Firms seek to expand Colombia's Rubiales

Petro Rubiales Energy Corp., Vancouver, BC, formerly Consolidated AGX Resources Corp., completed a $440 million (Can.) private placement and acquired 75% of Rubiales Holding Ltd. (RHL).

July 17, 2007

2 min read

By OGJ editors
HOUSTON, July 17 -- Petro Rubiales Energy Corp., Vancouver, BC, formerly Consolidated AGX Resources Corp., completed a $440 million (Can.) private placement and acquired 75% of Rubiales Holding Ltd. (RHL).

RHL owns 100% of Meta Petroleum Ltd., which has interests in the Rubiales, Piriri, and Quifa blocks in Colombia and produces more than 18,500 gross (5,000 net) b/d of 12.5° gravity oil from the Rubiales and Piriri association contracts in the Llanos basin (OGJ Online, Feb. 9, 2006).

Meta proposes to hike the heavy oil production rate to 66,000 b/d by drilling clusters of one vertical and four to five horizontal wells with downhole submersible pumps in giant Rubiales field in Meta Department. An estimated 200 new wells are required to boost output to more than 126,000 b/d.

The field produces from the Tertiary Carbonera formation at less than 3,000 ft. The association contracts remain in force until July 2016.

A pipeline to Cusiana Station in Casanare Department from Rubiales field is needed to replace trucking of crude and cut transportation cost. The 215-km line, with ultimate capacity of 200,000 b/d, is to be completed by June 2009.

Meanwhile, Petro Rubiales granted Pacific Stratus Energy Ltd. an option to earn up to 50% of the Petro Rubiales interest in Quifa by funding Petro Rubiales' share of exploration costs estimated at $5.3 million.