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Dindal/Rio Seco Blocks
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In September, the El Segundo No. 2 confirmation well commenced drilling and reached a total depth of 6,820 feet in late October. The well penetrated the entire objective Cimarrona formation which consisted of 450 feet of oil saturated and highly fractured limestone and sandstone reservoir. Testing of the lower Cimarrona showed that interval of the well to be non-productive. Shallower tests were run over three intervals between 6,052 and 6,280 feet, and resulted in production rates as high as 6,154 BOPD. During these tests, pressure guages in El Segundo No.1 confirmed that the discovery was effectively a single reservoir with very high horizintal and vertcal permeability. Subsequent testing of the combined interval from 6,052 to 6,315 feet (263 feet) yielded production rates as high as 8,948 BOPD and 3.5 million cubic feet of natural gas per day. This rate was limited by production equipment and associated natural gas. The productivity index, calculated by consulting reservoir engineers, indicated that maximum production rates for the well could be in the range of 15,000 BOPD. The optimum producing rates for this well and future field wells will be determined by further drilling and testing results together with detailed reservoir studies.
The El Segundo No. 2 well has been placed
on long-term test production at rates between
2,000 and 3,000 BOPD to gather further
reservoir info rm ation. The initial oil production
will be trucked to a terminal at Vasconia
approximately 78 miles north west of Emerald
Mountain. During the year, a loading terminal
is planned for construction approximately
1 kilometer from the well site which will
allow for expanded trucking of the oil.
Following the success of the El Segundo No.
2 well, the Company is now accelerating its
studies of va rious pipeline options.
The next confirmation test well, the Tres Pasos No.1, will be drilled about 2 1/2 kilometers (1.5 miles) nort h west of the El S egundo No. 1 and 2 well site and some 400 to 600 feet downdip structurally to the disc overy well. Should a productive oil column be encountered in this well a significant volume of oil will be added to the reserve potential of the Emerald Mountain Prospect. Based on receipt of an environmental permit, drilling could commence on this test well in early May.
The Company continues to be very enthusiastic about this discovery and its potential. Results from the fi rst two wells indicate recoverable reserve potential up to 1 billion barrels of oil or greater.
The general area in which this project is located has been undergoing exploration since the 1940's and since then the industry has discovered some 60 oil fields with recoverable oil reserves of more than 1.5 billion barrels.
The new Cusiana - Cupiagua field complex , which was discove red by BP, Triton and Total in 1988, is located about 60 kilometers west of the Tapir Block and contains 2 - 4 billion barrels of oil and over 5 trillion cubic feet of natural gas.
Extensive seismic data is available within the Tapir Block which was supplemented by an additional seismic p rogram carried out in 1996 by the Company and its partners Heritage Colombia Inc. , Mohave Oil & Gas Corp., Do real Energy Corp. and Ampolex Colombia Inc. (now Mobil Oil). Based on the result of this program the partnersplan to drill the Mateguafa Prospect in 1997, fo l l owing receipt of the necessary environmental permit. Drilling operations will likely commence in December 1997, or early 1998. Prospect reserves in this area , defined by seismic, range between 5 - 20 million barrels; however, there are several stratigraphic leads on which prospects may be ultimately developed with much larger potential.
 El Segundo No. 1 Wellhead |
 El Segundo No. 1 Well Site |