CALGARY, ALBERTA--(Marketwired - Aug. 27, 2013) -
(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)
Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") announces it has completed the drilling of the Pinuna-7 stepout well with positive oil indications. The Corporation also announces that drilling and production operations at its Suroriente Block in the Putumayo Basin have been temporarily suspended due to road blockages associated with strike actions which are occurring in several regions of Colombia.
Pinuna-7 Stepout Well
The Pinuna-7 stepout well has reached total measured depth of 10,376 feet and has been cased pending testing and completion operations. The logs and samples gathered in the well indicate approximately ten feet of net oil pay in sandstones of the Villeta Formation and the rig operations were suspended after the casing was run. The well will be production tested once drilling operations recommence.
Suroriente Block Operational Update
In response to the existence of road blockages that have been erected by local inhabitants in several communities in Putumayo and elsewhere in Colombia, drilling and production operations have been temporarily suspended in the Suroriente Block. The blockages first began occurring on August 19th and subsequently have made it impossible to carry on normal drilling and production operations involving trucking and in maintaining normal supply of equipment, fuel and personnel to the rig and production facilities. The widespread road blockages which have occurred in various regions in Colombia are in response to several factors, including rising fuel prices, a strong currency and declining commodity prices. By suspending the drilling and trucking operations, the Corporation is not exposed to significant ongoing standby costs.
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 an updated presentation to be available shortly on the Corporation's website. 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 Suroco, 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), 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 Suroco's Canadian securities filings.
Readers should also note that even if the 2013 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.
For further information please visit our website at www.suroco.com.
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.