Emerald Energy Share Discussion Threads

[7kiwi] 22/10/2010 21:18

Gigante is better than I thought.

[efagie] 22/10/2010 17:07

i agree on mirto, though gigante has gone from a low of 820 to 3,189 for the first half of 2010. be interesting if there has been any increase. though maybe its limited by transport.

[7kiwi] 22/10/2010 16:55

Indeedy.

Essentially EEN's share of those reserves is a factor of 9 more.

So, 2P of 38mmbo and 2C of 64.7mmbo. With Cyclic steam injection on top.

2P NPV: $582m and 2C of $519m

NPV per barrel is not that brilliant, but nevertheless, if they'd not had the interruptions of the change of ownership, then the reserves might be a lot higher by now.

Mirto not going particularly well, and neither is Gigante, but I can't believe they sold the whole lot (including Syria) for just over £500m. There was plenty to go at.

[efagie] 22/10/2010 16:55

too right cap. i swore anyway when i saw the above. and they are still only using a 2.2b stoiip.

[captainfatcat] 22/10/2010 16:40

Thanks ken makes you wonder with good progress in Syria as well what might have been.

[efagie] 22/10/2010 16:11

News
Canacol Energy Ltd Announces 100% Increase in 2P Reserves at its Capella Discovery and Provides Update on Cyclic Steam Injection Pilot in Colombia
October 22, 2010
Canacol Energy Ltd Announces 100% Increase in 2P Reserves at its Capella Discovery and Provides Update on Cyclic Steam Injection Pilot in Colombia

CALGARY, ALBERTA- Canacol Energy Ltd. ("Canacol" or the "Corporation") is pleased to announce a 100% increase from 2009 to 2010 in its net after royalty proven and probable reserves from 2.1 to 4.2 million net barrels and a 227% increase in net associated NPV10 for its Capella heavy oil discovery in Colombia. Proven, probable and possible net reserves increased by 279% from 3.6 to 9.9 million net barrels, with net associated NPV10 increasing 644%. The increase in reserves is due to production performance, drilling results, and the performance of horizontal wells in the field. The Corporation is also pleased to report the preliminary results of the cyclic steam injection pilot, which resulted in a 330% increase in gross production from the Capella C5 well. It is important to note that the current reserves report considers only primary or "cold" production, and does not include any potential additional reserve recovery related to secondary thermal recovery.

Charle Gamba, President and CEO of the Corporation, commented "We are very pleased to have doubled our net proven and probable reserves to 4.2 million barrels at Capella, primarily through the production performance of the field over the last year, and to the success we have experienced using horizontal wells in the field to increase production and reserves capture. In addition, the success of the cyclic steam injection pilot, which saw a production rate increase of 330% from one of the existing vertical wells, may result in significant future reserves increases which are not accounted for in the current reserves report. With best estimate gross contingent resources after royalty of 71 million barrels of recoverable oil under primary recovery conditions, we anticipate adding significant reserves from Capella going forward, most especially through secondary thermal recovery. These results reflect the significant upside associated with the large exploration position Canacol has secured separately along trend of the Capella discovery on its 100% operated acreage."

Capella Reserves

The Corporation has a 10% working interest in the Capella heavy oil discovery, located on the Ombu Exploration and Production Contract in the Putumayo – Caguan Basin. The Corporations interest was earned through a farm-in with Emerald Energy Plc., the operator of the contract. The contract is operated under the terms defined by the Agencia Nacional de Hidrcarburos, whereby production is subject to a sliding scale royalty payable to the government. Royalty is determined by various production and reserves thresholds, and varies from a low of 8% to a high of 23%. The royalty level for Capella production is discounted by 25% due to the heavy nature of the crude. A total of 9 wells have been drilled in the Capella field to date, which include 8 verticals and 1 horizontal. Three additional wells (2 horizontals and 1 vertical) are planned to be drilled by year end.

