LONDON (Alliance News) - Amerisur Resources PLC on Monday confirmed that Indico-1 well in Colombia reached target depth of 10,604 feet and encountered the Lower Sands of the Une formation.
Shares in Amerisur Resources were up 14% at 13.46 pence each in morning trade.
The South America focused oil and gas producer, which owns 30% non-operated working interest in the Indico-1 well, said the Lower Sands package is the same formation which holds the 120 feet oil column discovered at nearby Mariposa.
The Mariposa well has been producing at a stable rate of around 3,200 barrels of oil per day in natural flow for over a year.
Initial analysis of Indico-1 well indicates a 283 feet gross, 209 feet net, oil column present in the Lower Sands formation, Amerisur said. The company now plans to acquire further wireline logging data, including pressures and samples across the reservoir.
Once operations are complete at Indico-1 well, Amerisur plans to move the rig to drill the Sol-1 well, which is a further 6.5 kilometres south of Indico-1. The Sol-1 well also will target the Lower Sands package as encountered in Mariposa-1 and Indico-1.
"The results of the drilling have significantly exceeded our expectations in this respect and of course the very significant oil column encountered means we will have to review, with our partner ONGC Videsh, the resources associated with the Indico structure. The fact that no oil-water contact was encountered is also very positive for the eventual size of recoverable reserves within the structure," said Amerisur Chief Executive John Wardle.
"Naturally, given this result, the company and our partner will be reviewing options for further appraisal wells into the Indico structure in the short term, which will be required to further extend and define the resources encountered."
