Pacific Exploration & Production Corporation (TSX: PEN) ("Pacific" or the "Company") is pleased to provide an operational update.
Message to Shareholders:
Barry Larson, Chief Executive Officer of the Company commented:
"We are very pleased with the results of our exploration and development program during the year-to-date, and we are looking forward to testing a number of our high impact prospects this year. The Company's exploitation activity has been particularly successful on the Guatiquia Block where both Ardilla-3 and Ceibo have added to the Company's light oil production in Colombia."
Exploration and Development Update
Colombia - Deep Llanos – Guatiquia Block – Avispa Ceibo Ardilla Field
The Ardilla-3 exploration well was spudded on March 9, 2017 and reached a total depth of 12,900 feet on April 16, 2017. Petrophysical interpretation indicated the presence of 66 feet of net pay in the Lower Sand 1 (with no water contact present), and 7 feet of net pay in the Guadalupe formation. The well was cased and perforated in the upper 20 feet of the Lower Sandstone-1 Unit. Production with an electrical submersible pump commenced on May 8, 2017. Since then, the well has produced a total of 23,000 bbl of 18° API oil at an average rate of 2,030 bbl/d, an average water cut of 4 and 18% reservoir drawdown. The well is currently producing at 2,122 bbl/d with 6% water. Ardilla-3 was drilled in a structurally downdip position to test a potential oil water contact. The Company is currently revising the reservoir models as no water contact was interpreted from logs. The Ardilla-3 result suggests a materially larger pool than was originally discovered.
Ceibo-1, the discovery well for the Avispa-Ceibo-Ardilla ("ACA") pools in the Guatiquia block has been re-completed in the Guadalupe Formation. The well was placed on test commencing May 11, 2017 and has produced 6,800 bbls of 17 degree API oil at an average rate of 530 bbl/d with an average water cut of 78% with a 36% reservoir drawdown. The well is currently producing at 600 bbl/d at 77.5% water cut. The production will eventually be co-mingled with the LS-1 producing sand already completed in the well. Upon completion of testing of this interval two more tests are planned for the middle and upper Guadalupe sands. These tests will confirm the productivity of each Guadalupe unit which will assist in field development.
Since the drilling of Ceibo-1, twelve additional wells have been drilled into the pools giving a total of thirteen wells currently on production. Eleven wells are producing from the Lower Sand Unit and two wells from the Guadalupe Formation. The Company is updating the reservoir model in anticipation of implementing secondary recovery schemes for both the Lower Sand 1 and the Guadalupe reservoirs.
Colombia - Deep Llanos – Guatiquia Block – Candelilla Field:
The Candalilla 6 exploitation well was spud on May 24, 2017 and is targeting the Guadalupe formation on a structural high. The well is being directionally drilled from the Candelilla 1 pad.
Pacific is a Canadian public company and a leading explorer and producer of natural gas and crude oil, with operations focused in Latin America. The Company has a diversified portfolio of assets with interests in more than 30 exploration and production blocks in Colombia and Peru. The Company's strategy is focused on sustainable growth in production & reserves and cash generation. Pacific is committed to conducting business safely, in a socially and environmentally responsible manner.
The Company's common shares trade on the Toronto Stock Exchange under the ticker symbol "PEN".
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.