Seven Seas Announces Operational and Financial Update

Search Blogs that Mention this News Release
Click this link to view linked Bookmarking Services
Click this link to view linked Blogging Services
Seven Seas Announces Operational and Financial Update
    HOUSTON, Sept. 17 /PRNewswire-FirstCall/ -- Seven Seas Petroleum Inc.
(Amex: SEV) announced today that its Escuela 2 exploration well is currently
drilling at approximately 20,155 feet in the lower Cretaceous (Utica-
Caballeros) formation and is expected to reach total depth within 24 hours.
Electric logs have been run on the well to a depth of 19,933 feet and are
currently being evaluated.  After reaching total depth, additional logs and
wire line tests will be undertaken and evaluated.  Based upon the preliminary
log and sample analysis and natural gas shows, including heavier hydrocarbons
(C1 through C5), the Company believes the well should be production tested and
is presently evaluating how best to test the well.  Depending upon the method
and length of testing, it is estimated the costs will be between $1.5 and
$3.5 million.  To date, cumulative well costs have reached approximately
$21.1 million.  Testing costs will bring the total cost for the Escuela 2 to
between approximately $22.6 and $24.6 million.
    "We have the potential of a major discovery; however, it will require a
production test to determine the real potential of the Escuela 2 well and
possibly a second well to determine the full potential of the prospect,"
stated Robert A. Hefner, III, Chairman and Chief Executive Officer of Seven
Seas Petroleum, Inc.

    Operational Update
    Production from the Guaduas Oil Field averaged approximately 6,100 barrels
of oil per day (2,800 net to Seven Seas) during the month of August compared
to 6,700 barrels of oil per day (3,100 net to Seven Seas) during the month of
July.  As previously reported, the Company is attempting to optimize
production from existing wells through a workover program.  To date, the
Company has completed workover operations on three wells, the Tres Pasos 1-W,
El Segundo 1-N and the Tres Pasos 6-N.  These efforts have not yet increased
production.  The Company has also fracture treated the Tres Pasos 5-W.  The
results may not be known for several weeks and could potentially determine
whether the company proceeds with additional workovers.

    Colombian "War Tax"
    In August 2002, the newly elected Presidential administration in Colombia
imposed an emergency "war tax" of 1.2 percent on all in-country equity, as
calculated by Colombian tax authorities, to finance efforts to combat ongoing
guerilla activity.  Seven Seas current "war tax" liability is estimated to be
approximately $800,000, payable in four installments beginning at the end of
September 2002 and ending in June 2003.

    Rosablanca Association Contract
    Given continuing regional political uncertainty in the area covered by the
Rosablanca Association Contract, the additional costs to drill deeper on the
Escuela 2, and the unexpected "war tax", Seven Seas has decided to postpone
the drilling of the Santa Fe #1 well to test the Aguachica Prospect.  The
Company will consider potential farmout agreements.
    Seven Seas Petroleum Inc. is an independent oil and gas exploration and
production company operating in Colombia, South America.  The Company's
primary emphasis is on the development and production of the Guaduas Oil Field
and exploration of the Subthrust Dindal Prospect, both of which are located in
Colombia's prolific Magdalena Basin.

    Statements regarding anticipated oil and gas production and other oil and
gas operating activities, including the costs and timing of those activities,
are "forward looking statements" within the meaning of the Securities
Litigation Reform Act.  The statements involve risks that could significantly
impact Seven Seas Petroleum Inc.  These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services and government regulation and foreign political risks, as well as
other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.
SOURCE Seven Seas Petroleum Inc.
http://www.sevenseaspetro.com
Company News On-Call:
http://www.prnewswire.com/comp/123145.html
CONTACT:
Daniel Drum, Investor Relations of Seven Seas
Petroleum Inc., +1-713-622-8218