3rd Sep 2024 14:06
(Alliance News) - PetroTal Corp on Tuesday said that it has decided to complete Well 20H at Bretana in both sands, following an initial test of VS1.
The Alberta, Canada-based oil and gas company, which is focused on the development of oil assets in Peru, started drilling Well 20H on July 26.
The well is currently located at the Bretana oil field in Peru. It has been testing the Vivian formation, which consists of two primary sand bodies.
Thus far, PetroTal has only product from VS2 sand, where permeability is an order of magnitude greater than the VS1 sand. VS1 stands for upper Vivian formation sand.
However, the company said on Tuesday that it has now decided to complete Well 20H in both sands, after a brief production test showed that VS1 flowed at an equivalent rate of 320 barrels of oil per day of 18.6 API oil. This is of similar gravity to the VS2 oil.
Once enough production data has been collected, PetroTal will then evaluate the possibility of amending its field development plan to include VS1, with a view to potentially including the unit in Bretana's future 2P oil reserves certification.
The well is now drilling ahead in the main VS2 target. It is expected to complete this work by the end of September.
"Producing from the VS1 formation could add meaningful production from PetroTal's existing well stock, incrementally improving reserves and value, as well as decreasing unit operating costs and extending well life. Ongoing production data will improve our understanding of the VS1 and we will update shareholders as we develop our plans," said Chief Executive Officer Manuel Pablo Zuniga-Pflucker.
Shares in PetroTal Corp were trading 1.3% higher at 39.50 pence each in London on Tuesday afternoon.
By Holly Beveridge, Alliance News senior reporter
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