Pacific Rubiales Energy Corp. provided today an exploration update highlighted by initial test results in the Kangaroo-2 appraisal well, located in the shallow offshore, Santos Basin, Brazil.
The Kangaroo-2 appraisal well was drilled in Block S-M-1165, approximately 300 meters (943 feet) up-dip from the Kangaroo-1 discovery well, and confirms a 820 foot gross (442 foot net) oil column in Cretaceous and Paleocene aged reservoirs in the structure. The Company has a 35% participating interest in the wells and five surrounding blocks. Karoon Gas Australia Ltd. (ASX:KAR) ("Karoon") holds the remaining 65% interest and is operator.
As announced in a news release yesterday by Karoon (see Karoon website: www.karoongas.com.au "Kangaroo-2 Appraisal Well Progress Report No. 6"), production testing was conducted over a 36 hour flow period across an initial 27 metre (89 foot) lower interval in the target reservoir. A maximum oil flow rate of 3,360 bbl/d (stabilised rate of 2,300 bbl/d) was achieved through a 44/64" choke with a flowing tubing pressure of 690 psi and a gas-oil-ratio ("GOR") of 620 cf/bbl. Following a 57 hour shut-in pressure build-up period, a second test was conducted with an additional 40 metres (131 feet) opened to flow. In this second test, a maximum flow of 3,700 bbl/d (stabilised rate of 3,300 bbl/d) 38° API oil was attained through a 1" choke with a flowing tubing pressure of 430 psi, a GOR of 650 cf/bbl, with no CO2, H2S, sand or water produced, over a 12 hour test period.
A third test of intervals higher in the reservoir is expected to commence within the next seven days. A decision on a potential side-track program will be made following the completion of testing in the well bore. Karoon is evaluating commercial options and early production strategies for the Kangaroo structure, as a result of these tests.
Following completion of all operations in the Kangaroo-2 well, the rig will move to drill the separate Kangaroo West prospect, located approximately 4.5 kilometres from Kangaroo-2, on the western side of the Kangaroo salt structure.
Ronald Pantin, Chief Executive Officer of the Company, commented:
"We are very pleased with the flow results of the first test interval in the Kangaroo-2 appraisal well, which confirms the significant discovery status of the Kangaroo prospect on our blocks in the offshore Santos Basin, in Brazil. Testing is ongoing, but initial analysis by the operator suggests that reservoir characteristics in the structure are excellent and would support flow rates of 6,000 to 8,000 bbl/d in a vertical producing well, and higher rates in a horizontal well bore. We are looking forward to the results of the additional production testing in Kangaroo-2, and the drilling of the separate Kangaroo West prospect in early 2015.
"The results from Kangaroo-2 complete a very successful year of exploration for the Company. Over 10,000 bbl/d of new net light oil production in Colombia and Peru have been delivered through the drill bit this year from successful exploration wells and we have additional barrels behind the pipe from recently drilled wells. These results demonstrate the quality and value of our exploration portfolio and contribute to our net production which is expected to exit the year at between 151 to 152 Mboe/d."