Petroamerica Decides to Case and Test the Langur-1X Exploration Well

Source: www.gulfoilandgas.com 12/9/2014, Location: South America

Petroamerica Oil Corp. has cased the Langur-1X exploration well with the objective of testing. The Langur-1X well is targeting a low-side fault closure prospect in the LLA19 Block, in the Llanos basin of Colombia .

The Langur-1X exploration well reached a total depth ("TD") of approximately 13,700 feet (measured depth) and based on encouraging oil shows and electrical logs obtained while drilling, the decision was made to case the well for testing. The electrical logs indicate approximately 15 feet of net oil pay (true vertical depth) over a gross interval of approximately 38 feet in the Gacheta C sands, with no oil-water contact. The Gacheta C Formation is one of the main producing reservoirs in Petroamerica's Las Maracas Field situated in the adjacent Los Ocarros Block. The sand thicknesses and reservoir properties of the Gacheta C Formation encountered in the Langur-1X well appear to be broadly similar to those existing at the Las Maracas Field.

The Company's preliminary estimate of the cost to drill the Langur-1X well to TD is approximately US$5.5 million , with the final cost still to be verified. The Company holds a 50% working interest in the LLA19 Block subject to earning and ANH (National Hydrocarbon Agency) approval. To earn this working interest, the Company will pay 100% of the cost to drill, test and complete or abandon the Langur-1X well.


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