CALGARY, ALBERTA--(Marketwired - March 14, 2014) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") announces that it has temporarily suspended operations at the Canelo Sur-2 exploratory well (the "Well") pending resolution of a community-related dispute in the region.
The Well has reached the programmed total depth of 9,970 feet, however a community-related disagreement has arisen that is preventing personnel and supplies from reaching the drilling site. The Corporation, along with the Operator, PetroNova Inc. and the drilling contractor are utilizing all available resources to maintain personnel safety and well security while working with community representatives and local authorities to identify and resolve the underlying motivation of the unrest, in order to be able to resume normal activities. Once operations recommence, a liner will be run in the Well which will facilitate the ability to acquire cased-hole logs such that a decision can be made regarding future testing operations. Pending further wireline log information, testing is initially planned for the Lower 'U' Sand of the Villeta Formation.
The Well was drilled to evaluate multiple reservoir targets in the Villeta Formation. The principal targets being the Lower 'U' and the 'T' Sands. Well log data and mud-gas log data acquired indicate a gross reservoir thickness of approximately 45 feet with fair quality oil shows and natural fluorescence over the Lower "U" Sand and a gross reservoir thickness of approximately 69 feet with poor oil shows over the "T" Sand. Due to adverse hole conditions, a porosity log was not acquired over both of the Lower 'U' and 'T' Sands, which has hampered the interpretation. The Villeta Upper 'U' Sand, over which a full suite of well logs was acquired, indicate the zone to be wet.
The Well is located in the PUT-2 Block (the "Block") located in Colombia's Putumayo Basin, a Block in which Suroco holds a 25% economic interest. Application has been made to the Agencia Nacional de Hidrocarburos of Colombia for its approval of the conversion of Suroco's 25% economic interest to a full 25% undivided working interest in the Block.
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.
Certain statements included in this press release constitute forward-looking statements under applicable securities legislation. These statements relate to future events or future performance of the Corporation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. Forward-looking statements or information in this press release include, but are not limited to, the operational and exploration activities for the Well (including testing), the evaluation of the Well, the resolution of community related disputes and issues, expected capital program (including its allocation), 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.
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. New factors emerge from time to time, and it is not possible for management of the Corporation to predict all of these factors and to assess in advance the impact of each such factor on the Corporation's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement or information. The forward-looking statements contained herein are expressly qualified by this cautionary statement. Moreover, neither the Corporation nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements.
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.