Large Caguan basin find shapes up in Colombia

By OGJ editors
HOUSTON, Apr. 6 -- Emerald Energy PLC and Canacol Energy Ltd., Calgary, are delineating what appears to be a large heavy oil discovery in Colombia's Caguan basin 200 miles south of Bogota.

Five wells have been drilled, a sixth is drilling, and a seventh is planned in the southern part of Capella, an accumulation of 9-11° gravity oil in the Eocene Mirador formation that appears from 2D seismic to cover 22,000 acres on the Ombu E&P contract area.

Delineation drilling is planned on the northern half of the structure later in 2009 after environmental permitting.

Emerald Energy said gross proved and probable reserves are 14.8 million bbl from estimated initial oil in place of 245 million to 1.1 billion bbl. The six existing wells are on the southern 7,400 acres of the structure. The first five wells found oil in both intervals.

Emerald Energy and Canacol hold 90% and 10% interest, respectively, in the 74,130-acre Ombu contract area, and Emerald Energy holds 100% working interest in the 27,181-acre Durillo contract area adjacent to and southwest of Ombu. Emerald Energy said Durillo may have potential in the same exploration play as Capella.

The vertical Capella-1 went to a total depth of 3,802 ft in mid-2008 and found 189 ft of potential hydrocarbon-bearing interval in two Mirador sandstones. The two tested at a combined 240 b/d oil progressive cavity pumps.

Emerald Energy plans a cyclic steam injection pilot in one well this year. The field production rate is constrained by oil trucking and sales capacity. The individual intervals tested at initial rates of 26-240 b/d of oil and stabilized at as much as 400 b/d on extended tests with water cut steadily declining to 6%.

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