Benchmark Starts Well Enhancement Project in Colombia

Benchmark Energy Corp. reports that it has entered into a Memorandum of Understanding (MOU) with Ecopetrol S.A. whereby Benchmark will undertake a pilot project on up to five wells in three fields operated by Ecopetrol in the Republic of Colombia, using its propriety well-performance enhancement technology.

Benchmark secured the preferential right for the technology for Colombia through a previously-announced Cooperation Agreement with Dominion Oil Corporation.

Under the terms of the MOU, Benchmark will cover 100% of the cost of the pilot project, which will involve two wells within the Sardinata Field, two wells within the Petrolea Field. The MOU includes an option to have either a second zone in one of the wells performed on or a fifth well enhanced utilizing the technology, in the Sardinata Field, Petrolea Fields or Tibz Field.

The fields are located in the Catatumbo basin in northeastern Colombia. The Sardinata Field has been producing since 1950 and currently produces 300 barrels of oil per day (bo/d), the Petrolea Field has been producing since 1933 and is currently producing 1,200 bo/d, and the Tibz Field is currently producing an estimated 1,800 bo/d.

The pilot project for all of the wells is due to be completed within the next 45 days. Upon completion of the pilot project, and assuming Ecopetrol is satisfied with the results of the pilot project, Benchmark will attempt to negotiate a farm-in agreement with Ecopetrol on one or more of the fields involved in the pilot project.