Preliminary production test results from Colombia
Parkcrest Explorations Ltd PKC
Shares issued 11,207,637 May 15 close $1.10
Tue 19 May 98 News Release
An anonymous director reports
Parkcrest has received the preliminary results of the production test of
the Estero No. 3 well on the Palo Blanco discovery field within the 210,000
acre Alcaravati association contract area in the Llanos basin of Colombia.
Indications are the Ubaque formation is possibly a barrier bar or island
stratigraphic trap which would extend significantly the potential size of
this field to cover 4,000 to 6,000 acres of closure instead of the previous
estimate of 1,200 acres. 3D seismic processing and interpretation is under
way and will clarify the potential. Parkcrest holds a 25 per cent
beneficial interest in this discovery field where the first well, Estero
No. 1 tested at 4,116 bopd from the Ubaque formation.
The two zones tested, known as the Upper and Middle Ubaque have a combined
thickness of approximately 50 feet. During preliminary testing the well
produced oil from these intervals at a combined rate of 2,036 bopd with
significant water produced from the Middle Ubaque. Previously, Harken de
Colombia, the operator, produced oil from the Upper Ubaque formation in the
production test of the previous Estero No. 1 discovery well without testing
the Middle Ubaque.
In addition to these two zones, Harken will continue testing in this Estero
No. 3 well two additional uphole potential productive formations, the
Guadalupe and Mirador, which tests should take several weeks to complete.
Harken has tested the deeper Paleozoic formation and has not yet proven it
to be commercial. Parkcrest believes this may be due to presence of wet
zones tested along with oil zones within the large 200 foot interval which
was tested.
Harken plans to construct permanent road and production facilities to allow
year-round drilling activities on the Palo Blanco field beginning in late
1998. Due to heavy rains increasing in the region, Harken has elected to
delay final production tests of the Canacabare No. 1 well until the dry
season in the fourth quarter of this year. Wireline log data analysis
indicates a net productive thickness of approximately 90 feet in the three
formation to be tested.
Plans are to begin selling crude oil production from Palo Blanco by
trucking operations as soon as the final Estero No. 3 production tests are
completed.
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