The reserve and resource evaluations, effective June 30, 2010, were conducted by the company's independent reserve evaluator Degolyer and MacNaughton ("D&M"), and are in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. The reserves are provided on a net after royalty basis in units of barrels of oil (bbl) using a forecast price deck in US dollars. The estimated values may or may not represent the fair market value of the reserve estimates.

D&M derived both proven, probable, and possible reserves within a relatively small part of the structure that contains the wells drilled to date, and low case (C1), best case (C2), and high case (C3) estimates of unrisked contingent resources within the remaining undrilled portion of the field that does not yet contain well control. As appraisal and development wells are drilled into these areas, contingent resources may be reclassified as proven, probable, and possible reserves.

It is important to note that the reserves and resources assigned by D&M are derived under primary recovery (cold production) and do not take into account any benefit derived from secondary thermal recovery. Based on the preliminary results of the cyclic steam injection pilot thermal recovery may play a significant role in field development, with the potential to significantly increase recoverable reserves.

Net After Royalty Reserves and NPV10 Summary

6/302010
Category Reserves NPV10 (M BBLS) (MM US$)
Proven ..................1,190.... 17.3
Probable ................3,042.... 47.4
Proven and Probable..... 4,236.... 64.7
Possible................ 5,692.... 117.6
Total................... 9,928.... 182

In addition to proven, probable, and possible reserves, D&M also calculated unrisked contingent recoverable resources associated with areas not currently containing well control.

Net After Royalty Contingent Resources and NPV10 Summary

6/302010
Category.. Reserves.. NPV10
..........(M BBLS)... (MM US$)
C1 (Low)... 4,588..... 25.5
C2 (Best)...7,194 .....57.7
C3 (High)...10,675.... 88.7

Capella C5 Cyclic Steam Injection Results

A cyclic steam injection pilot involving the Capella C5 well is currently in progress. Approximately 1,900 tons of steam was injected into the Lower Mirador reservoir over a period of 18 days. The well was shut in for a period of 10 days to allow the steam to soak into the reservoir. Prior to steam injection, cold production from the well averaged 40 gross bopd during June and July of 2010, the well previously being one of the poorest producers at Capella. On September 30, 2010, immediately after the well was brought back on stream, production was 116 bopd, representing a 290 % increase in gross production rate compared to pre-injection production. Currently the well is producing at a rate of 132 bopd, or 330% that of pre-steam injection production. A cyclic steam injection pilot within the Upper Mirador reservoir is planned prior to year end using a different well in order to quantify the impact of steam on enhanced recovery in that zone.

The early results from the cyclic steam injection pilot indicate that the use of steam injection has a significant effect on enhancing the productivity of the wells compared to cold production, and that steam injection will likely play a significant role in increasing both the production rate and reserves of the Capella discovery. The results of the steam injection pilot were not incorporated into the June 2010 reserves report conducted by D&M.

Forward Plans

Three more wells at Capella are planned to be drilled during the remainder of 2010, with two planned as horizontals, and one as a vertical well. All of the information from the new wells, the final results of the steam injection pilot, and the 3D seismic will be used to formulate the go forward development program for the Capella discovery in 2011 and beyond.

[cyfalafwr] 13/10/2010 21:00

Maybe they should sell the water , 60p for a half litre bottle at my Tesco garage,slightly dearer than the diesel. lol.

Thanks for the update.Why do they still mention Emerald Energy plc ?

[captainfatcat] 12/10/2010 18:21

Thanks Ken for the Mirto update.

