Pacific Rubiales releases Peru well results

Wednesday, February 5, 2014

Pacific Rubiales (TSX: PRE) has announced test results for its Los Ángeles-1X well in block 131 and an update on its progress in block 126, both in Peru's Ucayali basin.

Three tests in the Los Angeles-1X well have produced flow rates of 125b/d, 936b/d and 2,351b/d of 44° to 45° API light sweet oil. Water cuts ranged from 10% in the lowest interval to between 0.3% and 0.0% in the upper intervals. Petrophysical evaluation previously indicated 62ft (16m) of net pay in the Cretaceous-aged Cushabatay formation.

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Following another 30-day initial production test in the block, an extended production test is expected to begin mid-2014, pending government approval.

Pacific Rubiales holds a 30% working interest in block 131 through wholly-owned subsidiary Pan Andean Resources. Spain's Cepsa owns the remaining 70% working interest and paid 100% of the well's costs. Both are working as a joint venture to develop strategy for the block.

In Block 126, the Sheshea-1X exploration well produced 1,430b/d of 53° API light sweet oil with 0.0% water from a 10ft perforated zone in the Cretaceous-aged Chonta formation. The well had been drilled to a total depth of 8,925ft in late 2012.

In the same block, the Cretaceous-aged Agua Caliente formation tested 80b/d of 42° API with a 97% water cut, presenting the possibility of an accumulation undip in the well.

Pacific Rubiales has applied for two environmental impact assessments (EIAs) to progress to the evaluation and eventually developmental phase in the block, in which it holds a 100% working interest. The first will request 23 drilling pads, each comprised of eight wells and a 2D and 3D seismic program. The second EIA is primarily for early production facilities. The company hopes both will be approved by the end of 2014.

The company acquired both blocks from Petrominerales (TSX: PMG) in late 2013.