TORONTO, Jan. 30, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) announced today that a wireline evaluation program has confirmed the previously announced light oil discovery in the Kangaroo-1 exploration well on block S-M-1101, in the Santos basin, offshore Brazil. The well was drilled as part of an agreement announced by the Company on September 18, 2012, as a minimum work commitment for both the S-M-1101 and S-M-1165 blocks, where the Company holds a 35% participating interest (subject to approval by Brazil's Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP)).
As announced in an operational update news release today by the operator of the blocks, Karoon Gas Australia Ltd. (ASX: KAR), (see Karoon website: www.karoongas.com.au), the wireline evaluation of the Eocene discovery zone in the Kangaroo-1 well, including petrophysical logs, core samples, fluid samples and flow tests all conducted on wireline, is nearing completion.
The wireline data confirms a 25 meter (gross) light oil column sitting above a well-defined oil water contact in the well. Multiple oil samples measuring 42 degree API were recovered to surface from two separate intervals in the zone. Petrophysical well logs indicate porosities in the 25 to 32% range, and permeabilities of 100 to 300 millidarcies have been determined from pressure flow tests. Multiple wireline core samples collected across the zone and to be analyzed in a laboratory will provide additional measurements of the reservoir zone's porosity and permeability characteristics.
"Although not the primary objective, this is an exciting discovery in our first exploration well drilled on the Karoon blocks in Brazil", commented Ronald Pantin, Chief Executive Officer of Pacific Rubiales. "At this stage we believe that the wireline testing and evaluation indicates that the Kangaroo-1 Eocene reservoir is of good quality, has the potential to flow light oil at commercial rates, and we feel very comfortable that this is a significant discovery. We are proceeding with plans to drill an appraisal well to further delineate the extent of the Kangaroo reservoir. In addition, the discovery of an oil bearing reservoir and an effective trap in the Eocene de-risks other undrilled Eocene structures identified on the Karoon blocks."When the current wireline operations are completed, the operator will relocate the rig to drill the Emu-1 exploration well to evaluate blocks S-M-1102 and S-M-1037, where the Company also holds a 35% participating interest (also subject to approval by the ANP).
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts