Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

October 02, 2013 06:00 ET

Suroco Energy Inc. Provides Update of Suroriente Block Activity

CALGARY, ALBERTA--(Marketwired - Oct. 2, 2013) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased to announce the resumption of normal production operations in the Suroriente Block and the continuation of the 2013 drilling program. The drilling rig under contract for Suroriente development is currently moving to the Quinde-2 appraisal well.

Suroriente Block Operational Update

Production Update

The removal of widespread road blockages in Colombia, that had recently disrupted normal field operations (see the Corporation's press release dated August 27, 2013), has allowed production operations to resume. After resumption of normal operations, gross production from the Suroriente Block has averaged 15,178 barrels of oil per day (2,210 barrels of oil per day net to the Corporation after royalties).

The production disruption has resulted in lower production levels than expected during August and September. Consequently, due to the loss of almost one month of production, the Corporation's average production for the third quarter of 2013 was 1,378 barrels of oil per day net to the Corporation after royalties. In comparison, production during the uninterrupted second quarter of 2013 was 1,670 barrels of oil per day net to the Corporation after royalties.

2013 Drilling Program Update

Completion operations with the drilling rig resumed at the Pinuna-7 well on September 14 and the well is now equipped to be tested to the Pinuna facility. Testing operations are expected to commence in the near future. The drilling rig is currently being moved to the Quinde-1 multi-well pad to commence drilling the Quinde-2 development location in mid-October. This well will evaluate Villeta sand oil potential to the north of the Quinde-1 well. Success at the Quinde-2 location may result in additional appraisal locations being directionally drilled from the Quinde-1 pad.

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.

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, 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, 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 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.

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