The company said that the Rancho Hermoso-5 well was drilled by Canacol Energy with the intent of testing the southern extension of the Rancho Hermoso field. The well reached a depth of 9,587ft (9,187ft, vertical), crossing the potential reservoirs of Mirador, Los Cuervos and Guadalupe.
The results of the initial tests carried out by the operator report that the Guadalupe formation reached a production of 3,990 barrels of oil per day 33 API degrees and approximately 400,000 cubic feet of gas per day, and Los Cuervos formation (located above the Guadalupe formation) reached a production of 4,434 barrels of oil per day, 36 API degrees and 400,000 cubic feet of gas per day.
The Rancho Hermoso-5 well was drilled pursuant to various contracts that includes the Casanare Area Risk Production Service contract, which was entered into on July 22, 1999 and covers the Mirador formation. As per the contract, Ecopetrol has a 100% production share and pays the operator a fee.
The contracts also include the Casanare Area, Rancho Hermoso participation agreement, which was entered into on April 30, 2007 and covers the Carbonera, Guadalupe, Barco, Cuervo and Ubaque formations. Under this contract, Ecopetrol has a 70% production share and expenses and associated investments are to be made at the expense of the operator, Rancho Hermoso.
The operator will continue carrying out initial tests at the Rancho Hermoso-5 well to determine the potential of these formations and the completion and production strategy for them.
