Vintage Petroleum Makes Discovery in Ecuador
Vintage Petroleum's Hormiguero No. 4 well, in the Oriente basin of Ecuador, has been successfully drilled and tested in the targeted lower Napo "U" formation. The well is estimated to have the capacity to produce at a rate in excess of 10,000 barrels of oil per day. Extensive production and pressure tests support the estimated production capacity, although higher-volume lift equipment would be required to sustain this production rate. Total depth of the well was 11,980 feet, including a horizontal section of approximately 1,400 feet. The producing horizon within the Napo "U" sand has a vertical net pay of 42 feet. Production from the well will be marketed through the existing Sote pipeline or through the OCP pipeline upon its completion anticipated in mid-2003. Until completion of the OCP, the well is expected to be allowable-restricted.
Vintage has a 70 percent working interest in the well and is the operator. The Hormiguero No. 4 is the first of two horizontal wells planned on Block 17 this year to fulfill prior work obligations. The second well, Hormiguero No. 3, is currently drilling. Vintage's operations in Ecuador are currently being marketed for sale with proceeds from such sale targeted to contribute to the company's previously announced corporate debt reduction goals.