TORONTO, Aug. 26 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE)
announced today the discovery of oil at its Quifa-8 well drilled as an
appraisal well on Prospect "E" at the Quifa Block, located in the Llanos Basin
of Colombia.
The well found the top of the Basal Sandstones at a depth of 2,263 feet
True Vertical Depth Sub-Sea (TVDSS) (2,955 feet measured depth (MD)). The
preliminary petrophysical evaluation shows a gross sand interval of 116 feet
with a net pay zone of 49.5 feet comprising two reservoir sandstones. The
first interval (2955'- 2999' MD) extends the accumulation of the Quifa-5 field
to the west, with a net-oil pay of 33 feet and average porosity of 31%. A
second, deeper sand interval (3048'-3071'MD) with a petrophysical evaluation
shows a net-oil pay of 16.5 feet with 32% average porosity. This deeper
interval effectively confirms a new discovery within the basal sands. Both
intervals show oil-water contacts at 2,999 feet and 3,071 feet MD,
respectively. The company is presently planning to test both reservoirs, and
complete the well as a vertical oil producer.
The Quifa-8 well is located 4.2 kilometres southwest of the Quifa-5 well
drilled in November 2008, which showed 33 feet of net pay.
The Quifa Block is an exploratory block that almost completely surrounds
the Rubiales Field in which the company holds a 60% interest in association
with Ecopetrol S.A. (40%). The Quifa contract gives Pacific Rubiales the right
to develop any discovery until 2031. This block is three times larger than the
Rubiales field and has seven additional prospects that have been identified
with the interpretation of the recently completed seismic campaign.
Exploration Update
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The company converted the Arauca Technical Evaluation Agreement (TEA)
into a new Exploration & Production (E&P) contract with the Agencia Nacional
de Hidrocraburos (ANH). This contract contemplates a 24-month first
exploratory phase with work commitments of two exploratory wells at an
estimated total cost of US$9,000,000. The contract incorporates an area of
173,584 hectares with an estimated resource potential of 297.7 mmbls,
distributed among 16 prospects and leads that have been identified based on
the reprocessing of 2,000 kms of 2D seismic.
Following an optimization and re-evaluation of its exploration portfolio,
the company has decided to relinquish the Alhucema and Jagueyes E&P contracts
executed with the ANH.
The Alhucema block is located in the Middle Magdalena Basin, and was
acquired by the company in the acquisition of Kappa Resources in the second
half of 2008.
