ISABELANA

 

Colombia

Amerisur Resources, the oil and gas producer and explorer focused on South America announced that drilling at the Indico-1 well on the CPO-5 block (AMER 30%) reached target depth of 10,604 feet measured depth and encountered the targeted Lower Sands (LS3) of the Une formation.

The LS3 sand package is the formation which holds the 120 feet oil column discovered at Mariposa, some 6.5 kilometres North West of Indico-1. The Mariposa well produced at a stable rate of approx. 3,200 barrels of oil per day in natural flow from 10 feet of perforations near the top of the 120 feet oil column for over a year, during which time it has produced over 1.2 million barrels of oil with no significant water cut, which remains at 0.05%.

Indico-1 has been logged with a Triple-Combo wireline logging suite from Schlumberger. Initial analysis by the Company indicates that a 283 feet gross, 209 feet net, oil column is present in the LS3 formation. The LS3 unit is a high quality sand with some shale intercalations, principally towards the base. The LS3 unit overlies Palaeozoic basement. No Oil-Water-Contact (‘OWC’) was detected in the wireline logs acquired to date, hence the base of the oil column encountered at the Palaeozoic level represents a Lowest-Known-Oil for the Indico structure.

The next steps for the well operations include acquisition of further wireline logging data, including pressures and samples across the reservoir. A 7-inch production liner will then be run and cemented followed by short term testing of the well. Further updates will be provided as operations develop and the volumetric models are refined based on logging and testing data.

Once operations are complete at Indico-1, the rig will move to drill Sol-1, which is a further 6.5 kilometres south of Indico-1 and approximately 13 kilometres southeast of Mariposa-1. The Sol-1 well will also target the LS3 unit as encountered in Mariposa-1 and Indico-1.

 

John Wardle, CEO of Amerisur said:

‘In our view the principal pre-drill risk in this well was the presence of significant sand development in the Une formation. The results of the drilling have significantly exceeded our expectations in this respect and of course the very significant oil column encountered means we will have to review, with our partner ONGC Videsh, the resources associated with the Indico structure. The fact that no OWC was encountered is also very positive for the eventual size of recoverable reserves within the structure. Naturally, given this result, the Company and our partner will be reviewing options for further appraisal wells into the Indico structure in the short term, which will be required to further extend and define the resources encountered.

‘Our impression now is that we are developing an important play fairway within the LS3 unit of our large CPO-5 block, which will be further explored with the drilling of Sol-1 post short-term testing of Indico-1.’

Giles Clarke, Chairman of Amerisur said:

‘This is an excellent result for Amerisur and our partner ONGC Videsh, and underlines the very high potential of this Llanos basin block. I take this opportunity to congratulate ONGC Videsh on this important success and to thank them for their efficient and productive drilling of this key well.’

ONGC Videsh announces Indico-1  oil discovery

ONGC Videsh (OVL), the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corp (ONGC), the National Oil Company of India, registered a significant discovery of oil in its onshore block CPO-5, Colombia, in the Llanos Basin. OVL, which is Operator, holds 70% stake in the block along with its Partner Petrodorado South America S.A. Sucursal (PDSA), Colombia (30%).
The well Indico-1 was spudded on 7th November 2018 and completed the drilling on 15th December 2018. The well Indico-1 encountered Lower Sands (LS-3) of Une Formation (Cretaceous) at a depth of 9833 feet (MD) found to be oil bearing, before terminating the drilling at 10,602 feet (MD) in Paleozoic. The well was successfully logged and found to have 284 feet of gross thickness and 241 feet net pay, single hydrodynamically connected reservoir with no indication of OWC. A 40 ft interval of the upper part of LS-3 reservoir was perforated and completed for production in self-flow. During the test, the well flowed at self-flow rate of appx. 4,000 BOPD at bean size 40/64” and THP of 241 psi with oil of 35.9° API, BS&W – 0.3/0.4% and negligible gas. Currently the Well is under Short Term Testing with multi bean study for further evaluation.

