Business
Northwest Peru Update
Northwest Peru Update.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n Gold Oil PLC\n09 May 2007\n\n\nFor Immediate Release 9th May 2007\n\n\n Gold Oil plc ('Gold') update on Operations on their\n Onshore Block XXI Northwest Peru\n\nThe San Alberto-1X wild cat well was drilled in July/August 2006 to a depth of\n5,113 feet to explore the Tertiary Verdun sands and the lower fractured\nPalaeozoic quartzites both of which produce gas and oil, respectively, in the\nsurrounding area. The location was decided upon based on an aeromagnetic survey\nthat showed a major Palaeozoic structural high up-dip of Olympic's La Casita gas\nfield 20 - 40 Kms to the west and PetroTech's offshore San Pedro oil field 50\nKms to the west. It was assumed that this Palaeozoic high would have a\nconformable Tertiary structure.\n\nLogging, drilling results and regional information showed 315 gross feet of\nhydrocarbon bearing sands in the Verdun and 250 gross feet of hydrocarbon\nbearing sands in the Palaeozoic.\n\nThe decision was taken to production test these hydrocarbon bearing sands in\nboth the Verdun and the Palaeozoic, but despite many attempts to curb the influx\nof water from Palaeozoic sands at the base of the well it was not possible to\nget hydrocarbons to the surface. The well was eventually plugged and abandoned\nin late November 2006. Following an intensive review of the well results the\nCompany has drawn the conclusion that the initial influx of water from below the\noil water contact in the lower Palaeozoic invaded the hydrocarbon bearing zones\nand prevented the recovery of hydrocarbons to the surface. This water influx was\nmade worse by the well being shut-in for six weeks while waiting for a larger\nrig.\n\nWith eight of the nine criteria required for producing hydrocarbons being\npresent, the only one missing was getting hydrocarbons to the surface, the\nCompany is very excited about the Block.\n\nSince the well was abandoned the Company has been evaluating all the data to\ndecide what to do next. We cannot define the Verdun structure without more\nshallow geophysical data as the aeromagnetic survey is only really valid for the\ntop Palaeozoic. After considerable thought the Company has decided that the best\napproach would be to attempt to define the largest subsurface accumulation of\nhydrocarbons in and around the structural high close by the San Alberto 1 well\nat the lowest cost possible. Seismi...