Petrolifera Petroleum Limited has announced that the RN.PM a-1013 well on its 100 percent-owned Puesto Morales/Rinconada concession in the Neuqué'e9n Basin onshore Argentina is an indicated crude oil discovery.
During drilling, the 1013 well, which is located approximately one-half mile southeast of the 1002 discovery well, penetrated a thick continuous hydrocarbon-bearing Sierras Blancas zone similar to that encountered in the 1002 and 1012 wells. Based on log analysis, the zone exhibits excellent porosity and the well is scheduled to be cased and will be tested and completed for production during the next several days, as soon as the service rig under contract completes a procedure at the 1001 La Ramona location situated west of the current region of activity. The 1013 well also encountered several hydrocarbon-bearing zones in the Loma Montosa or Quintuco Formation which will be evaluated at a later date. Cores to be evaluated over the next several days were also taken in the Quintuco and Sierras Blancas Formations.
The drilling rig will now be moved to the RN.PM a-1015 location, a southerly stepout to the 1010 well.
Petrolifera also advises that total production at Puesto Morales reached 8,992 bbl/d of light gravity crude oil on August 28, 2006. Included in that total was production of 2,376 bbl/d with no water through a 16 millimeter choke from the recently-completed 1012 well. Water cuts at the six 2005/2006 wells which are productive in either or both the Sierras Blancas and Punta Rosada Formations range between zero percent at 1012 to one percent at 1002 and are generally closer the lower limit.
Field operations to install new facilities, including a pipeline to connect to a regional carrier to transport crude oil to available markets in and around Buenos Aires, Argentina remain on track for an October startup at this writing. This should contribute to lower overall operating costs, already very low at under $5.00 per barrel despite trucking costs presently being incurred to move oil to offsite treatment facilities. Additionally, the company anticipates being able to retain the flexibility of trucking crude oil to supplement deliveries through its new pipeline, should productive capacity continue to expand with successful drilling.
