CALGARY, ALBERTA--(Marketwired - Oct. 29, 2013) -
Not for dissemination in the United States of America
Suroco Energy Inc. (TSX VENTURE:SRN) (the "Corporation") is pleased to announce that drilling of the first exploration well in the Putumayo 2 Block has commenced.
Alastair Hill, the Corporation's President and CEO commented, "We are very excited to have commenced drilling this large and well-defined exploration prospect which is located in the vicinity of several producing oilfields. We expect the Villeta reservoirs to be well developed at this location and in the event of success there are other similar-looking features, at least one of which could be tested from the same pad."
Canelo Sur 2 Exploration Well - Putumayo 2 Block
The Canelo Sur 2 well spudded on October 26 and will be drilled to a total depth of 10,300 feet with drilling operations expected to take approximately 45 days. This is the first well drilled on the Putumayo 2 Block and it is targeting multiple potential reservoir zones of the Villeta Formation in a large four-way dip closed structural feature that is well imaged on high quality 3D seismic. The well is being drilled on a surface pad from which up to three wells could be drilled in the event of success.
In July 2013, the Corporation acquired a 25% economic interest in the Putumayo 2 Block from PetroNova Inc.'s wholly owned subsidiary, PetroNova Colombia Inc. ("PetroNova"). The Corporation and PetroNova have made application to the Agencia Nacional de Hidrocarburos of Colombia ("ANH") for its approval of the conversion of the Corporation's 25% economic interest in the Putumayo 2 Block to a full 25% undivided working interest in the Putumayo 2 Block.
The Putumayo 2 Block is operated by PetroNova, who hold the remaining 75% interest. The Putumayo 2 Block was awarded by the ANH in 2008 and 3D seismic was acquired in 2011.
Drilling Update - Suroriente Block
In the Suroriente Block, the Quinde-2 well commenced drilling on October 14, 2013. The well has a planned total depth of 10,200 feet and is targeting multiple reservoir objectives in the Villeta Formation. Drilling is expected to take approximately 30 days. In the event of success at the Quinde-2 location, the drilling rig may be moved on the same surface pad to enable drilling of another Quinde appraisal well.
As previously disclosed in the Corporation's news release of August 27th 2013, The Pinuna-7 well reached total measured depth of 10,376 feet. A 13 foot interval was perforated and the well was equipped with an electrical submersible pump, however the pump could not be operated at the design rate due to a viscous fluid emulsion mixture of oil and completion fluid. Before attempting to recommence testing the wellbore will be cleaned out and displaced with oil which may enable the pump to operate normally. If this is not successful a workover rig may be required to remove and service the pumping equipment. This operation is anticipated to occur in the coming weeks once the appropriate equipment is sourced.
Production Update - Suroriente Block
For the first 27 days of October 2013, gross production from the Suroriente Block has averaged 13,686 barrels of oil per day (1,985 barrels of oil per day net after royalty). The Corporation expects that new water injection facilities at the Cohembi-6 well site will be operational in early November 2013. Upon completion of the new water injection facilities, the Cohembi-6 oil producer will be converted for water injection service, and will provide pressure maintenance to the southern portion of the Cohembi pool.
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. Further details of the Corporation's activities are contained in a presentation available on the Corporation's website (www.suroco.com). The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.
This press release contains forward-looking statements relating to the operational and exploration activities for the Corporation, the evaluation of certain prospects in which the Corporation holds an interest, estimated number of drilling locations, estimated timing of drilling of wells, expected capital program (including its allocation), timing of completion of capital projects, production growth, reserves growth, the ability of the Corporation to sell its crude volume 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, political and economic conditions in the country in which the Corporation operates; risks associated with oil and gas operations and future exploration activities; 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; the need to obtain required approvals from regulatory authorities; product supply and demand; market competition; 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 the Corporation's Canadian securities filings.
Readers should also note that even if the 2013 drilling program as proposed by the Corporation 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, the Corporation 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, the Corporation 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.