Suroco Provides Update of Cohembi Development Operations

Source: www.gulfoilandgas.com 11/26/2012, Location: South America

Suroco Energy Inc is pleased to announce that the Cohembi-12 appraisal well has been successfully drilled and placed on production and drilling has now commenced from the same multi-well pad for the Cohembi-13 development location.

Mr. Alastair Hill, the Corporation’s President and Chief Executive Officer commented, “We are very pleased to have the Cohembi-12 well on production. Based upon the short duration test, we expect the well to produce at rates in excess of 1,200 barrels of oil per day (175 barrels per day net to the Corporation after royalty). The other major advance with the Cohembi field development is the progress of the water injection facility where construction is nearing completion and we expect to commence water injection and pressure maintenance at the Cohembi-1 well in early December. This is a key step for the recognition of reserves under enhanced recovery in the proven category.”

Cohembi-12 Well
The Cohembi-12 well was spudded on September 22, 2012 and drilled directionally to the west from the Cohembi-2 surface pad, approximately 940 meters from the nearest well location. Drilling operations were completed on November 9, 2012 and took longer than planned due to the failure of a major rig component that required operations to be temporarily suspended. Costs associated with this delay are being principally borne by the drilling contractor.

Following the suspension, the well was successfully drilled to a total depth of 9,279 feet (8,647 feet true vertical depth), and encountered 12 feet of uniformly high quality net oil pay with approximately 27% porosity and no indication of an oil-water contact. The reservoir pressure confirmed continuity with the main Cohembi oil pool.

Cohembi-12 has subsequently been cased and completed, and was tested briefly at a rate of approximately 1,200 barrels of oil per day (175 barrels per day net to the Corporation after royalty) prior to being put on permanent production through a 4-inch group production line with the existing Cohembi-2 oil well. Given the production capability of the Cohembi-12 well and the existing production from the Cohembi-2 well, which has averaged 1,248 barrels of oil per day (182 barrels per day net to the Corporation after royalty) in November, a larger capacity group pipeline will now be installed to facilitate high rates of production from the Cohembi-2 multi-well surface pad.

Operations Update
Service rig operations are underway for conversion of the Cohembi-1 oil well to water injection for pressure maintenance. Injectivity testing conducted on November 20 confirmed that the target injection rate of 4,000 barrels of water per day will be achievable. Construction of injection facilities including six 500-barrel water storage tanks and dual injection pumps is underway, and injection is expected to commence at Cohembi-1 in early December of 2012.

The drilling rig spudded the Cohembi-13 well on November 22 from the same Cohembi-2 surface pad. The well will be drilled directionally, approximately 1 kilometer south of the Cohembi-2 bottomhole location. Subsequent to the completion of Cohembi-13, the rig will move to the Cohembi-6 pad to delineate the southern area of the Cohembi field with three wells.


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