[efagie] 12/10/2010 16:55

2010-10-11

La Cortez Announces Preliminary of Mirto-2 Production Test Results
As announced in a prior release on September 23rd, 2010, the Mirto-2 well, reached its targeted depth of 11,604 feet on August 16th, 2010 and encountered the Villeta N sand interval at 10,562 feet MD (measured depth), and the Villeta U sand interval at 11,235 feet MD.
There were oil and gas shows in both the N and U sands during drilling operations. Together with Emerald Energy Plc, the operator of the Maranta Block, a decision was made to first test the U sand, and depending on test results and other information gathered, to make a decision whether to test the N sand.
The Mirto-2 well was perforated at the uppermost part of the U sand. During the 5 day production test period, the Villeta U sand interval produced on average 690 barrels of fluid per day (BFPD), with an average water cut of 95.9% (29 Barrels oil per day - BOPD of 31 degrees API oil - Gross). Crude oil production was increasing slowly during the test period reaching a total of 48.2 BOPD Gross with a water cut of 93.7% on the last day of testing.
These production test results are not in line with the information obtained while drilling. Oil and gas shows were seen during drilling and the core samples from the wellbore, indicated good oil saturation at the top of the sand upon inspection. Additionally, the results are inconsistent with initial production data of the adjacent Mirto-1 well.
Mirto-2 was drilled as a deviated well off the same location as Mirto-1 , with a TD approximately 1600 feet to the south-west of Mirto-1. �Initial test production data from Mirto-1 was approximately 731 BOPD Gross of 32.5 API oil. Logging and other information obtained during the drill stem test of Mirto-1 when correlated with long-term production data suggest that the reduction in production in Mirto-1 from initial volumes is potentially a consequence of operational problems encountered during testing and completion, rather than the formation being non oil bearing.
Consequently, Emerald and La Cortez have decided to obtain additional information on the Mirto-2 well aiming to determine the actual potential of the well. It is therefore planned to run cased-hole logs to confirm perforation position in depth and execute additional analysis of the core sample taken from the well while drilling. Depending upon evaluation of this new information, it will be determined whether to conduct additional production testing on the U sand or to temporarily isolate this interval and conduct production testing on the Villeta N sand which showed good oil and gas shows while drilling.
These proposed actions are expected to take place within the next three weeks. A service rig is being sent to the site and logging will begin in approximately two weeks when the service rig is mobilized and available water treatment capacity is secured.
Maranta Block. Based upon the preliminary test results of the Mirto-2 well, the drilling of the Agapanto-1 exploration well, (located approximately 1.70 kilometers to the south of the Mirto-1 and Mirto-2 location) has been postponed. The drilling of the Agapanto-1 well will depend upon the final analysis of the potential of this area once additional information from the Mirto-2 well is obtained.
Other exploration leads in the block are currently being evaluated as potential targets for further exploration activities. Similarly, the proposed second intervention on the Mirto-1 well has also been delayed until obtaining additional information on the Mirto-2 well. Production from Mirto-1 well is currently shut-in due to limited water treatment capacity at a nearby facility which is being re-conditioned. The Maranta block covers an area of 90,459 acres (36,608 hectares) in the foreland of the Putumayo Basin in southwest Colombia.

[dfgo] 24/9/2010 18:56

Ken

It was refering to FOGL

Falkland Oil & Gas
4Q10 – contract drillship.

1Q11 – drill the Loligo prospect in which it holds a 49% interest. Pre-drill gross estimates are 4,000 mmbls with a GCoS of 10%. Worth 748p/sh on a risked
basis and 7479p/sh on an unrisked basis.

2Q11 – drill the Hersilia prospect in which it holds a 49% interest. Pre-drill gross estimates are 1,300 mmbls with a GCoS of 10%. Worth 243p/sh on a risked
basis and 2431p/sh on an unrisked basis.

Falkland Oil and Gas (BUY, TP 248p)

[efagie] 24/9/2010 18:10

agree cap. spud 27/5/10.

[efagie] 24/9/2010 18:00

DFGO; though its from 15 sept. some of their target prices have been taken out already. ie, rkh 560p and des 160p. arg 63p

We initiate coverage
on Argos (BUY, TP 52p), Falkland Oil and Gas (BUY, TP 248p), Borders &
Southern (NEUTRAL, TP 101p), Desire Petroleum (BUY, TP 136p) and
Rockhopper (NEUTRAL, TP 359p).

[captainfatcat] 24/9/2010 17:51

Thanks DFGO will take a look over the weekend.

Ken, at last it seems to have taken an age and with testing still to be done.

[dfgo] 24/9/2010 17:47

cfc

EVO note for FOGL well worth reading

[efagie] 23/9/2010 18:36

at last.

