Maurel & Prom has confirmed a significant discovery, through its subsidiary Hocol the operator holding 36.67% equity on the San Jacinto/Rio Paez permit. The La Canada Norte-1 (LCN-1 ST) exploration well in upper Magdalena 250 km southwest of Bogota and close to the production field of La Hocha (Hocol, 100%), stopped at 1,006 m after passing through 6 impregnated levels in the Monserrate and Caballos formations.
Three intervals of the Caballos formation were tested and revealed an aggregate output of 700 b/d of oil at 33-34degrees API and the Monserrate formation was tested and revealed a flow of 200 b/d of an oil at 17-18degrees API after fracturation.
Maurel & Prom considers that the proven & probable reserves should be some 41 million barrels at 100%. For Maurel & Prom, this would be 7 Mbbls of proven & probable reserves after royalties and Ecopetrol's stake rising to 50%, to be compared to Maurel & Prom's production in Colombia of 5.2Mbbls for 2006. The first estimate indicates a potential of the field's possible reserves of 83 Mbbls at 100%, to be validated through additional work.
Maurel & Prom's partners on this exploration permit are Cepsa 33.33% and Petrobras 30%.
Maurel & Prom and Hocol, its 100% Colombian subsidiary, are very happy with this new discovery, which emphasises the potential of the San Jacinto/Rio Paez permit operated by Hocol. The programme for assessing this discovery is being studied with the partners and a long period test has already been scheduled.