Amerisur Resources Plc ('Amerisur'), the oil and gas explorer and developer focused on South America, provides the following update on operations in Colombia.
Highlights
• Re-entry to Alea 1 successful - production and Long Term Testing to commence during October
• Platanillo 1 encounters transition zone and defines limits of field
• Platanillo 2 to be drilled shortly to further evaluate structure
The re-entry of the Alea-1 well has been completed without operational problems using the work over rig Pride 6. The well was flowed at a controlled rate of approximately 160 BOPD through a 1/4' choke to observe fluid properties (during initial testing of the well in 1988, flow rates in excess of 500 BOPD through a 9/16' choke were recorded). The crude oil observed at surface has an API gravity of approximately 32 degrees and zero water. The well has now been closed in again to conduct sampling and analysis for purposes of reservoir engineering and assessment of the reserves potential of the field.
The well is expected to return to production and begin Long Term Testing (when the full production potential of the well will be examined) following the mobilisation of the drilling rig Pride 17 to the Alea-1 location, as discussed below. For operational safety reasons recommencement of production will not take place until after the drilling rig Pride 17 has been installed on the location. This is expected to be complete within the next 15 days.
Oil production will be delivered to the Santana terminal, operated by Gran Tierra Energy Colombia for subsequent export.
Platanillo-1, the first new well in a 2 well programme, has been drilled to a total depth of 8,390ft. The reservoir section was encountered 55ft deeper at the Platanillo-1 location which is located approximately 2,200m from Alea-1, and analysis of electric logs indicates that the well might be close to the transition zone between the oil and water columns of the field. The well has therefore been temporarily plugged to allow the rig to be released to drill Platanillo-2. Platanillo-1 remains a potential candidate for a subsequent re-entry and sidetrack to evaluate reserves up-dip of the current reservoir entry point.
The drilling rig Pride 17 is currently being moved to the Alea-1 location. Platanillo-2 will be drilled directionally from that location, towards a culmination which is expected to be higher on the structure than Alea-1. The objective of this exploration well is to examine the potential for additional reserves in a separate reservoir, the upper 'U' sand and confirm the continuity of the lower 'U' reservoir. Platanillo-2 will be drilled to a depth of approximately 8,300ft over a period of around 30 days. Subsequent testing of the well will be performed using the existing facilities installed for Alea-1.
Amerisur Resources Plc holds a 25% working interest in this block under the Platanillo E&P Contract with the Colombian National Hydrocarbons Agency (ANH). Repsol YPF holds 35% and Ecopetrol S.A.(40%) is the operator.
Dr John Wardle, Amerisur's Chief Executive Officer commented:
'The initial data from Alea-1 are encouraging, and within the next few weeks we will be able to test the well to its full capacity. The results from
Platanillo-1 are also extremely important for the definition of the size of the field at Platanillo, since this firm knowledge allows us to make the best appraisal and development decisions in the future. With the addition of the information from Platanillo-2 we will have a very clear picture of the southern part of the field, which we can then proceed to evaluate through a Long Term Testing programme.
Giles Clarke, Amerisur's Chairman said:
'The re-entry of Alea 1 is a significant moment for Amerisur, marking the first oil production in our blocks. We look forward to updating shareholders as we make further progress in the region.'