La Cortez Announces Completion of Mirto #2 Well Underway

La Cortez Announces Completion of Mirto #2 Well Underway; Initial Testing to Be Initiated Within the Week
Provides Operational Update on Putamayo 4 and Catatumbo Blocks

BOGOTA, Colombia, Sept. 23 /PRNewswire/ -- La Cortez Energy, Inc. ("La Cortez") (OTC: LCTZ) is pleased to provide the following operational update:
Maranta Block.

Emerald Energy Plc. ("Emerald"), the operator of the Maranta Block where La Cortez will hold a 20% working interest has reached the intended depth of 11,590 feet MD (measured depth) for the Mirto-2 exploratory well. The Mirto-2 well targeted a depth of 11,604 feet in order to test the Villeta formation N, U, and T sands, which are prolific hydrocarbon producers in the Putumayo basin.

This well encountered the Villeta N sand interval at 10,562 feet MD (measured depth), and the Villeta U sand interval at 11,235 feet MD. There were oil and gas shows in both the N and U sands during drilling operations. The Villeta T sand was encountered at 11,438 feet with poor oil and gas shows. These sands were encountered very close to the initial well estimates for formation tops. Emerald and La Cortez have decided to complete the well and conduct an oil production test initially on the lower "U" sand. Based upon the results of this test and other information gathered from the well geology, the "N" sand could be subsequently tested.

The drilling rig will be released shortly after completion of the test and will then be moved to the Agapanto-1 exploration well location [approximately 1.70 kilometers to the south of the Mirto 1 and Mirto 2 location] to initiate drilling operations. The Agapanto-1 well will be drilled to an estimated target measured depth of 11,400 feet in order to test the south part of the structure and the Villeta formation N, U, and T sands. It is expected that drilling operations will start by the end of October and will last for the following two months.

The Mirto-1 well is currently producing at an average rate of 60 bopd of good quality 31.5 degrees API oil with a water cut of approximately 88%. We are planning to carry out a second intervention in the well after drilling operations on the Mirto-2 well have been completed. The purpose of this workover operation is to make additional perforations in the "U" sand interval in order to increase productivity of the well. During production testing on this well, the Villeta U sand interval produced an average oil rate of 731 barrels per day of 32.5o API crude over a 48 hour period with a low average water production (water cut of 26 %) under artificial lift while the Villeta N sand, produced oil of 15 degrees API (American Petroleum Institute) at an average rate of 247 bopd also over a 48 hour period and under artificial lift, with an average water cut of 64%.

The Maranta block covers an area of 90,459 acres (36,608 hectares) in the foreland of the Putumayo Basin in southwest Colombia. Emerald signed its E&P contract with the Agencia Nacional de Hidrocarburos ("ANH"), Colombia's hydrocarbon regulatory agency. La Cortez has fulfilled its payment obligations to Emerald for the drilling and completion of the Mirto-1 well, La Cortez has asked Emerald to file a request with the ANH for the assignment of the 20% working interest in the Maranta block to La Cortez and to assist La Cortez in obtaining its working interest from the ANH through reasonable means. Emerald will pursue this request as soon as it receives the ANH required support documentation from La Cortez, which is expected to be within the next two weeks.

[264091] 13/9/2010 10:11

I wonder if the timing is linked with SEY drilling timescale somehow?

[efagie] 09/9/2010 15:41

similar to cap 6. cap 2 at some 23ft.
biggest find in colombia in 25 years.

[efagie] 09/9/2010 15:34

agree kiwi, the c f/10 numbers to be improved with steam injection too.

nice numbers, will have to check back on the earlier wells netpay.

true vertical depth and encountered 75 ft of net oil pay within the Upper Mirador sandstone reservoir

[7kiwi] 09/9/2010 15:27

Looking good at Capella, less good at Romero for now.

[efagie] 09/9/2010 15:22

new presentation. sept 8.

[efagie] 09/9/2010 15:11

ombu news.

