Quetzal Starts Drilling at Llanos Basin Well
Brownstone has been advised by the operator that they have commenced drilling the Mani #1 well on the Llanos 27 Block in the Llanos Basin of Colombia on October 21, 2011. The well is being drilled with the Saxon 132 1,500 HP rig and has a planned total depth of 10,850 feet and drilling is expected to take 45 days. The well is programmed to test the hydrocarbon potential of the Mirador and Une formations with secondary targets being the Carbonera and Gacheta formations. The gross budget for drilling the well is US $10 million and the testing budget is US $4-5 million. The Company is paying 50% of this amount to earn a participating interest of 45.275% before payout and 34.25% after payout. NCT EG Energy Group Colombia is the official operator of the block before the ANH and Quetzal is acting as operator on behalf of NCT under a private participation agreement.
Canaguaro, Llanos Basin - Operational update
Brownstone has also been advised that the Canaguay #1 well was shut in on October 20, 2011 to conduct a down-hole clean out and to install a new submersible pump at a deeper well depth. The work-over and clean-up are expected to take approximately 10 days. Total cost of the work-over is budgeted to be $1 million, of which Brownstone will pay 25%.