Nicaraguan oil development to take time

By OGJ editors
HOUSTON, July 12 -- Norwood Resources Ltd., Vancouver, BC, said it is optimistic it will be able to convert its exploration lands in northwestern Nicaragua's Sandino basin into commercially producing fields.

The company, however, faces difficulties due to the characteristics of its apparent discovery there and said artificial lift probably will be required. A long-term production test is planned starting in late 2007.

The San Bartolo Rodriguez Cano-1 well about 50 km west of the 20,000 b/d Managua refinery recovered 34-43° gravity oil before being suspended and classified as a potential oil well. Measured total depth is 8,790 ft with 11.5° deviation at TD and 7-in. casing set at 8,764 ft (OGJ Online, Feb. 16, 2007).

Significant amounts of reservoir sands are present, but some are fairly tight and will require special attention to obtain commercial production from them. The well found a potentially large amount of oil in place, the company said.

Norwood drillstem tested 11 intervals totaling 587 net ft, recovering oil from seven. Three were tight, and one produced salt water. One of the seven that recovered oil is considered nonproductive.

The other six have estimated production capacity of 10 to 100 b/d/zone and a total combined capacity of 205 b/d. The zones have low permeabilities of 2 to 50 md, and some have low pressure. At least three require some remediation to reduce water production.

Norwood said it will consider delineation drilling near San Bartolo to obtain core data and further geologic, reservoir engineering, and production information and may reenter its second well, Las Mesas Gutierrez-1, for production tests 11 km distant.

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