News
Provides Operations Update at its Capella Heavy Oil Discovery in Colombia
September 09, 2010
Canacol Energy Ltd. ("Canacol" or the "Corporation") is pleased to announce that drilling and testing of the first horizontal well, Capella FH-10, and the Romero A1 well, has been completed, and that the steam injection pilot has commenced. The Corporation has also completed the acquisition and processing of 184 square kilometers of 3D seismic over the discovery, and has commenced the drilling of the Capella L-11 well. The Capella discovery is located on the Ombu E&P Contract in the Caguan – Putumayo basin of southern Colombia. The Corporation, through a farm in with Emerald Energy Plc., earned a 10% working interest in the Contract through the drilling of the Capella 1 discovery well in July 2008. The Ombu E&P Contract was awarded to the operator by the Agencia Nacional de Hidrocarburos in 2007. The Corporation has participated in the drilling of 8 wells into the discovery to date. Canacol also has a 100% operated working interest in 3 offsetting exploration contracts awarded directly to the Corporation in 2009 and 2010, and holds over 1.6 million net exploration acres in the area.

Charle Gamba, President and CEO of the Corporation, comments "We are very pleased with the results of the Capella FH-10 horizontal well, which has tested at a gross rate up to 437 bopd, significantly higher than that of a vertical well in the field. We are confident that horizontal wells will play an important part in the future development of the field, having now demonstrated the capability of providing significantly more production than vertical wells. We are also anticipating the results of the steam injection pilot, which could have the potential to double the recoverable reserves associated with the discovery. The results from the horizontal well, the steam injection pilot, the 3D seismic, and the remaining 5 wells to be drilled in the field this year will be used to formulate the development plan for the field going forward into 2011 and beyond. Aside from continuing to develop the potential of the Capella discovery, the Corporation is also positioned to execute a significant exploration program on its three 100% working interest operated exploration blocks offsetting the Capella discovery in 2011."

Capella F-10 Horizontal Well

The Capella F-10 well was drilled in 2 phases, the first being a deviated pilot hole, and the second a horizontal well drilled from the existing deviated pilot wellbore. The deviated pilot well was drilled to a total depth of 4,180 feet measured depth ("ft MD") or 3,505 ft true vertical depth and encountered 75 ft of net oil pay within the Upper Mirador sandstone reservoir, the target of the horizontal well. The Upper Mirador reservoir has an average porosity of 28% and average oil saturation of 83%, with no free water encountered.

The lower part of the deviated pilot was subsequently plugged back and a horizontal well targeting the 80 ft thick Upper Mirador reservoir drilled to a depth of 5,067 ft MD. The length of the horizontal section within the Upper Mirador reservoir is 1,017 ft. The horizontal well encountered excellent oil saturated sandstone reservoir throughout the entire length of the section. The horizontal section of the well was completed with a slotted liner followed by installation of a progressive cavity pump ("PCP").

Testing of the Upper Mirador yielded gross flow rates of up to 437 bopd (44 bopd net) of 11o API oil with a water cut of approximately 1.3 % with the PCP set to 120 rotations per minute ("rpm"). The maximum potential flow rate of the well is 540 bopd gross (54 bopd net) with the PCP set to the maximum rate of 140 rpm. The rate achieved by the horizontal well greater than 2 times that of a vertical well, meaning that horizontal production wells will likely form a significant component of the future development drilling program for the field.

Cyclic Steam Injection Pilot

On August 27, 2010, the joint venture commenced steam injection into the Lower Mirador reservoir in the Capella C-5 well. As of August 31, 2010, approximately 300 tons of stem had been injected. Steam injection will continue until September 11, 2010, which will be followed by 5 days of soaking. After soaking has terminated, the well will be produced under natural hot-flow conditions for a period of up to 30 days. Following the period of natural flow, a PCP will be installed and the well produced until it has reached pre-steam injection production levels. The joint venture is currently converting the Capella A-1 well in preparation of injecting steam into the Upper Mirador reservoir. The testing program will duplicate that of the program being executed in the Capella C-5 well.

