Canacol Energy Ltd.is pleased to provide the following update for the Picoplata 1 well in Colombia.
VMM3 Exploration and Exploitation ("E&P") Additional Contract, Middle Magdalena Valley Basin
ConocoPhillips Colombia Ventures Ltd. 80% (ConocoPhillips Colombia or Operator), Canacol Energy Ltd. 20%
The Picoplata 1 well was spud on October 16, 2014 and reached a total depth of 16,406 feet measured depth on January 29 th , 2015. The well was designed to test the petroleum potential of shales and limestones within the Cretaceous La Luna Formation, and the well encountered over 1200 feet ("ft") of potential oil bearing reservoirs. In December of 2016 ConocoPhillips Colombia, the operator of the contract, commenced completion and testing operations on the Picoplata 1 well. Five discrete formation injection tests and 3 hydraulic stimulations spanning the entire interval were performed in 3 shale reservoir intervals within the La Luna. The objective of the testing program was to collect information on the productive capability of the reservoir, the quality of the fluids contained within the reservoir, the formation pressure of the reservoir, and the ability of the reservoir to be hydraulically stimulated.
The operation, completed in July of 2017, was successful with all intervals that were hydraulically stimulated and tested producing light gravity crude oil with no indication of formation water. Individual slickwater hydraulic stimulation size in vertical well sections between 27 and 30 feet thick varied between 80,000 and 346,000 pounds, with resulting natural flows averaging between 19 to 120 barrels of oil per day with no formation water, over flow periods of 3 to 28 days.
The testing program achieved the objective of collecting the post stimulation production, pressure, and fluid data, as well as confirming the viability of hydraulically stimulating the reservoirs, and the Picoplata 1 well is currently being abandoned. Canacol and its partner ConocoPhillips Colombia are evaluating the technical data collected from this well to plan the next steps towards further evaluation of the La Luna on the block.
Canacol has 493,386 net acres across 5 blocks (3 operated and 2 non-operated) in this prospective La Luna shale oil fairway located in the Middle and Upper Magdalena Valley Basins of Colombia.
The Corporation shall provide further updates as new information becomes available.
Canacol is an exploration and production company with operations focused in Colombia, Ecuador, and Mexico. The Corporation's common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C, respectively.
Source: Canacol Energy Ltd.
Date: Aug 14, 2017