Interoil is pleased to announce the reopening of Vikingo's operation after its
temporarily closure on 19 May 2020 due to the effects of the COVID-19 pandemic
with the lock-in effect in place. Since last Monday, 20 July 2020, Vikingo's
production has reached a stable flow of 250 barrels of oil per day. This
production represents a 25 per cent rate increase over Vikingo's production
prior to its shut-in.
Production increase at reopening is promising and comes at odds at what is
regularly assumed in a well reopening after a shut-in period as long as
Vikingo's closure, where it would be most likely to expect a small reduction in
the flow rate when bringing the well back to production. The fact that
Vikingo's production has stabilized with a 25 per cent positive increment is
encouraging and indicative of a potential higher drainage area than that
initially anticipated when decision was made to drill this well.
This production flow increment is in line with the conclusions reached by
Interoil technical team after the analysis of the last build-up test earlier
this year in the sense that "Vikingo drainage radius is bigger than initially
anticipated". The increase also allows Interoil to remain positive about the
LLA47 petroleum potential.
In relation with Vikingo's declaration of Commercial Discovery, Interoil shall
submit two documents before regulatory authorities: (i) a Development Program
(DP) to be filed with the Colombian National Hydrocarbons Agency (ANH) and (ii)
an Environmental Impact Study (EIA) to be filed with the Colombian National
Environmental Agency (ANLA).
The approval of the DP by the ANH and of EIA by the ANLA are mandatory steps in
granting the Exploitation Concession for the Vikingo Discovery. Interoil has
been working in the preparation and submission and expects their approval in the
coming weeks. Despite Interoil's expectations, however, there could be delays
in the approval process by either the ANH and/or the ANLA leading to a possible
request by the ANH to suspend Vikingo's production until both the DP and EIA are
duly executed and approved by relevant authorities.
Leandro Carbone, CEO, commented: "We are glad with Vikingo's flow rate after its
reopening and we are confident on the results reached from a technical
standpoint because they are converging towards a prolific hydrocarbon potential
within LLA-47 block."