Global Energy Development PLC, the AIM listed Latin America focused petroleum exploration and production company (LSE-AIM: "GED"), which operates in Colombia through its wholly-owned subsidiary Harken de Colombia Limited, is pleased to announce two further successful test results for the Tilodiran 3 well within the Colombian Rio Verde contract. These results confirm four productive formations in the Tilodiran 3 well and the overall Tilodiran field.
The Tilodiran 3 well was drilled directionally to a total depth of 13,200 feet and a conventional drill stem test ("DST") was performed in the Mirador formation. The interval was perforated from 11,652 to 11,662 feet resulting in a stabilized natural flow rate of 105 barrels of oil per day ("bopd") of 21 degrees API gravity, with a water cut of 0.5% on a choke of 18/64" and a flowing wellhead pressure of 21 psi. The results of the test conclusively demonstrate the existence of a previously unrecognized oil bearing reservoir in the Mirador formation in the Tilodiran field. The observed flow rate is less than has been observed in Mirador reservoirs with similar log-derived petrophysical properties in the Llanos basin. Therefore, management anticipates that allowing the formation to produce at higher pressure differentials on pump for an extended time period may result in more typical production rates for this reservoir.
The Company next performed a combined test of the Middle/Upper Gacheta formation, from perforations at 12,672 to 12,680 feet and 12,690 to 12,694 feet, and the Lower Gacheta formation, from perforations at 12,744 to 12,748 feet and 12,806 to 12,814 feet. This resulted in a stabilized natural flow rate of 480 bopd of 16.9 degrees API gravity on a choke of 28/64", a gas/oil ratio ("GOR") of 280 scf per barrel and a water cut of 2%, which analyses as completion fluid and is expected to further reduce as the well continues to clean up. A surfactant stimulation had been performed on both the intervals. However, the improvement in rate indicates the treatment was not effective in stimulating the Middle/Upper Gacheta interval, which is currently producing 518 bopd on pump in the Tilodiran 2 well. Consequently, this interval has been isolated and a stimulation treatment will be performed over the next few days. The Middle/Upper Gacheta tested at a natural flow rate of 120 bopd in the Tilodiran 2 well, comparable to the Tilodiran 3 test, and when this well was completed with an electric submersible pump the rate increased to 814 bopd.
The previously tested Ubaque and Lower Gacheta formations in the Tilodiran 3 well produced at stabilized natural flow rates of 322 bopd and 400 bopd respectively.
At the conclusion of the testing of the Tilodiran 3 well, the Company will analyse all the available flow and pressure data to determine the optimum completion to maximize production rates and reserve recovery. An electric submersible pump will be installed in the well to enhance the production.
Information available so far from the drilling of the Tilodiran 3 well and drainage area estimates from the Tilodiran 2 well indicates, in the management's opinion, that the Tilodiran field is larger than previously mapped and that further development wells could be drilled. A 3D seismic program is currently being designed to better image the extended flanks of the field and pick drilling locations.