Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

April 12, 2012 08:00 ET

Suroco Announces the Cohembi-5 Appraisal Well Delineates High Quality Oil Reservoir

CALGARY, ALBERTA--(Marketwire - April 12, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased to announce that the Cohembi-5 appraisal well has been successfully drilled to total depth and has encountered high quality oil pay similar to the other three existing producing wells in the Cohembi oil field.

Mr. Alastair Hill, the Corporation's President and Chief Executive Officer commented, "The Cohembi-5 results demonstrate that we are on the right track in our appraisal drilling program at Cohembi. The information from this well, which intercepted the reservoir some 1.3 kilometers away from the Cohembi-3 well, fits with our geological model, which indicates a large volume of undeveloped reservoir exists to the south of our producing wells. Our next 2012 drilling locations will focus on delineating the northern extent of the field while a new multi-well pad (Cohembi-6) is constructed to continue drilling appraisal wells further to the south".

The Cohembi-5 well was spudded on March 11, 2012 and drilled directionally to the south-west from the Cohembi-3 surface pad and approximately 1.3 kilometers from the nearest bottomhole well location. The well reached a total depth of 9,447 feet (8,638 feet true vertical depth) on April 8, 2012. Core and open hole logs indicate 23 feet of high quality net oil pay that is similar to that encountered in the two previous Cohembi development wells drilled during 2011. These results have increased the proven vertical oil column in the Cohembi field by 22 feet to a total of 77 feet, with no water contact encountered to date. The Cohembi-5 well is expected to be cased, completed, and placed on production within the next two weeks.

Following the completion of Cohembi-5, the drilling rig will spud the Cohembi-7 well from the same surface pad. This well will delineate the pool in the north-eastern direction, maintaining an inter-well spacing of approximately 1,000 metres from existing wells. The drilling rig will then move to the Cohembi-4 multi-well surface pad to appraise the north-west extent of the pool. The remainder of the 2012 program will then focus on delineating the southern extent of the field from the planned Cohembi-6 multi-well surface pad.

Further details explaining the Corporation's activities and 2012 drilling program are contained in a presentation on the Corporation's website at www.suroco.com.

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, 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)
    www.suroco.com