Page 19 - LatAmOil Week 36
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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
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