PetroLatina to develop Serafin gas project

Dec. 6, 2006
PetroLatina Energy PLC, formerly Taghmen Energy PLC, has initiated development of the 1991 Serafin gas discovery in Area B of the Tisquirama License in Colombia.

By OGJ editors
HOUSTON, Dec. 6 -- PetroLatina Energy PLC, formerly Taghmen Energy PLC, has initiated development of the 1991 Serafin gas discovery in Area B of the Tisquirama License in Colombia.

The Serafin well is north of PetroLatina's Los Angeles field and 3.5 km from a main gas pipeline.

PetrLatina will reenter and work over the well in January 2007 and base design of a tie-in to the pipeline on test results. It expects commercial gas deliveries to start in the second quarter of 2007.

Cost of the development, including the pipeline and tie-in, is estimated at $1.36 million, of which $680,000 is PetroLatina's share.

According to PetroLatina, recent increases in the price of gas in Colombia to about $3/Mcf will enable the project to pay out in 5 months. Local industries will buy the gas.

Texas Petroleum Co. drilled the Serafin well to test Paleocene Lisama sands. Although that target was absent, the well encountered a gas-bearing sand in a stratigraphic trap of the Miocene Real Group.

Logs indicated 18 ft of pay with porosity of 28% and a water saturation of 27%. The well flowed at rates of up to 16 MMcfd from a 4,582-98-ft zone on extended tests. Reservoir pressure is 1,978 psi, and the gas is over 97% methane.

Gross reserves are estimated at 4-8 bcf (2-4 bcf net to PetroLatina).

PetroLatina is using 3D seismic data to identify further prospects.

PetroLatina has a 50% interest in the project. PetroSantander Inc. holds the other 50%.