FIELD ACTIVITIES / International Rochester Energy Announces
Expansion Potential of Palo Blanco Field
TSE SYMBOL: ROH
MAY 20, 1998
VANCOUVER, BRITISH COLUMBIA--International Rochester Energy Corp.
(ROH) announced today the preliminary results of the production
testing of Estero no. 3 well located on Palo Blanco Field located
in the Alcaravan Association Contract Area in the Llanos Basin of
Colombia. Harken Energy Corp. (AMEX: HEC), the Company's joint
venture partner and operator has reported:
"During drilling of the well Harken has encountered a coal seam
creating a stratigraphic formation which increases the likely size
and potential recoverable reserves of the Palo Blanco field by 200
to 400 percent.
The two zones tested, known as the Upper and Middle Ubaque have
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. Earlier production test of the previously drilled Estero
no. 1 discovery well resulted in oil production from the Upper
Ubaque formation but did not include a test of the Middle Ubaque.
In addition to these two zones, Harken will be testing in this
Estero no. 3 well two additional potentially productive
formations, the Guadalupe and Mirador, which tests should take
several weeks to complete. Harken has tested the deeper Paleozoic
formation and found it to be noncommercial.
Harken plans to construct permanent road and production facilities
to allow year-round drilling activities on the Palo Blanco field
beginning in late 1998. Harken also announced that due to heavy
rains increasing in the region, it has elected to delay final
production tests of the Canacabare no. 1 well until the dry season
in the fourth quarter of this year. Harken had announced earlier
that wireline log data analysis indicated a net productive
thickness of approximately 90 feet in the three formations to be
tested in this well."
Rochester's President, Philip J. Walsh stated "we are encouraged
by what appears to be a significant increase in the overall size
of the Palo Blanco Field and look forward to confirmation of this
when the 3-D seismic report is received. We also look forward to
the test results from the Guadalupe and Mirador formations."
Trucking of oil from the Palo Blanco Field will begin as soon as
the testing has been completed on the Estero no. 3 well.
Rochester owns a 25 percent beneficial interest in the Alcaravan
Association Contract.
Events to Monitor
Second Quarter 1998:
- Additional testing on Estero no. 3 well
- 3-D seismic report
- Trucked production commences
Third and Fourth Quarter 1998:
- Palo Blanco Phase I pipeline construction and production
- Production testing of Canacabare no. 1 well
- Drilling additional Palo Blanco well - Mirador Norte no. 1 well
Note: The current schedule of field developments is subject to
change due to numerous factors, some of which are beyond the
Company's control, including permitting, equipment scheduling,
contiguous area drilling activity, seismic acquisition and
weather.
International Rochester Energy is a Canadian based oil and gas
exploration company and is participating in the exploration and
development of the 210,000 acre Alcaravan Association Contract and
the 32,000 acre Miradores Association Contract located in the
Llanos Basin of Central Colombia. The Company is also pursuing
other, high potential, international oil and gas exploration
opportunities.
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