FIELD ACTIVITIES / Ram Petroleums in Colombia
RAM PETROLEUMS LIMITED AIRU-1 -- PRODUCTION TESTING
Listed: The Toronto Stock Exchange
Trading Symbol: RPL.A
TORONTO, June 18 /CNW/ - Ram Petroleums Limited announces that it has
received an interpretation from Ecopetrol, the Colombian state oil company, of
the pressure information obtained during testing of the Airu-1 discovery well
drilled on its 321,000 acre Rio Putumayo Association Contract in which Ram has
a 100% working interest. An Ecopetrol engineer and Ram's engineer were present
at the well for all logging and testing operations conducted. Although
attempts at testing the well were complicated by mechanical problems,
sufficient data was retrieved to estimate the productive capacity of the
interval from 6022 feet to 6032 feet. The productive capacity of this interval
is between 541 and 566 barrels of oil per day according to these calculations.
No formation water has been recovered from this interval and the oil produced
was high quality light crude of 29 API gravity. Ram management feels that
these results accurately reflect the potential of this interval in its current
condition, but that a substantially greater flow rate can be achieved by
further completion work. Perforating the well bore below the ten feet
currently perforated, increasing the number of shot holes in the existing
interval or a chemical treatment of the open interval are options to increase
the well's flow rate.
The Airu-1 well has established the presence of a third productive
structure on the Rio Putumayo Association block. The previously drilled
structures are the Mandur-4/Caiman-4 structure, discovered by Texaco in 1967,
and the Mecaya-1 structure, discovered by Ecopetrol in 1989. Estimated
recoverable reserves from these three structures are in excess of ten million
barrels. Development of these reserves is economic with a $12.00 price per
barrel for West Texas Intermediate and a ten well development program with
initial production rates of 500 barrels of oil per day per well.
Ram is currently discussing possible joint venture or business
combinations which would allow field development to continue. Ram's next
location is eight kilometers south of Airu-1 and is bounded on the north by an
east-west wrench fault which may provide a permeability barrier in the
sandstone, greatly increasing potential reserves.
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For further information: please contact Richard Opekar, President at
(416) 362-8885, Fax (416) 362-8601, website www.rampetroleums.com
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