FIELD ACTIVITIES / Harken Resources reports Successful Production Test
DALLAS, April 27 /CNW/ -- Harken Energy Corporation (Amex: HEC)
("Harken"), announced today the results of its production test of the Olivo #1
well located in the Bolivar Association Contract Area in the Middle Magdalena
Basin of Colombia. The well tested at a production rate of 10,800 bopd with
no water from the Middle Cretaceous naturally fractured Salada (Lower La Luna)
formation. Harken believes the production rate was limited by the size of
pump and production equipment used. An independent reservoir engineering firm
estimates the Olivo #1 and the previously completed Catalina #1 are each
capable of producing at rates in excess of 20,000 bopd with larger production
equipment.
The Olivo #1 well was drilled utilizing the same underbalanced horizontal
drilling technology that Harken pioneered in Colombia to drill the Catalina
#1. Harken used its experience with underbalanced horizontal drilling to
drill 6,029 feet of total horizontal distance as originally planned from the
Olivo #1 surface location. Overall total length of the wellbore is 10,215
feet.
As a result of this successful production test in the Olivo #l, Harken
plans to extend the use of the underbalanced horizontal drilling technology to
accelerate exploration and development of Rosa Blanca and La Luna reservoirs
in the Bolivar Contract Area. This would be accomplished by assigning
additional drilling equipment to this contract area later this year. Harken
intends to move the drilling rig used for the Olivo #1 to its Cambulos
Association Contract Area to begin drilling the Islero #1 as soon as possible.
"The actual production rate of Olivo #1 was limited by the production
equipment even though Harken used the largest pumping equipment available in
Colombia. Nevertheless, this successful production test of the Olivo #1 well
demonstrates the prolific potential of the La Luna formation and the Bolivar
Association Contract," stated Mikel D. Faulkner, Harken's Chairman. He added,
"As we said in the past, we believe the majority of the 250,000 acre Bolivar
Contract Area is prospective; therefore, we will escalate our plans and focus
more drilling equipment on the Bolivar area. We will import larger equipment
and construct larger facilities in future Bolivar wells to avoid such
production capacity limitations."
Harken Energy Corporation explores for, develops and produces oil and gas
reserves domestically and internationally. Certain statements in this news
release regarding future expectations and plans for international oil and gas
exploration and development may be regarded as "forward looking statements"
within the meaning of the Securities Litigation Reform Act. They are subject
to various risks, such as the inherent uncertainties in interpreting
engineering data related to underground accumulations of oil and gas, timing
and capital availability, discussed in detail in the Company's SEC filings,
including the Annual Report on Form 10-K for the year ended December 31, 1997.
Actual results may vary materially. The production rates described above are
based upon a very limited production period. Such production rates are not
necessarily indicative of flow rates that might be achieved if the well is
ultimately determined to be commercially productive.
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