LONDON (Alliance News) - Amerisur Resources PLC on Wednesday said short-term testing of the CPO-5 block in Colombia had encouraging initial flow rates with no indication of oil-water contact.
Shares in Amerisur were up 9.4% at 16.80 pence on Wednesday morning in London.
Initial short term testing of the Indico-1 well at CPO-5 flowed 35.9 degrees API oil to surface at a series of choke sizes from the lower sands of the Une formation at CPO-5, with a gross final flow rate of 4,530 barrels of fluid per day and water cut of 0.3%.
Amerisur, a South America-focused oil and gas producer, has a 30% interest in CPO-5, while ONGC Videsh Ltd holds the remaining 70% and is the operator.
Amerisur said its initial analysis indicates a 283 feet gross, 209 feet net, oil column is present in the lower sands at Indico-1.
Reservoir pressure data, Amerisur said, confirms an oil column throughout the lower sands reservoir with no indication of oil-water-contact.
The Indico-1 well will continue to produce under short-term testing while application is made for a long-term testing programme at the well.
Moreover, a four-well drill programme will begin immediately, aiming to determine the prospectivity of the lower sands. The programme is fully funded.
Amerisur Chief Executive John Wardle said that the lack of oil-water contact at Indico-1, as well as the initial flow rates, were "very encouraging indeed".
"These latest data from the well further indicate that we are developing an important play fairway within the [lower sands] unit of our large CPO-5 block, with significant upside both in the Indico accumulation, other structures to be drilled in the immediate future, as well as a long programme of exploitation within this sizeable block," Wardle said.
