Pacific Stratus Says Secondary Target in LC-1 Comes Up Dry

Pacific Stratus Energy

Pacific Stratus Energy has completed testing of the Porquero formation at its 100%-owned La Creciente-1 (LC-1) well in the Lower Magdalena Basin of Colombia and no commercial quantities of gas were encountered in the secondary target.

As previously announced, the primary target of the LC-1 well projected an all open flow production potential of up to 71.8 million standard cubic feet per day of gas for the Cienaga de Oro reservoir, which is expected to start production during the second quarter of 2007 upon completion of the connection of LC-1 to the nearby gas pipeline at an estimated cost of US$4.2 million.

In addition, the company has received the gas analysis from the previously-announced open hole production test from the Cienaga de Oro Formation. The gas from this interval is 97.6% methane with low quantities of nitrogen and carbon dioxide and no hydrogen sulfide.

Pacific Stratus intends to commence drilling of the LC-2 well early in 2007, targeting the top of the structure encountered previously. A third well, LC-3, is planned for the second quarter of 2007, to be drilled downdip from LC-1, in an attempt to define the water contact. In addition, the company intends to shoot 150 square kilometers of 3-D seismic over Prospect A in the first half of 2007.

Pacific Stratus Energy is a Canadian based oil and gas company that initiated operations in 2004 and has acquired a total land base that exceeds one million acres. The company is focused on identifying attractive opportunities primarily within the upstream Sub Andean basins. PSE has a current net production of 2,500 barrels of oil per day, with working interests in the Caguan, Dindal, Rio Seco, Puli B, Doima (currently under dispute), La Creciente and Moriche blocks in Colombia. The company has offices in Toronto, Caracas and Bogota.