Business
Operational Update and 2014 Guidance
Operational Update and 2014 Guidance.
About this update from Corcel Plc
[{"type":"text","content":"\n \nCaracal Energy Provides Operational Update and 2014 Guidance\n\nCALGARY, Jan. 20, 2014 /CNW/ - Caracal Energy Inc. (LSE: CRCL) (\"Caracal\nEnergy\" or the \"Company\") provides an operational update on its activities in\nChad and 2014 guidance.\n\nExecutive Summary\n\n- Production has increased to approximately 12,000 gross barrels oil\nper day (\"bopd\");\n\n- On track to achieve first oil lifting in Q1 2014;\n\n- Commissioned the Southern Processing Terminal (\"SPT\");\n\n- Continued construction of the Mangara Central Processing Facility\n(the \"CPF\"), 12 inch oil pipeline and 6 inch gas pipeline, all of which are\nexpected to be completed in Q1 2014;\n\n- Ordered long lead facilities for the Badila expansion;\n\n- Placed Badila-4 and Badila-5 on production at maximum producing rates\nof approximately 1,000 and 5,000 bopd respectively;\n\n- Mangara-6 development well was spud on November 19, 2013 and drilled\nto a depth of 3,109 meters (\"m\"). Petrophysical evaluation in the Lower\nCretaceous C sands (\"C sands\") proved the zone to be oil bearing. A Drill Stem\nTest (\"DST\") over the Lower Cretaceous E sands (\"E sands\") successfully flowed\noil to surface. The Company cored 18m of E sand, which showed clear signs of\noil pay. The Company believes that the E sands could have a positive impact on\nreserves;\n\n- Production flow tests conducted over the Krim-1 C sands measured\nrates as high as 1,470 bopd and the D sands flow tested at up to 702 bopd. No\nreserves were assigned to these C and D sands in the report by McDaniel &\nAssociates Consultants Ltd., an independent qualified reserves evaluator,\n(\"McDaniel\")(1);\n\n- Drilled and cased the Bitanda-1 exploration well, which was spud on\nDecember 5, 2013, and was rig released on December 31, 2013. Based on\npetrophysical interpretation, there is a potential of 38 m of net reservoir\ninterval in the Upper Cretaceous M sands and 66 m in the D sands, which will be\nsubsequently tested;\n\n- Commenced the 2014 2D and 3D seismic acquisition program;\n\n- Finalized rig contracts and received definitive rig schedule from the\nrig contractor for an additional four drilling rigs and two completion rigs,\nbringing the total to six drilling rigs and three completion rigs;\n\n- 2014 guidance of $475 -$525 million net capital expenditures ($375\n-$425 million net of the ...