OVL had earlier discovered commercial oil of 40° API in LS-3 sands in the well Mariposa-1 in 2017, which is located 6.5 km from Indico-1, and the continuation of same play is confirmed in the recent well. The Company now plans to drill more exploratory wells to chase this important Cretaceous clastic corridor in immediate future. OVL is also embarking on acquiring additional 3D Seismic data to map more drillable prospects in the other sectors of the block.

OVL has a significant presence in Colombian Oil & Gas sector and holds PI in 6 exploratory blocks in addition to a producing 50% joint venture company, Mansarovar Energy Colombia Ltd (MECL).

Source: ONGC Videsh

Amerisur Resources completes acquisition of Gulfsands Putumayo 14 block

Amerisur Resources, announced the approval from the Agencia Nacional de Hidrocarburos (ANH) to the assignment of 100% Operated working interest in the Putumayo 14 (Put-14) block in Colombia, in favour of its affiliate Amerisur Exploracion Colombia Limitada. The ANH approval to the assignment has enabled the closing and completion of the farm in agreement (FIA) executed with Gulfsands Petroleum.

The Put-14 block covers 46,361 hectares in the Caguan-Putumayo basin and is located contiguously to the south of Amerisur’s operated Terecay block. The contract is an Exploration and Production contract held with the ANH. The contract carries an X Factor of 5%. The contract continues in Phase 0, in the process of previous consultation (consulta previa) that has already initiated with an indigenous community within the block, as required by law before operations commence.

As per the terms of the FIA, Gulfsands transferred to Amerisur the total amount of US$750,000 (plus an additional amount to be transferred in Colombia once accounts have been conciliated between the Parties), which corresponds to the balance of the initial amount of US$1,250,000 that was agreed between the Parties to be a contribution from Gulfsands to the consulta previa and operational costs of Phase 0. Additionally Gulfsands transferred the total amount of US$1,702,208 that will be required for the guarantee for the Phase 1 work programme in favour of Amerisur.

Subsequent to the consulta previa, Phase 1 commitments are the acquisition of 98km of 2D seismic data and the drilling of one exploration well. The period of Phase 1 is 36 months from the end of Phase 0.

John Wardle, CEO of Amerisur commented:

‘We are very pleased to have closed this attractive deal for the Company, further consolidating our strategic position in the Putumayo and adding additional prospective acreage to our Terecay-Tacacho play fairway, where we and our partner Oxy Andina see significant potential in multi-layered reservoirs, proven in our existing operations, in legacy wells and within Ecuador. The block has further strategic importance in that it extends south towards the Putumayo river and Ecuadorian border. This brings benefits in terms of accessibility for operations and eventual evacuation of produced crude by providing a pathway to access the pipeline systems of Ecuador, in a similar way to the existing OBA system in our Platanillo field.’

Source: Amerisur Resources

Cuba

Melbana finalises contract with CubaPetroleo

Highlights:

• Santa Cruz Incremental Oil Recovery (IOR) contract finalised with Cuba’s national oil company, CubaPetroleo
• Santa Cruz oil field provides Melbana with an accelerated path to potentially becoming an oil producer and booking reserves in Cuba
• Melbana Energy provided an update on activities in the Santa Cruz oil field – an area that has been in production since 2006 and which was initially estimated to have a resource of up to 100 million barrels of recoverable oil.

In March 2018, Melbana secured the exclusive rights to assess the Santa Cruz oil field and negotiate a long term binding Incremental Oil Recovery (‘IOR’) Production Sharing Contract (‘PSC’) from the national oil company of Cuba, CubaPetroleo (see ASX Release 8 March 2018).