Romero 1 Well

The Romero 1 well was drilled to a total depth of 3,136 ft MD at the structurally highest part of the discovery. Good oil and gas shows were encountered in both the Upper and Lower Mirador reservoirs while drilling, although reservoir quality within both the Upper and Lower Mirador was poor, and each failed to yield any appreciable flow upon testing. The Corporation has concluded both the Upper and Lower Mirador reservoirs pinch out at the very top of the structure, with better reservoir known to be present along the flanks of the structure, as verified by the 7 other wells producing from flank locations. The Corporation plans to drill the Romero 2 well at a location structurally lower then Romero 1 was drilled as part of the remaining drilling program in 2010.

Capella L-11 Well

The Capella L-11 well was spud August 27, 2010, and is anticipated to reach a total depth of approximately 3,374 ft MD within the next 2 weeks. The well is a vertical well, and will target production from both of the Upper and Lower Mirador reservoirs, both of which will be production tested. The well is located approximately 1 kilometer to the northwest of the Capella F-7 well.

Forward Plans

The Corporation plans to drill an additional 4 wells in 2010, with 1 of them planned as horizontal, and the remaining 3 being planned as verticals. All of the information from the new wells, and the results of the steam injection pilot and the 3D seismic will be used to formulate the go forward development program for the Capella discovery in 2011 and beyond.
ken

[farmscan] 25/8/2010 15:50

'Waterford to nominate 2 directors to the Jupiter board' Hmmm.

[264091] 25/8/2010 02:00

'The two Converting Loan Agreements, one with Waterford and a second with Soyuzneftegas Limited (SNG), an unrelated and unassociated party.'

yeh right, interesting board this still, thanks.

[captainfatcat] 24/8/2010 12:20

Jupiter Energy underpins development plans in Kazakhstan


22 August 2010 - Issue : 895



Waterford Group, a private holding company recently announced that it has acquired a 13% stake in Jupiter Energy, an Australian listed oil exploration company via placement of 132.
9 million shares at 2.

70 cents per share, raising €3.

59 million.

The announcement has bolstered Jupiter's development plans for its Block 31 Triassic reservoirs in Kazakhstan, Kazinform reported.

Additional financing initiatives announced could raise a total of €16.

7 million.

It is expected that Jupiter will enter into two Converting Loan Agreements to raise a further €3.

91 million, convertible into 144.

8 million Jupiter shares at 2.

70 cents and a 1 for 3 non renounceable Rights Issue priced at 2.

70 cents to raise €9.

17 million.

Total funds to be raised is expected to be €16.

67 million (before costs) and will enable Jupiter to have sufficient working capital to drill well J-51 to enhance production and J-52 to explore a new prospective area of Block 31.

Geoff Gander, Jupiter's executive chairman said that the company board is pleased to welcome Waterford as a strategic cornerstone investor and look forward to working with them to continue to develop Jupiter into a leading E&P company in Kazakhstan.

He added, Their contacts and expertise in Kazakhstan give us great confidence that they will add significant value to Jupiter at both a Board and operational level.

Michael Kroupeev, Waterford director, said his company is impressed with the progress Jupiter has achieved in Kazakhstan to date and believe that with access to increased working capital and some additional experience at Board level, both sides can contribute great deal of value to the company as Block 31 continues to be developed.

The two Converting Loan Agreements, one with Waterford and a second with Soyuzneftegas Limited (SNG), an unrelated and unassociated party.

Conversion of these loans is subject to shareholder approval, and will automatically convert into shares once approved.

The expectation is that these loans will be converted into a further 144.

8 million shares (at an effective price of 2.

70 cents per share).

The Shareholders meeting to approve this conversion will be held in September.

Both Jupiter and Waterford believe that Jupiter should increase its exposure to the European investment community and the new Jupiter Board will explore opportunities to dual list Jupiter on either the Official List or Alternative Investment Market (AIM) in London

[utrecht_00] 21/8/2010 18:01

article in todays FT about Sinochem maybe trying to muscle in ON BHP's potash deal. Mentions Sinochem buying Emerald. Still can't keep the dog out of the newspaper a year on!!