Black Rock Oil & Gas Spuds Arce 3 Appraisal Well in Colombia

Black Rock Oil & Gas reports that the Arce 3 appraisal well, located in the Middle Magdalena Basin, Colombia, commenced drilling on July 19, 2005. Arce 3 is being drilled about 300 meters to the south of the Arce 2 appraisal well which produced 13 degree API oil at rates up to 60 barrels per day on pump without steam injection.

The Arce reservoir is located in basal Tertiary sandstones. Gross recoverable reserves at Arce currently are estimated at around 5 million barrels of oil.

The well will be drilled to a depth of circa 3,000 feet, which is expected to take 10 days. If drilling proves successful, a workover rig will be mobilized to test the well. Following analysis of the initial testing results, a decision on a possible steam flood program to enhance flow rates will be made.

The well is operated by Kappa Energy Columbia Ltd. Kappa and Black Rock each have 50% equity in this project.