Petrodorado Energy (PDQ-V) April 21, '14 has provided an operational update with projected plans for 2014.
Operations update
The board of directors and the new executive management team have now completed a thorough review of the company and its operations, as previously announced within the Oct. 22, 2013, press release.
The review generated an asset prioritization with a schedule of planned activities intended to maximize shareholder value. One of management's other main objectives was to also work diligently to improve partner relations and enhance co-operation levels with visible results. Management believes these objectives will be realized by way of the projected plans outlined below for each exploration block.
2014 capital plan
For the remainder of 2014, Petrodorado plans a capital investment program of $15.8-million (U.S.), fully financed with funds on hand, mainly focused on the drilling, workover and 3-D seismic activities in the CPO-5 block.
Highlights of the 2014 plan include:
- Acquire and evaluate the 2014 3-D seismic data on the CPO-5 block, which is on trend with 10 new discoveries;
- Drill a new Loto production well from the existing Loto platform;
- Exit the year with production from the CPO-5 block;
- Resume activity on La Maye and work with partners to restart the exploration program, beginning with a seismic acquisition campaign;
- Implement a monetization plan for the Kreyenhagen heavy oil asset in California, once identified.
CPO-5 block
The company and the operator of CPO-5, have plans to:
- Conduct a workover on the Loto-1 discovery well to repair the poor cement bond over the Mirador reservoir, with the objectives of retesting the multiple intervals in the Mirador and evaluating the potential for a long-term production test;
- Acquire a 3-D seismic survey of approximately 400 square kilometres over the northwest corner of the CPO-5 block, adjacent to the very prolific Guataquia, Corcel and Cabrestero blocks. This 3-D survey will also cover the Loto and Kamal structures, which both tested oil;
- Drill an offset Loto production well in 2014 from the same platform as the Loto-1 well that will enable characterization of the initial production response and subsequently support the determination of recoverable reserves;
- Work with the operator on a produced water management strategy in anticipation of the successful workover of Loto-1 and the drilling of the offset Loto production well.
As a benchmark, the offset blocks of Guataquia and Corcel cover 106 square kilometres and have produced over 39 million barrels of oil, equating to 92,000 barrels per square kilometre.
Furthermore, the operator of CPO-5 has completed the abandonment of the Kamal-1 well, which tested non-economic volumes of hydrocarbons, to comply with Colombian regulations.
Talora block
The company has entered into the second postexploration phase with the National Hydrocarbon Agency of Colombia (ANH) on the Talora block, under which the joint venture partners have committed to one additional exploration well by July, 2015. Furthermore, the company is finalizing the Talora block evaluation program report for the Verdal evaluation area and will subsequently formulate a development plan with the joint venture partners.
La Maye block
The Noelia-1 well was drilled on the La Maye block in October, 2009, with operations being subsequently suspended due to flooding conditions. In January of this year, the operator of the block informed the ANH that the Noelia-1 well did not encounter commercial quantities of hydrocarbons and that the La Maye joint venture partners have agreed to a 2014 seismic acquisition program that will be acquired in the second half of 2014, subject to ANH approval.
California
Testing is continuing on the Kreyenhagen 2-33 well, with current results proving to be in line with expected cold flow rates of oil and water. As announced in a previous press release, the company has decided to reduce its exposure to and capital requirements for these exploration activities in California. Ultimately, the company is looking to identify possible monetization options for these heavy oil assets.
Gregg Vernon, director, president and chief executive officer
"The work done to conduct a detailed review of the assets and options for Petrodorado has resulted in an exciting program for the balance of 2014, improved relations with our partners, and created a solid platform for rebuilding our company step by step. The team at Petrodorado looks forward to providing updates on the progress of the program as the year progresses." |
