The Lapa-1 exploration well is the second well to be drilled in the San Antonio Block and is located on a structural closure defined on 3D seismic. The well has multiple reservoir targets including the Carbonera, Mirador, and Une Formations. The Corporation holds a 28% economic interest in the San Antonio Block.

Operational Update

Production from the Suroriente Block in the Putumayo Basin, where the Corporation holds a 15.8% working interest, has averaged 6,529 barrels of oil per day (951 barrels of oil per day net after royalty) since the Cohembi-2 workover was completed on February 3, 2012. The Cohembi-2 well was down for a total of 21 days, whilst remedial work was completed.

Production from the Suroriente Block is currently shipped through two pipeline systems, one to the Pacific port of Tumaco and the other to the Caribbean port of Covenas. A new oil sales agreement with Ecopetrol became effective on December 1, 2011. Since that time three cargoes were sold in December and January. The received price from these oil sales has varied between US$99 to US$105/bbl.

Average production from the Suroriente Block for the fourth quarter of 2011 was 5,754 barrels per day (838 barrels per day net to the Corporation after royalty). During December 2011 operations in the Suroriente block were temporarily suspended due to civil demonstrations and illegal road transport blockages which resulted in approximately 11 days of lost production.

Drilling operations at the Cohembi oilfield in the Suroriente Block, where the Corporation expects to drill approximately seven wells during 2012, are expected to resume in the near future after civil works to the existing Cohembi-3 well pad are completed to allow multiple deviated wells to be drilled from this surface pad. The next appraisal well, Cohembi-5, is planned to test the reservoir extent approximately 1 kilometer to the southwest of the existing producing area. In addition, two new multi-well pads will be constructed in order to enable the subsequent appraisal wells to evaluate the possible extension of the oilfield both to the northwest and further to the south of the existing producing area.

The Cohembi oilfield development study, which was awarded to DeGolyer & MacNaughton in mid 2011 will be completed during February 2012. The sub-surface model and reservoir simulation results support and confirm the objective of extending the appraisal drilling to the south of the existing producing area and has provided the conceptual basis for a waterflood development to maximize recovery in the Cohembi oilfield.

Tags: Suroco Energy