FULL DISCLOSURE: This is sponsored content for LNG Energy Group.
LNG Energy Group (TSXV: LNGE) is reporting success in the drilling of the Bullerengue Oeste-5, or BO-5, within the Sinu San Jacinto Norte 1 block. Initial production tests are currently underway following the successful drilling of the well.
The well, spud on October 1, reached a total depth of 7,542 feet, and is said to have intersected the Lower Porquero formation as well as the targeted Chengue formation. Production testing targeted the latter formation, with testing occurring for a period of thirty days.
“We are extremely pleased to announce we have successfully drilled the BO-5 well, proving the presence of gas and oil at the northwest, undrilled compartment of the Bullerengue field. This discovery is important because it allows for the identification of a new accumulation of crude oil and gas to the west of the existing Bullerengue field in the hanging block of the normal fault, which is considered the main limit of the field,” commented Pablo Navarro, CEO of LNG Energy Group.
Initial testing, utilizing chokes between 18/64 and 22/64 inches, came in at 1.0 to 2.5 MMcf/d of natural gas and 30 to 80 bbl/d of oil. The well is notably already connected to existing field facilities, with volumes able to be delivered to market.
READ: LNG Energy Posts Q3 Revenue Of $4.0 Million, Positive Net Income
“This discovery, which is associated with a structure near the Bullerengue field, should allow for the addition of new gas and crude oil reserves. The presence of both natural gas and oil production is very promising in terms of short- and long-term production growth opportunities,” continued Navarro.
The SSJN-1 block consists of 226,000 acres of claims in the north of Colombia. LNG Energy, prior to the drilling of BO-5, had production from the well amounting to 36 MMcf/d, with the asset boasting 129 Bcfe of net 3P reserves. LNG has a 50% working interest in the claim block, with the remainder held by Hocol, a subsidiary of Ecopetrol, S.A.
LNG Energy last traded at $0.255 on the TSX Venture.
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