Radial Acquires Drilling Equipment, Plans September Well
US oil company Radial Energy (OTC BB: RENG) has acquired drilling equipment for its 20%-owned block 100 in Peru, the company said in a statement.
The drilling equipment will be shipped on August 2 and will arrive roughly three weeks later, with the first well scheduled for drilling in September, the statement said.
Radial owns 67% percent of all equipment purchased and may elect to utilize the equipment on subsequent opportunities in the region.
The company will invest US$1.65mn in drilling the first well and then decide whether to drill a second well with an expected investment of US$1.65mn that would include storage, pipeline and infrastructure, BNamericas previously reported.
Block 100 is in the Ucayali basin and has the potential to produce up to 20 million barrels of oil. Tests indicate that initial production rates on the block will be 200-800 barrels a day on each well with the potential for 41 well locations.
The company will earn its stake through a US$900,000 investment commitment to Peruvian partners Compania Consultora de Petroleo (CCP) and Ziegler Peru. CCP was awarded a concession for the block in March 2004 and has a 30% farm-out arrangement with Zeigler.
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