PACIFIC RUBIALES ANNOUNCES A SIGNIFICANT OIL DISCOVERY IN THE LOS ANGELES-1X EXPLORATION WELL IN BLOCK 131, AND AN UPDATE ON BLOCK 126, ONSHORE PERU
Pacific Rubiales Energy Corp. has released well test results from the Los Angeles 1X well located in block 131 and has provided an update on its block 126, both located in the onshore Ucayali basin in Peru. The company gained its interest in both blocks through the Petrominerales Ltd. acquisition completed in late 2013.
Ronald Pantin, chief executive officer of the company, commented: "The company is very encouraged by the test results in the Los Angeles 1X well in block 131 and is looking forward to progressing this discovery and the earlier Sheshea 1X oil discovery in block 126 through an evaluation phase and future development and production. These light oil discoveries support our confidence in the potential of the underexplored onshore basins in Peru."
Block 131
Pacific Rubiales, through its wholly owned subsidiary Pan Andean Resources PLC, Sucursal del Peru, holds a 30-per-cent working interest in block 131 in Peru. The company, in joint operations with the operator CEPSA Peru S.A., has now carried out the third phase of exploration in the block. The operator carried 100 per cent of the well costs and will retain the remaining 70-per-cent working interest. The Los Angeles 1X well in block 131 was spudded in mid-September, 2013, and reached a total depth of 12,409 feet in late November. Petrophysical evaluation indicated the presence of 62 feet of net pay in the Cretaceous-aged Cushabatay formation.
Three separate tests have now been conducted across different net pay intervals in the Cushabatay formation under swabbing and natural flow conditions and through variable choke sizes over 22- to 60-hour test periods. Final flow rates from the three test intervals were 135 barrels per day, 936 barrels per day and 2,351 barrels per day, respectively, of 44-degree- to 45-degree-API light sweet oil. Water cuts ranged from 10 per cent in the lowest interval to 0.3 per cent to nil in upper intervals.
The produced oil was trucked and sold to the nearby Pulcallpa refinery in Peru. The operator has applied for a 30-day initial production test to further understand the reservoir drive mechanism to be followed by an extended production test beginning in mid-2014 (subject to government approvals). Both companies are currently evaluating development and oil marketing strategies for the block.
Block 126
The Sheshea 1X exploration well was drilled to a total depth of 8,925 feet in late 2012 and tested 1,430 barrels per day of 53-degree-API light sweet oil with no water from a 10-foot perforated zone in the Cretaceous-aged Chonta formation. The Cretaceous-aged Agua Caliente formation tested 80 barrels per day of 42-degree-API oil with a 97-per-cent water cut suggesting a potential accumulation updip from the well. The company holds a 100-per-cent operated working interest in block 126 and has recently applied for two environmental impact assessments in order to progress the discovery to an evaluation phase followed by the expected development of the discovery. The first EIA is for 23 drilling pads, comprising eight wells each plus a 2-D and 3-D seismic program. The second EIA is primarily for early production facilities. The company expects to receive the approval of these EIAs by the end of 2014.
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