Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

May 24, 2011 06:00 ET

Suroco Energy Inc. Announces Cohembi-3 Well on Production at 1852 Barrels Per Day

CALGARY, ALBERTA--(Marketwire - May 24, 2011) -

(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 second appraisal well of the Cohembi oilfield in the Suroriente Block in Colombia has been placed on production at approximately 1852 barrels per day. The Corporation holds a 15.8% working interest in the Suroriente Block.

Mr. Alastair Hill, the Corporation's President and Chief Executive Officer commented, "Cohembi-3 is the third successful well in our multi-well appraisal and development drilling program in the Pinuna and Cohembi fields and with the Cohembi-3 well now tied-in, the total Cohembi field production from the three producing wells is stabilizing at approximately 4580 barrels per day (approximately 667 barrels per day net to the Corporation after royalty). The initial appraisal drilling of Cohembi has been very successful with each successive well encountering thicker, better quality reservoir which has proven to be oil-bearing throughout with no evidence of an oil-water contact. The drilling program will now shift over to the Pinuna oil field where we expect to commence drilling the Pinuna-4 well in early June."

Cohembi-3 Well Results

The Cohembi-3 well commenced production on May 14, 2011 with a variable speed electric submersible pump, and from May 17 to May 22, 2011 produced at an average rate of approximately 1852 barrels of 18 API gravity oil per day (approximately 270 barrels of oil per day net to the Corporation after royalties) with no significant water production. The producing pressure and oil quality confirm that Cohembi-3, which offsets the Cohembi-1 well by approximately 1.0 kilometre, is producing from the same large Villeta N oil pool as the Cohembi-1 and Cohembi-2 wells. Oil production from the Cohembi N oil field averaged approximately 4580 barrels per day (approximately 667 barrels of oil per day net to the Corporation after royalty) from May 17 to May 22, 2011, with no significant water observed in any of the three wells.

Cohembi Oil Field Development Planning

Delineation drilling of the Cohembi oilfield will continue in the second half of 2011, with the objective of determining the areal extent and geometry of the accumulation to allow finalization of the field development plan. The Corporation and its partner are together evaluating the feasibility of how the ultimate recovery might be improved by water injection. Part of that work involves analysis of the N sand core which was acquired in the Cohembi-2 well. The analysis results of this core indicates that the reservoir is very high quality, with average permeability of 3,500 millidarcies and average porosity of 25% for the 13 plug samples that were evaluated. Special core analysis designed to evaluate reservoir performance under water injection will commence in the near future.

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.

Further information about the Corporation can be found at the Corporation's website (www.suroco.com), including an updated investor presentation, and under Suroco's profile on SEDAR at www.sedar.com. Readers should note that on February 1, 2011, Suroco filed its reports under section 2.1 of National Instrument 51-101, which can be found for viewing by electronic means under Suroco's profile on SEDAR at www.sedar.com).

Forward Looking Statements

This press release contains forward-looking statements relating to the operational and exploration activities for Suroco and evaluation of certain prospects in which the Corporation holds an interest 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; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; 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.

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