Page 19 - LatAmOil Week 36
P. 19
LatAmOil NEWS IN BRIEF LatAmOil
PERFORMANCE wells which had previously been shut in. Net Porro Norte 1 Exploration well, VIM-5 E&P
2020 Santa Cruz Sur production (net to the Contract, CNE Oil & Gas S.A.S, 100% Operated
Echo Energy provides Santa Company) over the period 1 January to 7 Sep- Working Interest: Using the Pioneer 302 drill-
tember was an aggregate of 511,416 barrels of oil ing rig, the Porro Norte 1 exploration well was
Cruz Sur operational update equivalent with an average production rate of spud on July 20th, 2020 and reached 11,810 feet
2,040 barrels of oil equivalent per day.
measured depth on August 17th, 2020. Signifi-
Echo Energy, the Latin American focused Santa Cruz Sur is a collection of 5 produc- cant over-pressure up to 13.7 ppg was accompa-
upstream oil and gas company, has provided an tion concessions located in the onshore Austral nied by strong gas shows encountered over an 80
update on operations at its Santa Cruz Sur blocks Basin, southern Argentina feet true vertical depth (“ft TVD”) interval while
onshore Argentina. Martin Hull, CEO of Echo Energy, com- drilling the primary reservoir objective in the
Infrastructure Investment: The Santa Cruz mented: “We are now moving into a period Cicuco limestones of the Cienaga de Oro For-
Sur Joint Venture has recently purchased four where we are both looking to invest in infra- mation. Based on wireline logs, the well encoun-
gas compressors, which were previously leased structure in anticipation of future growth, to tered 24 ft TVD of potential gas pay within the
on a monthly basis. Two of these compressors are add value for shareholders wherever we can, Cicuco limestone, a new play type on the VIM5
located on the Cerro Norte field, one on Oceano such as through our purchase of the compres- block. The well was suspended and will be tested
and one on Campo Bremen. sors at Santa Cruz Sur, and also increase output with a workover rig at a later date.
The compressors are used to increase the from certain wells to maximise returns from Remaining 2020 Drilling Program: Canacol
pressure of the gas for pipeline transportation our assets. This combination of investment and maintains 2 drilling rigs under contract, Pioneer
from the fields. The purchase of these compres- active management of the portfolio demon- 53, and Pioneer 302, and plans to drill 4 addi-
sors at a gross cost of $2.2mn will be paid off over strates that we are now entering an important tional wells during the remainder of 2020. The
thirty-six monthly instalments, with a three- period of growth for Echo, as we look to the Pioneer 302 rig is currently mobilizing to drill
month grace period before the first payment is future and deploy both time and resource above the Fresa-1 exploration, located close to the Cor-
required. and beneath the surface to build our business.” porations Jobo facility. Fresa 1 is anticipated to
This arrangement is expected to reduce Echo Energy, September 09 2020 spud in late September 2020. Upon completion
gross monthly operating expenditure by around and testing of the Fresa 1 exploration well, the
$100,000 when compared to the previous lease Canacol Energy Provides Rig 302 will be mobilized to drill the Flauta 1
arrangement, as well as providing security for exploration well, which is anticipated to spud in
future gas production. Gas Sales and Drilling mid-November 2020.
By securing ownership of this important Rig 53 will move to Pandereta 4 appraisal
infrastructure the Santa Cruz Joint Venture Update well after completing the Pandereta 8 develop-
is better able to facilitate anticipated future ment well. Operations at Pandereta 8 have been
increases in production levels resulting from Canacol Energy is pleased to provide the follow- delayed by an outbreak of Covid in the area.
planned production enhancement activities. ing gas sales and drilling update. After drilling and completing the Pandereta 4
Production Increases: As a result of improved Gas Sales: Realized contractual natural gas appraisal well, RIG 53 will be mobilized to drill
market conditions, the Company has been sales for the months of July and August 2020 the Siku-1 exploration well, which is expected to
undertaking upfront work focused on increasing averaged approximately 162mn standard cubic spud in mid-December 2020.
liquids production at Santa Cruz Sur, in a phased feet per day (MMscfpd”). In addition to the real- Canacol Energy is a gas exploration and pro-
approach, by bringing wells back into produc- ized contractual gas sales (which are essentially duction company with operations focused in
tion that had previously been shut in earlier this gas produced, delivered, and paid for) the Cor- Colombia. The Corporation’s common stock
year as a response to the oil price at that time. poration saw an additional 8 MMscfpd of gas trades on the Toronto Stock Exchange, the
The initial phase of these operations have sales nominations throughout July and August, OTCQX in the United States of America, and the
focused on oil wells that have historically shown which must be paid for during the remainder of Colombia Stock Exchange under ticker symbol
a lower volume of produced water and five oil 2020 for which delivery timing is at the discre- CNE, CNNEF, and CNE.C, respectively.
wells have now been successfully brought back tion of the off taker. Canacol Energy, September 09 2020
on stream. This has increased average gross liq-
uids daily production by 108 barrels of oil perday
across the Santa Cruz Sur assets. Projected for-
ward into Q4 2020, this additional oil produc-
tion from the initial phase of reinstated wells is
expected to generate gross additional monthly
operating revenue from liquids (oil and conden-
sate) of approx. $120,000, assuming a Brent oil
price of $45/bbl.
The wells which have now successfully been
brought back online are producing at an aver-
age rate approx. 13% higher than the pre shut-in
levels potentially due to pressure buildup in
the reservoir during the period of shut-in. The
Company continues to closely monitor this
development with a view to understanding
whether similar initial production increases can
be achieved across the remaining inventory of
Week 35 03•September•2020 www. NEWSBASE .com P19