Well ABA-35 was drilled as part of the appraisal campaign in the north of the Abanico Field. The well found the top of the Upper Guadalupe Sand reservoir at 2,846ft measured depth (MD), or 1,640ft true vertical depth below sea level (TVDSS) and the top of the Lower Guadalupe sand reservoir at 3,096ft MD or 1,845ft TVDSS, for a total gross oil column of 205ft and 141ft net, respectively.

The petrophysical evaluation indicates net pay of 53ft and 108ft and average porosities of 20% and 23%, respectively, for those reservoirs for a total net pay of 161ft. Oil was found down to 1,985ft TVDSS at the base of Lower Guadalupe without encountering an oil-water contact.

A first production test carried on three perforated intervals in the Lower Guadalupe (3,198 – 3,170; 3,150 – 3,128 and 3,110 – 3100 feet MD) for a total perforated length of 60ft MD yielded an average daily rate of 450 barrels of fluids of 21 degrees API oil with a water cut of 3%.

This result incorporates 80 additional feet of hydrocarbon column to the reservoir, giving room for further delineation drilling toward the north. The well ABA-35 is the third consecutive appraisal well (previous wells were ABA-20 and ABA-34) drilled in the company’s attempt to extend the Abanico reservoir to the north.

As part of the exploration activity at the Quifa block, well QUIFA-13 was drilled slanted on prospect D, finding the top of the Carbonera Basal sands at 2,952ft MD, or 2,300ft TVDSS and the top of basement at 3,152ft MD. The petrophysical evaluation indicates net pay of 19ft, with an average porosity of 29% and oil-water contact at 2,982ft MD or 2,330ft TVDSS.

The company is now making preparations for completing the well as an oil producer. This well is the fifth consecutive appraisal well (previous reported wells on prospect D were Quifa-9, Rub-357, Rub-366 and Rub-251) drilled on prospect D since the discovery made by twell Rub-147 in 2008.

The company will continue to explore the flanks of prospects B and C to further understand the lower reaches of the structure where only the upper part of the crest was drilled previously. Prospects on the northern side of Quifa will be explored in the first quarter, 2010 as part of the 20 exploration/appraisal wells drilling campaign for the year.