Melbana completed its initial assessment, yielding a number of promising opportunities to enhance production from the designated area. Melbana finalised a binding contract with CubaPetroleo, which is subject to standard Cuban regulatory approvals. This provides Melbana with a long term right to share in any enhanced production from the Santa Cruz oil field. Under an IOR contract, additional production above an agreed base production rate is shared as depicted figuratively in Figure 1. In general, the commercial terms are consistent with exploration PSC terms, such as those that apply to Melbana’s Block 9 PSC, with provisions for cost recovery and sharing of profit oil.

The Santa Cruz IOR PSC is split into multiple phases, with an initial study period of desk-based technical work followed by an implementation phase. The initial study period phase will last a maximum of 8 months. Melbana may elect to proceed to the next implementation phase, which includes a minimum program of two side-track wells from existing well bores to new geological targets. To accelerate opportunities to enhance oil production as soon as possible, Melbana engaged a Canadian consultant with extensive Cuban IOR experience to identify possible debottlenecking opportunities.

CEO, Robert Zammit, said: 

‘Securing the Santa Cruz IOR opportunity is a key plank in our strategy to become a producer in the near term. I am pleased that we have identified potential opportunities to enhance production at Santa Cruz and that we have had CubaPetroleo’s support to complete our commercial negotiations promptly and lock in the opportunity. Our ability to identify the enhanced oil opportunities in Santa Cruz was greatly accelerated given our learnings from Block 9.

During our marketing activities for Block 9, we noted strong investor and industry interest for Santa Cruz, given its size and existing production. In due course, Melbana will likely seek to fund the field work required to increase oil production from Santa Cruz at the asset level.’ubaPetroleo’s support to complete our commercial negotiation

Source: Melbana Energy

French Guiana

Total exploration campaign offshore

Total is ready to start its exploration campaign on the Guyane Maritime license, located 150 kms off the French Guyana coast, following arrival of the drilling ship on site, as authorized by the prefectoral decree dated October 22, 2018.

Conscious of the questions that this campaign could raise, Total wishes to highlight that it is a responsible company that conducts operations while constantly seeking to minimize environmental risk and is determined to act with transparency. As such, Total commits to the following:

Total obviously does not conduct drilling operations in coral reefs
The closest reef identified is located 30 kms from the drilling point and is not coral. According to the scientists who carried out a 50-day oceanographic survey on-site in 2017, including those from the Paris National Museum of Natural History, it is a discontinuous rocky plateau, on the edge of the continental shelf, presenting scattered biological communities where hundreds of samples have been taken for study (see photos). This plateau is located 30 kms from the drilling point and at 100 meters water depth (compared to 2,000 meters water depth at the drilling area, see maps).

Total will carry out its drilling campaign with transparency

Practically, this means that Total will report on the progress of its work throughout the drilling process, as part of the Committee for Monitoring and Consultation. This Commission, led by the authorities, includes approx. 50 economic and social actors.

This approach follows public meetings that Total held in 2017 at its own initiative in several Guyanese towns. The Group has also made available to the general public the full file of its exploration project, including the Environmental Impact assessment, recognized for its quality by the Environmental Authority.

Total invites NGOs, who wish to do so, to visit its installations to understand the precautionary measures taken on its drilling rig and to create an opportunity for reasoned dialogue.

Total stresses that there are 200 people on board its drilling ship and the five support vessels around it. Their safety is the absolute priority. As such, a safety perimeter forbids navigation of all unauthorized watercraft within 500 meters of the well, in compliance with current legislation.

About the Guyane Maritime license

The Guyane Maritime license is an existing exploration license, awarded in 2001. Its extension was requested in March 2016 and granted on September 14, 2017, in accordance with the legislation on hydrocarbons dated December 30, 2017

Located 150 kms off the coast and mostly deepwater, the license covers 24,000 sq kms beyond the Guyanese continental shelf. The drilling area is located in the central part of the license, at 2,000 meters water depth.

Total’s objective on the Guyane Maritime license is to drill one last exploration well, following the five formerly drilled between 2011 and 2013 in order to conclude definitively whether an exploitation phase is relevant.