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Loon Announces New Exploratory Success in Colombia

Source: www.gulfoilandgas.com 11/4/2010, Location: South America

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Loon Energy Corporation announces a new exploratory success at its Visure-1X well, located in the Buganviles Block, Upper Magdalena Valley Basin, Colombia.

The Visure-1X well, drilled on the southwestern flank of the Visure Prospect near to the southeastern border of the Buganviles Block, was drilled to evaluate a structural trap, similar to the trap at the nearby Abanico Field to the northeast. The well had three main exploratory objectives: the Cretaceous Lower and Upper intervals of the Guadalupe Formation and the Tertiary Barzalosa Formation. The well was spud on October 16, 2010 and reached a final depth of 3,380 feet measured depth (“MD”) or 2,205 feet true vertical depth subsea (“TVDSS”) on November 1st, 2010. The well was drilled slightly deviated at an angle of 9 degrees and found the top of the Barzalosa Formation at 2,206 feet MD (1,040 feet TVDSS), the Upper Guadalupe at 2,995 feet MD (1,825 feet TVDSS), the Lower Guadalupe Interval at 3,079 feet MD (1,908 feet TVDSS), and the top of Villeta Formation at 3,272 feet MD (2,099 feet TVDSS).

The petrophysical evaluation of the well in the Barzalosa, Upper Guadalupe and Lower Guadalupe Formations indicated a total net pay of liquid hydrocarbons of 114 feet in the three intervals, ranging from 24.5 to 45.5 feet of net pay and 16% to 26% average porosity. In addition to the oil bearing sandstones, the well also showed gas saturated sandstones in the Barzalosa Formation.

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