce the cost of handling and transport of the anticipated higher volumes of the two production wells.
Production is currently being sold to Petrobras S.A. under a long term oil sales contract that provides for the sale of all production with the Tartaruga block at market rates. Initially, oil produced is held in storage tanks on the well site and then trucked to a nearby Petrobras central processing and gathering facility.
Petro Vista holds a 37.5% working interest (27.23% net revenue interest) in the concession with the remaining interest held by partners UP Petroleo Brasil Ltda (Operator) holding 37.5% and Petrobras Brasilia S.A. holding the remaining 25%.
Colombia – Morichito Block
Petro Vista and partners Golden Oil and Greenpower are currently finalizing development plans on the recent Morichito 5 discovery which previously tested oil in two zones out of three potential pay zones as evidenced by well logging and sidewall cores. Following the conclusion of the annual rainy season in the Llanos Basin at the end of September, Petro Vista will conduct initial civil works with pilot production of the lower most C7 sand planned for late Q4 2010. The second and third pay zones will be completed at a later date. The reserve report for the Morichito Block is being updated with these new successful results and will be released shortly.
Petro Vista is the Operator and holds a 50% interest with partners Golden Oil and Greenpower each holding an equal share in the remainder.
Colombia - La Maye Block
Unusual and extensive flooding in the Lower Magdalena Basin has necessitated the delay in the completion of the Noelia-1 well and final permitting for the second exploration well in our 4 well program. We continue to monitor the situation and are currently working with local Colombian authorities to receive our drilling permits.
Upon receipt of these permits, the Operator plans on mobilizing the nearby stacked drilling rig to the location of the second exploration well. This well will be targeting what appears, on seismic, to be an up dip and thickened section of the same carbonate reef structures as drilled at the Noelia-1 well which had oil and gas shows. The second exploration well should take approximately 30 days to drill and complete, after which the rig will be moved to the Noelia-1 well for test and complete this well.
Petro Vista holds a 25% interest with partners New Horizon (Operator – 50%) and PetroDorado (25%) holding the remainder.
Colombia – SSJN-5 Block
The joint venture has recently completed a program of reprocessing of the existing 2D seismic data set. Based upon encouraging results, the Operator has decided to acquire a 500 sq km 3D survey over the highest potential prospect, La Mocha Consuelo located in the southeastern portion of the block.
The La Mocha structure previously produced gas up to 200mcfg/month in shallow reservoirs and could have deeper oil targets. All environmental permits for the new 3D seismic program have now been received and the survey is expected to commence in late Q4 2010 with completion expected by May 2011.
Petro Vista's share of the costs of this 3D seismic program, are being paid for by Petroamerica Oil Corp. as part of its farm-in obligations to earn a 25% interest in this block. The drilling of the first exploration well on the block will be based on the results of the 3D seismic program and is expected to occur late in 2011.
Petro Vista holds a 25% interest in the block with partners SK Energy (50% - Operator) and Petro America (25%).
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