15th Apr 2014 15:17
LONDON (Alliance News) - Global Energy Development PLC Tuesday said it expects to start rig mobilisation late in the second quarter at its Catalina 1 well, where it plans to test the Simiti formation in the Bolivar Association Contract located in the northern section of the Magdalena Valley in Colombia.
Rig mobilisation should start once all necessary service equipment has been delivered to the well site, the petroleum exploration, development and production company said.
The design stage of the project has been completed in conjunction with US-based engineering firm Ely and Associates, together with an unnamed oilfield service provider which will perform the upcoming fracture stimulation of the Simiti formation in the existing Catalina #1 well.
Global Energy has acquired high pressure wellhead and downhole equipment and has ordered and obtained the necessary sand to be used in the fracture stimulation.
All of the stimulation water handling equipment is complete, in place and has been tested, Global Energy said.
The company has also completed significant preparation of the physical facilities at the Catalina well site, including the installation of pump station facilities and water transport lines to treat and transport water to four 10,000 barrel storage tanks onsite.
Global Energy now plans to install oil and water connection lines from the well testing equipment to the existing oil, gas and water handling, separation and disposition facilities on site.
"We believe that the testing for light oil in the Simiti formation in the Catalina #1 well will enhance future strategic alternatives and provide greater value for the Company and its shareholders," Managing Director Steve Voss said in a statement.
"With a project of this kind in Colombia, there is a significant lead time in obtaining equipment and vendor services before well operations can commence," he added.
The stock was trading at 69.00 pence Tuesday afternoon, up 0.50 pence or 0.7%.
By Anthony Tshibangu; [email protected];
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