Pacific Rubiales Energy Corp. (Pacific Rubiales) is a producer of natural gas and heavy crude oil, owns Meta Petroleum Corp. (Meta), an oil branch which operates the Rubiales/Piriri and Quifa oil fields in the Llanos Basin in association with Ecopetrol; and Pacific Stratus Energy Colombia Corp. (Pacific Stratus), which operates the wholly owned La Creciente gas field in the northern part of Colombia and other light and medium oil fields.

Pacific Rubiales reports 3,700 bbl/d from test intervals at Brazil’s Kangaroo-2 well

Tue 10:37 am by Mourad Haroutunian

Pacific Rubiales Energy (TSE:PRE) advanced in morning trades after the Canada-based oil company focused on Colombia reported initial test results in the Kangaroo-2 appraisal well, located in the shallow offshore, Santos Basin, Brazil. The company also reported successful exploration wells drilled in Colombia and Peru.

Shares climbed 8.7 percent to C$7.82 at 10:10 a.m. in Toronto, paring this year’s slump to 57 percent.

The Kangaroo-2 appraisal, which well was drilled in Block S-M-1165, approximately 300 meters up-dip from the Kangaroo-1 discovery well, confirmed a 820 foot gross (442 foot net) oil column in Cretaceous and Paleocene aged reservoirs in the structure, the Toronto-based company said in a statement today.

The company has a 35 percent participating interest in the wells and five surrounding blocks. Karoon Gas Australia (ASX:KAR) holds the remaining 65 percent interest and is operator.

Production testing was conducted over a 36-hour flow period across an initial 27 metre lower interval in the target reservoir.

A maximum oil flow rate of 3,360 bbl/d (stabilised rate of 2,300 bbl/d) was achieved through a 44/64" choke with a flowing tubing pressure of 690 psi and a gas-oil-ratio of 620 cf/bbl, the company said.

Following a 57-hour shut-in pressure build-up period, a second test was conducted with an additional 40 metres opened to flow. In this second test, a maximum flow of 3,700 bbl/d (stabilised rate of 3,300 bbl/d) 38° API oil was attained through a 1" choke with a flowing tubing pressure of 430 psi, a GOR of 650 cf/bbl, with no CO2, H2S, sand or water produced, over a 12 hour test period.

A third test of intervals higher in the reservoir is expected to start within the next seven days, Pacific said. A decision on a potential side-track program will be made following the completion of testing in the well bore. Karoon is evaluating commercial options and early production strategies for the Kangaroo structure, as a result of these tests.

Following completion of all operations in the Kangaroo-2 well, the rig will move to drill the separate Kangaroo West prospect, located approximately 4.5 kilometres from Kangaroo-2, on the western side of the Kangaroo salt structure.

"We are very pleased with the flow results of the first test interval in the Kangaroo-2 appraisal well, which confirms the significant discovery status of the Kangaroo prospect on our blocks in the offshore Santos Basin, in Brazil,” Ronald Pantin , Chief Executive Officer of the company, said.

“Testing is ongoing, but initial analysis by the operator suggests that reservoir characteristics in the structure are excellent and would support flow rates of 6,000 to 8,000 bbl/d in a vertical producing well, and higher rates in a horizontal well bore."

The company said that the results from Kangaroo-2 complete “a very successful” year of exploration. Over 10,000 bbl/d of new net light oil production in Colombia and Peru have been delivered through the drill bit this year from successful exploration wells and the company had additional barrels behind the pipe from recently drilled wells.

“These results demonstrate the quality and value of our exploration portfolio and contribute to our net production which is expected to exit the year at between 151 to 152 Mboe/d," Pantin said.