Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

April 30, 2012 06:00 ET

Suroco Announces the Cohembi-5 Appraisal Well on Production

CALGARY, ALBERTA--(Marketwire - April 30, 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 placed on production.

Mr. Alastair Hill, the Corporation's President and Chief Executive Officer commented, "The Cohembi-5 results are in line with our expectations and demonstrate nicely the continuity of this very high quality reservoir which supports the feasibility of our planned water injection project to significantly increase the amount of oil we can recover from this oilfield. From a regulatory and engineering design perspective, the project is on track to have water injected by early 2013. Ultimately, with a successful waterflood, the Cohembi field has the potential to become one of the larger oilfields in the Putumayo Basin".

Cohembi-5 Well

The Cohembi-5 well commenced production into the Cohembi oil facility with a variable speed electric submersible pump at 14:00 hours on April 23, 2012. Over the first 90 hours, the average production rate was 1,177 barrels of oil per day (171 barrels of oil per day net to the Corporation after royalty) at relatively low pump speeds with no water production. The well is now permanently on production, but will be temporarily shut in for a two or three day period in early May 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-7 Well

The Cohembi-7 well commenced drilling on April 28, 2012 and 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 focus on appraising the north and central areas of the Cohembi field, where civil works will allow the option of drilling up to five wells. The remainder of the 2012 program will then focus on delineating the southern extent of the Cohembi field from the planned Cohembi-6 multi-well surface pad.

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 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