Black Rock Oil & Gas Pleased with Arce 3 Results

Black Rock Oil & Gas says that first oil was produced from Arce 3 on August 26th. As of September 5th, the well had produced 228 barrels of oil and 271 barrels of water. Arce 3 currently is producing at rates of between 25 and 36 barrels of oil per day, using a beam pump with a stroke length of 102 inches and 2 strokes per minute. The oil has an API gravity of 13.5 degrees.

Arce 3 was drilled to a total depth of 2,936 feet and encountered the reservoir objective 80 feet higher than had been expected. Oil shows were recorded while drilling and from wireline logs from a depth of 2,600 feet in the Mugrosa Formation reservoir sandstones.

A pilot steam flood project, that could significantly increase flow rates, is being evaluated. Steam would be injected via Arce 1, while it is likely that Arce 2 would be a production well.

Black Rock has 50% equity in this project.