Suroco Energy Inc.

Suroco Energy Inc.

June 14, 2012 06:00 ET

Suroco Announces the Cohembi-7 Appraisal Well on Production at 1,322 Barrels of Oil Per Day and Commences Drilling Cohembi-4 Well

CALGARY, ALBERTA--(Marketwire - June 14, 2012) -


Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased to announce that the Cohembi-7 appraisal well has been successfully placed on production and drilling has commenced at the Cohembi-4 multi-well pad.

Mr. Alastair Hill, the Corporation's President and Chief Executive Officer commented, "The excellent initial production from the Cohembi-7 well, which has produced up to 1,485 barrels of oil per day (216 barrels of oil per day net to the Corporation after royalty) as the pump speed has been increased to its normal operating capacity, attest to the very good reservoir quality encountered in this area of the field. The next two or possibly three wells will be drilled in the northwest area of the field from the Cohembi-4 pad, with one of these wells targeting a significant stepout to evaluate the potential for the field to extend beyond the area currently mapped on the 3D seismic".

Cohembi-7 Well

The Cohembi-7 well commenced production into the Cohembi oil facility with a variable speed electric submersible pump on May 26, 2012. Over 7 days, the average production rate was 1,322 barrels of oil per day (192 barrels of oil per day net to the Corporation after royalty) at relatively low pump speeds with no water production. The well is now tied in to production lines, but temporarily shut in for a pressure build up to evaluate reservoir properties in this area of the field. Depending on the results of the flow and build-up tests, the pump speed may be increased further.

Cohembi-4 Multi-Well Pad

The Cohembi-4 multi-well pad can accommodate up to three drilling locations, of which Cohembi-4 is the first well. Drilling of this well commenced on June 13, 2012 and is expected to take approximately twenty days to drill and ten days to complete and tie-in. The wells being drilled from this pad will delineate the pool in the northwesterly direction, maintaining an inter-well spacing of approximately 1,000 metres from existing wells. The Cohembi-11 well drilled from this pad will test an extension of the pool beyond the current mapped area of the 3D data, potentially extending the pool 1.0 kilometre northwest from the edge of the 3D area and 2.4 kilometres from the closest well control, which is Cohembi-3.

Future Appraisal Drilling Plans

Following the drilling from the Cohembi-4 pad, the rig will drill two wells from the existing Cohembi-2 pad. These wells will target the south-central area of the field, offsetting the Cohembi-2 well, which continues to be one of the best producers in the entire field. Later in the year, the rig will move further to the south to appraise the southern area of the field from the Cohembi-6 well pad. With the continuing drilling program, operational and cost efficiencies are being recognized and it is anticipated that up to seven wells may be drilled this year, instead of the six originally planned. An additional 5,000 barrel storage tank has also been installed at the Cohembi facility to handle incremental production from the new wells.

Further details explaining the Corporation's activities in the Cohembi field and its 2012 drilling program are contained in a presentation on the Corporation's website at

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. The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.

Forward-Looking Statements

This press release contains forward-looking statements relating to the operational and exploration activities for Suroco, the evaluation of certain prospects in which the Corporation holds an interest, drilling locations, estimated number of drilling locations, expected capital program (including its allocation), production growth, and other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; the need to obtain required approvals from regulatory authorities; product supply and demand; market competition; political and economic conditions in the country in which the Corporation operates; and other factors, many of which are beyond the control of the Corporation. You can find an additional discussion of those assumptions, risks and uncertainties in Suroco's Canadian securities filings.

Readers should also note that even if the 2012 drilling program as proposed by Suroco is successful, there are many factors that could result in production levels being less than anticipated or targeted, including without limitation, greater than anticipated declines in existing production due to poor reservoir performance, mechanical failures or inability to access production facilities, among other factors.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, Suroco disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Suroco undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

Neither TSX Venture Exchange nor its Regulation Services 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
    (403) 232-6747 (FAX)

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