CNE to test drill 6 appraisal wells to test the shallow Lisama formation

Charle Gamba’s, Canacol Energy (CNE:TSX), is planning a follow-up program on their VMM2 E&P contract in the Middle Magdalena Valley of Colombia.  In January the Mono Arana 1 well hit 85 feet of net oil pay in the shallow Tertiary Lisama sandstone reservoir and 230 feet of potential net oil pay in the deeper Crataceous La Luna formation.  ExxonMobil holds a 70.1% operator working interest, CNE holds a 20% working interest and Vetra Exploracion holds the remaining 9.9% working interest.  CNE has recently negotiated a contractual right to an addition 20% of the crude production from the Lisama section.  The partners have agreed to a six well appraisal drilling program to develop the shallow Lisama discovery as well as the construction of production facilities related to the appraisal and development of the Lisama discovery at Mono Arana.  The first appraisal well, Mono Arana 2, is expected to spud in early December 2013 and is to be drilled to a depth of 6,675 feet.

In March, two intervals at the Mono Arana 1 well were production tested over a 3 month period with the first interval (5,509-5,540 feet) testing at a gross average rate of 727bpd of 21 degree-API oil, two barrels of water and 128,000 scfpd gas.  The second interval (5,392-5,408 feet) tested at a gross average rate of 703bpd 21 degree-API oil, 2 barrels of water and 66,400scfpd gas.  They were both eventually comingled and tested for a 28 day period and produced at a gross average rate of 1,043bpd and 271,000scfpd gas.

In addition to the shallow drilling program at the Mono Arana discovery, production testing of the deeper Cretaceous La Luna formation within the Mono Arana 1 well is anticipated to commence in December, 2013.

Read: Canacol Energy Updates on VMM2 Exploration and Production Contract in Colombia

Related: Canacol Announces Oil Discovery at Mono Arana 1 in Colombia