News
Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX VENTURE:CNE) (BVC:CNE.C) is pleased to provide an update of its development drilling program at its operated Rancho Hermoso Field located in the Llanos Basin of Colombia, which is operated under a contract with Ecopetrol, the state run oil company of Colombia. The Corporation has completed the drilling of the Rancho Hermoso 6 (“RH 6”) well, the first of five development wells planned for 2010.
The Corporation spud the RH 6 well on June 24, 2010, and completed drilling operations on July 20, 2010, reaching a total depth of 10,780 feet (“ft”) measured depth (9,933 ft true vertical depth) without operational incident. The well is located in the southern part of the field, approximately 1,800 ft to the northeast of the RH 5 well, which was drilled in December 2009 and tested 8,428 barrels of oil per day (“bopd”) of light oil under naturally flowing conditions from the Guadalupe and Barco - Los Cuervos reservoirs. The RH 6 well encountered a total of 115 ft True Vertical Depth (“TVD”) of net oil pay in 5 different reservoirs, which is significantly greater than the 40 ft of net oil pay encountered at the RH 5 well located down dip on the structure.
Charle Gamba, President and CEO of Canacol, stated “We are very pleased with the results of the RH 6 well, the first of 5 development wells we plan to drill at Rancho Hermoso in 2010. The 115 feet of net oil pay encountered makes it the best well drilled in the 26 year history of the field, and bodes very well for the remainder of the drilling program we have planned for this year at Rancho Hermoso in order to achieve our production targets for year end.
RH 6 Results and Forward Plans
The Carbonera 7 (“C 7”) reservoir was encountered at 8,555 ft TVD and contains 5 ft of net oil pay with an average porosity of 18%. The C 7 is present in all 5 offsetting wells, but is currently not productive within the field, representing potential future upside. The Mirador reservoir was encountered at 8,910 ft TVD and contains 11 feet of net oil pay with an average porosity of 22%. The Barco - Los Cuervos reservoir was encountered at 8,956 ft TVD and contains 33 ft of net oil pay with an average porosity of 21%. The Barco – Los Cuervos reservoir in the nearby RH 5 well contains thinner net pay (9 ft) of identical reservoir quality and was flow tested at a rate of 4,434 bopd of 36 degree API light oil under naturally flowing conditions. A similar flow rate is anticipated from this reservoir in the RH 6 well. The Guadalupe reservoir was encountered at 9,036 ft TVD and contains 18 ft of net oil pay with an average porosity of 19%. The Guadalupe reservoir in the nearby RH 5 well also contains similar net oil pay to that encountered in the RH 6 well and was flow tested at a rate of 3,994 bopd of 33o API light oil under naturally flowing conditions, and a similar flow rate is anticipated from this reservoir in the RH 6 well. The Ubaque reservoir was encountered at 9,708 ft TVD and contains 48 ft of net oil pay with an average porosity of 24%. The Ubaque at the nearest offset well, RH 4, drilled in 2007, flow tested at a rate of approximately 2,000 bopd of 17 degree API medium gravity oil, and a similar rate is anticipated in the RH 6 well.
The drilling rig meanwhile will be mobilized immediately to the RH 7 drilling location within the northern part of the field to drill the second well in the program, with an anticipated spud date of mid August 2010.