CALGARY, Sept. 30 /CNW/ - Adulis Resources Inc. (TSX-V: ADE; AIM: ADS),
the Colombian focused independent oil and gas exploration and production
company, today announces an update on operations. Adulis operates in Colombia
through Solana Petroleum Exploration Colombia Limited ("Solana"), Adulis'
wholly owned subsidiary.
EXPLORATION UPDATE
Puma Well
The Puma well, which was the subject of a recent press release, was
successfully sidetracked and re-drilled to a depth of 11,940 feet. The top of
the objective Caballos was encountered at 11,910 feet, and the well is
currently being logged. Once logging is completed, casing will be set at the
current total depth to isolate the Villetta section. Drilling will then be
resumed through the target Caballos sands. It is currently anticipated that
the well will have penetrated the objective sand and the logging of that unit
will be complete in the next few weeks. Subsequently, a decision will be made
as to whether the running of completion casing and drill stem testing is
warranted.
The Puma well is the second well drilled under the terms of a Shared Risk
Contract between Ecopetrol and Ramshorn International ("Ramshorn"). Solana has
a commercial agreement with Ramshorn whereby Solana pays 96% of Ramshorn's
share of the initial well cost to casing point to earn 75% of Ramshorn's
working interest. Since Ramshorn has a 30% working interest in the Puma
project, the net Solana share of any production ultimately obtained from this
block will be 18.75%.
Balu Well - Abandoned
The Balu well, located in the Middle Magdalena basin, was drilled to a
final total depth of 1775 feet in intrusive basement rocks, and logged. After
the completion of log analysis it was confirmed that only traces of
hydrocarbons existed in the two primary objectives. Therefore the well has
been abandoned. The well was drilled on time and on budget with a total cost
of approximately $US 750,000 all of which was borne by Adulis.
Guariquies Well - Spudded
The Guariquies well was spudded on September 28, 2005 and is currently
drilling in the uphole section. This well is targeted at reservoirs at
approximately 10,000 feet and is expected to take approximately 60 days to
drill. The total dry hole cost of the well to Adulis will be approximately
$US 4,600,000.
The Guariquies well is the third well to be drilled under the terms of a
Shared Risk Contract between Ecopetrol and Ramshorn. Solana has a commercial
agreement with Ramshorn whereby Solana pays 96% of Ramshorn's share of the
initial well cost to casing point to earn 75% of Ramshorn's working interest.
Since Ramshorn has a 45% working interest in the Guariquies project, the net
Solana share of any production ultimately obtained from this block will be
33.75%.
PRODUCTION UPDATE
Bucaro 1 Well - Initial Production Results
The Bucaro 1 well, was flowed under natural flow conditions at the
request of the Colombian Ministry of Energy during the period September 23 to
26, 2005. The well produced a total of 480 barrels of 27 degree API oil over 3
days with an increasing water cut and ceased to flow at the end of the test
period. This well will now be completed with a jet pump and put on commercial
production with produced liquids treated on site and the oil trucked 140
kilometers to the sales point. After sufficient oil is produced to clean up
the formation a decision will be made as to whether to initiate a cement
squeeze to isolate water bearing zones from those which are oil producing and
whether to additionally perforate other zones in this well which appear to be
oil bearing on wireline logs.
Guayuyaco Field - Production Update
The Guayuyaco 2 well was recompleted to test the Lower U Sand in
compliance with a directive by the Colombian Ministry of Energy to obtain
information on all oil bearing zones. This well had previously produced up to
1130 Bopd of 28 degree API oil at low (7%) water cut from the T Sand. The
Lower U Sand is currently producing at approximately 720 Bopd of 27.5 degree
API oil at a low and decreasing water cut (currently 6%). Adulis receives a
net 32.2 % of Guayuyaco production after the deduction of operator and state
oil company share and royalty.
This release may contain forward looking statements within the meaning of
the "safe harbor" provisions of US laws. These statements are based on
management's current expectations and beliefs and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from those described in the forward looking statements. Adulis does not assume
any obligation to update any forward looking information contained in this
news release.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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