Pacific Stratus Says More Production Testing Needed at La Creciente-2

Pacific Stratus Energy says that during the production tests at the La Creciente-2 (LCA-2) well pressures of 1,700 PSI were recorded at the wellhead. Pressures recorded at the reservoir level at the top of the Cienaga de Oro Formation were 6,640 PSI, about 200 PSI lower than those encountered at the corresponding interval at the LCA-1. During the tests the intervals between 11,324 and 11,365 feet produced gas that was flared at the surface with flames measuring over 4 meters.

Due to operational problems resulting from the inability to isolate the water influx from the lower portion of the well, where the water-gas contact was defined, the results of these tests are still inconclusive and further work will be necessary to prevent the water contamination. The company is planning to execute a Production Logging Test and may fracture some intervals to increase the productivity of the well. The Saxon 126 Rig used to drill LCA-2 will be overhauled and moved to spud the first exploratory well at Prospect "D" LCD-1.

Drilling at LCA-3 has reached a depth of 10,511 feet and the company expects to reach the top of the Cienaga de Oro Formation at an estimated depth of 11,933 feet next week.

The company also announced that all early production facilities for Prospect A at the La Creciente Block have been completed.

Pacific Stratus Energy is a Canadian-based oil and gas company that initiated operations in 2004. The company is focused on identifying attractive opportunities primarily within the upstream Sub Andean basins. Pacific Stratus has a current net production of 1,900 barrels of oil per day, with working interests in the Caguan, Dindal, Rio Seco, Puli B, La Creciente, Moriche, Guama and Arauca blocks in Colombia and blocks 135, 137 and 138 in Peru. The company has offices in Toronto, Caracas and Bogota.