Alvopetro Announces 197(2) Discovery

Alvopetro Energy Ltd. announced that the 197(2) well, located on Block 197 in the Reconcavo basin in the State of Bahia, Brazil, has discovered natural gas. The 197(2) well reached a total depth of 1669 metres and has been cased and cemented. Based on cased-hole sonic and neutron logs, the 197(2) well encountered 78 metres of potential net natural gas pay, with an average 33% water saturation, and an average porosity of 12%, using an 8% porosity cut-off.

The 197(2) well offsets an existing discovery that has 67 metres of net pay. This offsetting well tested 3.6 mmcf/d and 21 bbls/d of condensate from a 4-metre perforated interval in the Caruacu Member of the Maracangalha Formation, over a final 16-hour flow period, with a 32/64" choke and 1267 psi flowing sand-face pressure. The operator of this offsetting well has submitted a delineation plan to the ANP.

Based on these results, and consistent with natural gas commercialisation objectives, Alvopetro plan to commence a testing program on the 197(2) well with a service rig in early 2015, subject to customary regulatory approvals and equipment availability. Additional technical work and testing is required to determine the extent, if any, of potential commercial hydrocarbons associated with the 197(2) well.

This successful result is a significant milestone for a natural gas business in Bahia and supports Alvopetro’s additional natural gas exploration prospects and broader plans to develop the extensive Gomo natural gas potential that has been discovered in 197(1) and 183(1) wells drilled earlier this year.

Alvopetro’s 197(2) discovery is the second discovery on Block 197. The 197(1) well was drilled to a total depth of 3275 metres and encountered 43 metres of potential net hydrocarbon pay over several separate intervals. The lowermost 6 metres of net pay was perforated and flowed natural gas, without stimulation, at a rate of 40 mcf/day, with no water. This gas interval is part of a large geobody that Alvopetro have mapped using 3D seismic over a large area, confirmed by 183(1) well results. Based on logs, mapping and ongoing technical analysis, Alvopetro internally estimate 1.3 TCF of total petroleum initially-in-place (natural gas) in this 5460 acre geobody. Alvopetro plan to complete and test the 183(1) well in early 2015.

Alvopetro recently completed workovers of two wells in the Jiribatuba field. The Jiribatuba(9) well is in the process of being optimised, and the Jiribatuba(1) well is now producing 34 bbls/d of 35.9 degree API crude. Based on field estimates, Alvopetro's current total company production is 65 bbls/d.

Alvopetro's focus in 2015 will be building a sustainable base of production and cash flow through lower risk, oil-focused development and exploration drilling. The financial resources enable Alvopetro to accomplish the 2015 capital plan with cash on hand. Alvopetro plan to commence development drilling on our Bom Lugar mature oil field in the first half of 2015.

Read the article online at: https://www.oilfieldtechnology.com/exploration/17122014/alvopetro-energy-announced-well-bahia-brazil-discovered-natural-gas-2016/