CALGARY, ALBERTA--(Marketwire - Feb. 25, 2013) -
(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)
Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") is pleased to announce that the Cohembi-6 appraisal well in the Suroriente Block encountered 24 feet of net oil pay and will commence production in early March, 2013. Drilling has now commenced from the same surface pad for the Cohembi-9 well, which will be directionally drilled 1.2 kilometers south of the Cohembi-6 well.
Mr. Alastair Hill, the Corporation's President and Chief Executive Officer commented, "The results from the Cohembi-6 well have exceeded our expectations, as we have encountered one of the thickest net pay intervals in the field to date. This success gives us optimism as we continue our appraisal and development in the southwestern quadrant of the field".
The Cohembi-6 well is the first well drilled from the newly constructed Cohembi-6 surface pad. The operator of the Suroriente Block and the Corporation now plan to drill three additional wells from the same pad. The Cohembi-6 well was spudded on January 20, 2013 and drilled vertically to a total depth of 8,642 feet, approximately one kilometer south-west of the Cohembi-13 well (see the Corporation's January 7, 2013 press release). It encountered 24 feet of high quality oil pay with no indication of an oil-water contact. The reservoir pressure measured during open hole logging operations confirmed good connectivity with the main Cohembi pool. The Cohembi-6 well was subsequently completed, and produced to the drilling rig tanks for a five hour period to recover workover fluid and confirm inflow capability. Based on openhole logs and the brief inflow test, the Corporation expects to produce Cohembi-6 at a stabilized rate of approximately 1200 barrels of oil per day (175 barrels of oil per day net to the Corporation after royalty) and zero percent watercut once flowline construction is finalized. This construction is expected to be completed in the first week of March, 2013.
The Cohembi-9 well commenced drilling on February 20, 2013 and is expected to take approximately 25 days to drill, complete, and place on production. This well will be drilled 1.2 kilometers to the south of the Cohembi-6 well to further delineate the southern area, which by the Corporation's technical analysis is expected to hold a large portion of the remaining undeveloped reserves in the Cohembi oilfield.
Details explaining the Corporation's activities, guidance, and 2013 drilling program will be updated within the next few days on the Corporation's website at www.suroco.com.
The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia. The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.
This press release contains forward-looking statements relating to the operational and exploration activities for Suroco, the evaluation of certain prospects in which the Corporation holds an interest, estimated number of drilling locations, expected capital program (including its allocation), production growth, reserves growth, the ability of the Corporation to sell its crude volume and other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; the need to obtain required approvals from regulatory authorities; product supply and demand; market competition; political and economic conditions in the country in which the Corporation operates; and other factors, many of which are beyond the control of the Corporation. You can find an additional discussion of those assumptions, risks and uncertainties in Suroco's Canadian securities filings.
Readers should also note that even if the 2013 drilling program as proposed by Suroco is successful, there are many factors that could result in production levels being less than anticipated or targeted, including without limitation, greater than anticipated declines in existing production due to poor reservoir performance, mechanical failures or inability to access production facilities, among other factors.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, Suroco disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Suroco undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.