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Kangaroo-2 well flows oil at 3700 bbl/d from Paleocene intervals

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Oilfield Technology,

Pacific Rubiales Energy Corp. today provided an update on oil flow test results in the Kangaroo-2 appraisal well, located in the shallow offshore, Santos Basin, Brazil.

The Kangaroo-2 appraisal well is located in exploration Block S-M-1165 and confirmed an 820ft gross oil column in Paleocene and Maastrichtian aged reservoirs, announced on 26 November 2014. The company has a 35% participating interest in the wells and five surrounding blocks. Karoon Gas Australia Ltd. holds the remaining 65% interest and is operator of the block.

As announced in a news release yesterday by Karoon, a production test (DST-2A) was conducted over a 12 hour period through three perforated intervals, in the Paleocene A, B and C sandstone reservoirs. A maximum flow rate of 3700 bbl/d of 33o API oil was attained through an 88/64" choke with a flowing tubing head pressure of 270 psi, a gas-oil-ratio of 540 cf/bbl, and no water or sand production.

A separate production test (DST-2) was conducted across the 59ft lower perforated interval in the Paleocene C reservoir. In DST-2, a maximum flow rate of 2500 bbl/d was attained through a 44/64" choke with a flowing tubing head pressure of 425 psi and a GOR of 450 cf/bbl. The well was then flowed on a 40/64" choke at a stabilised rate of 1820 bbl/d with a flowing tubing head pressure of 420 psi, and a GOR of 450 cf/bbl. The oil produced in DST 2 was 31° API, with no water or sand. At the end of a main 24-hour flow period, the well was shut-in for a 48-hour pressure build-up period.

Ronald Pantin, Chief Executive Officer of the company, commented:

"We continue to be very pleased with the results of the Kangaroo-2 appraisal well, which confirms a significant light oil discovery on our blocks in the offshore Santos Basin, in Brazil. Based on the flow rates achieved, analysis by the operator suggests that reservoir characteristics in the structure are excellent and would support flow rates of 6000 to 8000 bbl/d in a vertical producing well, and higher rates in a horizontal well bore. We look forward to continuing the exploration and appraisal drilling campaign throughout the first half 2015."

Production testing in the current Kangaroo-2 well bore is now completed and preparations are underway to commence a side-track program to better define resource size and recovery factors, whereby two separate side-tracks will be drilled from Kangaroo-2. Side-track-1 will be drilled to a down-dip location to target potential reservoirs on the eastern side of an interpreted fault. Side-track-2 will be drilled in an up-dip location to test reservoir and hydrocarbon potential towards the salt wall seal. The information from the ongoing operations in Kangaroo-2 will be used in assessing the commerciality of the Kangaroo oil field and for front-end engineering and design work.

Following the completion of all operations in the Kangaroo-2 appraisal well, the rig will be moved to drill the Kangaroo-West-1 exploration well, evaluating a separate prospect approximately 4.5km on the western side of the Kangaroo salt structure.

Adapted from press release by Joe Green

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