Parex-CESC developing Llanos basin Kona field

April 18, 2011
The Colombian subsidiary of Parex Resources Inc., Calgary, and Columbus Energy Sucursal Colombia are developing the 2010 Kona field discovery and are further exploring the LLA-16 block in Colombia’s Llanos basin.

By OGJ editors
HOUSTON, Apr. 18
-- The Colombian subsidiary of Parex Resources Inc., Calgary, and Columbus Energy Sucursal Colombia are developing the 2010 Kona field discovery and are further exploring the LLA-16 block in Colombia’s Llanos basin.

The Kona-1 discoveery well has produced a gross 264,000 bbl of light oil from December 2010 to Mar. 31, 2011. Output averaged 2,520 b/d in March with 5% water cut on natural flow.

Parex expects to complete construction in May of a 25,000 b/d oil treatment plant on the Kona-1 lease. It will pipe clean oil 7 km to the loading facility. After commissioning the plant and drilling a water disposal well, it will temporarily shut-in Kona-1 and install an electric submersible pump to maintain production at an expected 2,000 b/d.

Plant commissioning is expected to allow production start-up of other shut-in Kona wells that exhibit poor cement isolation from water-bearing zones thereby prohibiting dry oil production.

South of Kona field on the block along a separate fault trend, the Supremo-1 well is expected to go on production in early May following the completion of a water disposal well and associated handling facilities. Supremo had tested 2,500 b/d of fluid from Mirador with a 31° gravity oil at 500 b/d.

Based on test results or log analysis of Kona-1, Kona-2, Kona-3, Kona-4, and Supremo-1 and upon the commissioning of the Kona oil treatment plant and the water disposal wells, Parex expects gross production of 4,000-6,000 b/d of oil.

Kona-2 is being redrilled to test the Gacheta or may be completed in Mirador that previously flowed as much as 1,600 b/d of 35° gravity oil, natural. Kona-3 was suspended with a poor cement job in Mirador and tested 750 b/d of fluid, 42% light oil, from the C7 formation, where poor cement isolation is also suspected.

Kona-4 logged potential net oil pay of 20 ft and 30 ft in C7 and Mirador, respectively, while Gacheta was wet. A Mirador completion is planned. Parex has spud Kona-6 to appraise the C7 formation. Log analysis indicated 35 ft and 50 ft of potential net oil pay in C7 in Kona-1 and Kona-2, respectively.

Parex is evaluating the potential to drill an exploratory sidetrack updip from Kopi-1, which tested wet in Mirador and low swab rates of 31° gravity oil in C7.

Exploratory drilling prospects on LLA-16 are Sulawesi-1 and Java-1, both 3D defined multipay targets at 11,000 ft and 12,000 ft, respectively. Parex also plans to drill Supremo-2 updip of Supremo-1, in mid-2011.

The 2011 drilling strategy is to employ two to three drilling rigs and a service rig to allow for continuous operation on the Kona discovery and on other block LLA-16 and LLA-20 drilling prospects.