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$Colombia and Latin America
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CNE Exploration from conf callThank you. We received one first question from Daniel Guardiola from BTG Pactual. What is the current progress of the drilling of Pola? Can you share with us the expected timeline, CapEx expected, EUR, IP and potential reserves? ..................................................................................................................................................................................................................................................................... Charle A. Gamba President, Chief Executive Officer & Director, Canacol Energy Ltd. A Yes. I'll take care of Pola and Jason can cover the second half. So the Pola 1 exploration well will be the first deep test we drill in the Middle Magdalena Valley. We're targeting a conventional deep basin-centered gas play within the cretaceous reservoirs there. Last year, we had planned to drill that well. However, we were unsuccessful in sourcing a drilling rig. This well, as it will be drilled to around 19,000 feet will require a 3,000-horsepower rig, and there were none available within Colombia or even South America last year. That situation has changed. Ecopetrol who contracts the majority of the 3,000-horsepower rigs for their drilling programs in the Piedemonte Llanero basin are starting to drop those rigs. So, we're currently negotiating a 3,000-horsepower rig, which we assume we will have contracted by June of this year. And with that in mind, we've already completed the civil works to drill the well from, and we anticipate to spud the well in third quarter of this year. Perfect. That's very clear. And finally, with regards to your 2023 exploration program, if you could share more color on which areas will be at the core of your strategy, minding that Pola 1 is expected for the third quarter? And is there any exploration commitments that maybe will drive you to explore in areas that may not be as far as profitable as suggested by your seismic? How are you planning to balance this? ..................................................................................................................................................................................................................................................................... Charle A. Gamba President, Chief Executive Officer & Director, Canacol Energy Ltd. A Yes, so we have three types of exploration program we're executing this year. The first is a very near-field exploration program, which consists of three wells, Lulo, [ph] Pinha and Ceresa (20:24). These are three wells that will target the CDO reservoir, which is our main producing reservoir at deeper levels, so we're drilling – the upper part of the CDO in the near-field area around Jobo had been exploited by previous operators that did not drill all the way down to the bottom of the CDO. And we know that there is gas throughout the CDO. So, those three near-field exploration wells will target sort of lower gas – gas within the lower part of the CDO. We're looking at – the three wells have a cume target of about 60 Bcf on this resource and the value of these near-field prospects, so they can be tied into production immediately. One of the wells, Lulo 1, is actually being drilled from our production facilities at Jobo. So, we're drilling right underneath the Jobo processing plant for deeper gas and in the CDO. So, that's the first type of near-field, very low-risk, very rapid commercialization exploration we're doing. The second is on the VIM-5 contract, where we shot a significant 500 square kilometer 3D seismic program last year. So, we've identified about 20 prospects off that 3D. These are all prospects within the CDO, the conventional producing reservoir. These prospects all have amplitude anomalies associated with them, and we'll be drilling two or three of those this year. So, exploration with at least two of them this year, [ph] part of Momo (22:01) and another one whose name escapes [indiscernible] (22:04). So, these are relatively large new prospects based on the three sites that we acquired last year. And finally, in the Middle Mag, as I mentioned earlier, we plan to drill the Pola 1 well starting in the third quarter of this year. So, that encapsulates our exploration program: Generally low risk; certainly very low risk in our near field operations; relatively low risk in the new area where we shot 3D; and then, of course, the high risk Pola 1 well. ............................................................ Thanks, Jason. We have another question from [ph] Nikos Monoyios from Enkelson Schneider (38:47). When will Dividivi-1 flow test results be available? And how long would it take to connect to pipeline, if successful? Is production from this well in 2023 guidance? ..................................................................................................................................................................................................................................................................... Charle A. Gamba President, Chief Executive Officer & Director, Canacol Energy Ltd. A Thank you. We are currently testing the Dividivi 1 well under a long-term test. We will release those results when that test is completed in April. And we're currently evaluating development options for that discovery, which would include tying the well into the TGI gas pipeline located approximately 30 kilometers to the east of the discovery. We're also looking at possibility of installing liquification (sic) [liquefaction] up to 15 million cubic feet per day on that discovery to transport the gas in liquid form to various commercial options. So, we should have post-production – long-term production test results out sometime in April. My take on Dividivi1: So, if they are considering facilities that can handle 15 MMCF/D, that implies annual production of 5.5 BCF. I assume they wouldn't justify the investment unless they thought they discovered 50 BCF or so, no? |
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