CALGARY, ALBERTA--(Marketwire - Aug. 15, 2012) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased to announce that the Cohembi-11 appraisal well has been successfully drilled and placed on production and drilling has now commenced from the same multi-well pad for the Cohembi-8 development location.
Mr. Alastair Hill, the Corporation's President and Chief Executive Officer commented, "The Cohembi-11 well is the first location drilled on older vintage 2D seismic and has now extended the oil-bearing area beyond what has been mapped on the more recent 3D seismic survey. This well result has significantly increased the total oil column height in the Cohembi oilfield and importantly validates our 2D seismic mapping methodology, which has identified a number of Villeta N exploration targets in the Suroriente Block and on our exploration acreage elsewhere in the Putumayo Basin. The drilling program will now re-focus within the area of 3D seismic coverage, first in the area around the Cohembi-1 well where water injection will commence in Q4 2012, and then on delineation of the highly prospective southern area of the field, where we believe the majority of the discovered oil in place is located."
The Cohembi-11 well was spudded on July 14, 2012 and drilled directionally to the west from the Cohembi-4 surface pad, approximately 1.2 kilometers from the nearest bottomhole well location. The well reached a total depth of 9223 feet (8750 feet true vertical depth), and encountered 5 feet of oil pay with no indication of an oil-water contact. The operation from spud to production was completed in 24 days, which is a record time for the Suroriente Block. These results have increased the proven vertical oil column in the Cohembi field by 54 feet to a total of 148 feet, with no water contact encountered to date. It was subsequently cased and completed, and after initial cleanup is producing at a stabilized rate of approximately 240 barrels of oil per day (35 barrels per day net to the Corporation after royalty) of 17 API gravity oil with zero percent watercut. The Cohembi-11 well is expected to continue production at this rate, and has effectively delineated the north-western extent of the Cohembi oil field.
The drilling rig has now commenced drilling the third directional well from this multi-well pad, Cohembi-8, which is targeting a low-risk development location in between the existing Cohembi-4 and Cohembi-5 bottomhole locations. The rig will then drill two directional wells from the existing Cohembi-2 multi-well pad. These wells will fully develop the area around the Cohembi-1 well, which is scheduled for conversion to water injection in October of 2012. Following the new Cohembi-2 pad locations, the rig will commence drilling southern area delineation wells from the planned multi-well pad at Cohembi-6.
Further details explaining the Corporation's activities and 2012 drilling program are contained in a presentation on the Corporation's website at www.suroco.com.
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.
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, expected capital program (including its allocation), production growth, 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 2012 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.