Colombia has awarded association contracts for three blocks covering a combined 750,00 acres in the prolific Llanos basin to a group led by Heritage Exploration & Production Co. Inc., Houston.
The two southern tracts, Algarrobo and Cano Guirripo, are about 50 km east of BP Exploration's highly touted Cusiana oil and gas discoveries, described as world class in scope (OGJ, Jan. 20, p. 68). Also, Algarrobo and Cano Guirripo are surrounded by a number of small fields operated by Ste. Nationale Elf Aquitaine with individual field reserves estimates of 5-20 million bbl of oil equivalent and producing at a combined rate of 32,000 b/d.
Cano Caranal contract area is about 165 km north of the southern tracts and about 25 km west of Cano Limon, Colombia's other world class oil field that returned the country to the status of net oil exporter in the 1980s.
In other Colombian action, Argosy Energy International, a unit of Garnet Resources Corp., Houston, plans in late February to begin drilling 1 Victoria wildcat at a location 1 mile east and 3 miles south, respectively, of its 1 Mary and 1 Miraflor discoveries (OGJ, Jan. 13, p. 25). Argosy plugged its 1 Florida wildcat in Colombia's Putumayo region after testing several unproductive sand intervals above 9,210 ft total depth. The wildcat is about 6 miles southeast of 1 Miraflor.
HERITAGE DETAILS
Terms of the Heritage group association contract call for 550 line km of seismic survey on the three blocks in the first year. The seismic program is expected to begin this month and be complete in April.
Two wells are to be drilled in the southern contract areas, the first in fourth quarter 1992 and the second in first quarter 1993. Another well could be drilled on Cano Caranal block in first quarter 1993, pending further assessment of the area's potential.
Production from the Elf operated fields surrounding Algarrobo and Cano Guirripo is transported via a 12 in., 50,000 b/d pipeline. Elf also plans to lay another crude oil pipeline in the region.
Santos Colombia Exploration Inc., a subsidiary of Santos Ltd., Adelaide, South Australia, will earn 50% interest in each of the three tracts from operator Heritage by funding part of the seismic surveys. The farmout agreement also allows Santos an option to acquire another 12.5% interest in each block.
Andex Energy Inc., subsidiary of Equitable Resources Inc., Pittsburgh, owns interests of 25-30% in the three blocks under farmouts from Heritage.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
