Suroco Energy Inc.

Suroco Energy Inc.

March 01, 2010 06:00 ET

Suroco Energy Inc. Announces Production Performance From First Development Well; Commences Drilling Second Development Well and Enters Next Phase in Putumayo Exploration Block in Colombia

CALGARY, ALBERTA--(Marketwire - March 1, 2010) -


Suroco Energy Inc. (TSX VENTURE:SRN) (the "Corporation") is pleased to announce that the Pinuna 2 well, which is the second well in the Suroriente Block development drilling program commenced drilling on February 26.

Pinuna 2 Well: The Pinuna 2 well is being drilled with San Antonio rig SAI 15, which is the same rig that was used to drill the Pinuna 5 well. The well is targeting the Villeta 'T' and Lower 'U' reservoirs and will be drilled to a total depth of 2,983 m. The well is being directionally drilled from the Pinuna 1 surface location, with a bottom hole location approximately 350 m. from the Pinuna 1 vertical well which is currently producing at 1,550 bbls/day (226 bbls/day net to the Corporation after royalty). The well is being drilled to maximize the recovery of reserves in a four-way dip closed feature which is partially separated from the Pinuna 1 feature.

Pinuna 5 Well: Since commencing production on February 11th, the Pinuna 5 development well has averaged 1,944 barrels per day (283 bbls/day net to the Corporation after royalty) with no pressure depletion and no significant water production. The initial production behavior of Pinuna 5, which is capable of flowing at approximately 1,400 bbls/day in natural flow without pump, indicates that this well is capable of higher sustained rates.

The overall Suroriente Block production rate, since the Pinuna 5 well commenced production, has averaged 4,670 bbls/day (680 bbls/day net to the Corporation after royalty) and is currently constrained whilst additional storage and trucking facilities are being put in place. The additional facilities are expected to be in place in April, when the Pinuna 2 well is anticipated to come on stream and adding to overall production rates.

2010 Development Drilling Program: The Corporation is re-evaluating its planned 2010 drilling program with a view to locating a rig to drill an offset well to the new Lower 'U' pool discovered by the Pinuna 5 well, which did not have any reserves assigned to the Lower 'U' reservoir at this location. In addition this Lower 'U' pool development, the Corporation is planning to drill at least three more development wells in the Pinuna-Quillacinga 'T' sand pool and in the Cohembi 'N' sand pool during 2010.

The Corporation expects that its December 31, 2009 reserves booking will reflect some part of those reserves discovered in the Pinuna 5 well.

Alea 1947C Block: The newly acquired seismic data in the Alea 1947C block has now been evaluated and the Corporation, along with its partner in the Block, have made the decision to proceed with the second exploration phase. A large, well defined exploration prospect has been identified in the block which is on trend with the producing Platanillo oil pool in the Putumayo Basin. The second phase requires one exploration well to be drilled to a total depth of approximately 8,000 feet.

The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia and Western Canada. The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.

Forward Looking Statements

Certain information regarding the Corporation contained herein may constitute forward looking statements within the meaning of applicable securities laws. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of facts. Although the Corporation believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will be realized. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Corporation's forward looking statements are expressly qualified in their entirety by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Suroco Energy Inc.
    Alastair Hill
    President and Chief Executive Officer
    (403) 232-6784
    Suroco Energy Inc.
    Travis Doupe
    VP Finance and Chief Financial Officer
    (403) 232-6784
    (403) 232-6747 (FAX)