Emerald reports oil find on Ombu block in Colombia

Emerald Energy PLC reported an oil discovery in Colombia at its Capella No. 1 well on Ombu block.

Sep 18th, 2008

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Sept. 18 -- Emerald Energy PLC reported an oil discovery in Colombia at its Capella No. 1 well on Ombu block. The well showed a production rate of nearly 240 b/d of 10.5° gravity oil.

"We are optimistic that these results, together with the data expected from the Capella No. 2 well, will support the commercial development of this conventional heavy oil discovery," said Emerald CEO Angus MacAskill.

Emerald said drilling of the Capella No. 1 exploration well commenced July 10 and reached 3,802 ft TD on July 30.

"Hydrocarbon shows were encountered while drilling the target Mirador formation, and wireline logging indicated the presence of 189 ft of potential hydrocarbon-bearing intervals," the company said.

Colombia's Energy Minister Hernan Martinez said the discovery, which could contain reserves of about 100 million bbl of heavy crude, could be the most important find since Cano Limon, Cusiana, and Cupiagua fields, the country's three largest.

Martinez said the government expected to finish the first quarter of 2009 with certified crude reserves of 4 billion bbl, up from 1.4 billion bbl.

Colombia's current oil production stands at around 600,000 b/d.

Contact Eric Watkins at hippalus@yahoo.com.

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