TORONTO, Oct. 16, 2012 /PRNewswire/ -- Sintana Energy Inc. (TSX-V: SNN) ("Sintana" or the "Company") announces that it has been notified by the Operator of the Talora Block, Petrodorado Energy Ltd. (TSX-V: PDQ) ("Petrodorado" or the "Operator"), that the Dorados-1X exploration well, which commenced drilling operations on July 31, 2012, has reached a final total depth of 7,282 feet, about 2,200 feet above the originally planned total depth of 9,500 feet.
The Operator drilled an additional 600 feet from the 6,685' depth reported on September 25, 2012. Approximately 400 feet was similar to the sand-prone section previously reported. As the remaining 200 feet was considered to be in the "economic basement" (possibly the Jurassic "Giron Formation"), drilling operations were terminated.
The Company previously reported that the well had encountered an extensive interval of a "new" Cretaceous sandstone, Cenomanian in age and therefore younger than the original target objectives (Tetuan and Caballos). It is evident that these thick, quartz-rich Cenomanian Sands, which appear to be thicker than the standard plays in the area and have superior petrophysical characteristics, define a new exploration play.
The new sand-prone package measures in excess of 1,700 feet of gross sandstone section, the lowest segments of which may be Cretaceous Albian in age. The hydrocarbon-bearing characteristics of these sandstones remain the same as previously reported of approximately 876 feet of excellent wet gas shows between 5,160' and 6,036' as defined by Gas Chromatography and Mass Spectroscopy and an estimated 316 feet of oil shows based on the mud logs between 5,720' and 6,036'.
Below 6,036', the well appears to be water wet (based on a drop in shows and petrophysical analysis). This is taken to simply represent a normal water line for this particular structure or structural compartment.
With a possible hydrocarbon column of over 800 feet, the Dorados-1X discovery interval would be exceeded by only the nearby Guando Field (40 kilometers to the southeast of Dorados-1X) with an original gas & oil column of over 2,100 feet.
The key conclusion thus far from drilling results of the Dorados-1X exploration well is the presence of a younger Cenomanian sand sequence that appears to represent a thicker and better quality reservoir than the typical Tetuan and Caballos found in this area of the Upper Magdalena Basin.
Sintana Energy's fundamental technical strategy is to identify well-defined thrust anticlines in areas of mature and abundant source rock section – prospects such as Dorados – such that the only remaining geologic risk is reservoir quality (seals are excellent).
The Company's exploration concept in the northern basin area is to discover new or overlooked fluvial and paralic sand systems within the middle and lower Cretaceous sections where exploration and deeper drilling have been largely absent.
The forward plan for the Dorados-1X well is to flow-test six (6) Cenomanian sandstone intervals. Both fractures and matrix porosity reservoir mechanisms will be evaluated. The testing program is being designed to adhere to strict efficiency guidelines in order to contain costs and ensure that each test interval will depend on the favorable flow characteristics of the preceding tests. The Operator will use a low-cost rig and anticipates that testing will commence by mid-November.
Doug Manner , CEO of Sintana commented, "We are very encouraged by the presence of this newly discovered package of thick younger Cretaceous sands drilled by the Dorados-1X well.
"Given the dimensions of these multiple sand sections, and their mineral assemblages, our technical view is that they are likely to have considerable areal extent. Not surprisingly, the partnership's testing and exploration efforts have shifted to these younger sands.
"In parallel with the evaluation of this discovery we will continue our hunt for the Tetuan shales and carbonates and Caballos sandstones in other wells, such as in the nearby Verdal-1 well (drilled in 2010)."
The Company has an undivided 30% private participation interest in the 58,570 acre Talora Block located in Colombia's prolific Magdalena Basin. The Talora Block is immediately adjacent to the region's main oil and gas pipelines and is located only 60 kilometers west of the capital city of Bogota. Given this close proximity to infrastructure, conversion of a discovery to a commercial well is expected to have a relatively short timeframe.
ABOUT SINTANA ENERGY
The Company is primarily engaged in petroleum and natural gas exploration and development activities in Colombia and Peru. The Company's exploration strategy is to acquire, explore, develop and produce superior quality assets with significant reserve potential. The Company currently holds a 25% interest in the 175,000 acre Bayovar Block XXVII in the Sechura Basin, Peru. The Company's private participation interests in Colombia include 30% in 58,570 acres in the Talora Block and 30% in 272,021 acres in the COR-39 & COR-11 Blocks in the Upper Magdalena Basin. In the Middle Magdalena Basin, private participation interests are 100% in the 43,158 acre VMM-37 Block and 25% (carried) in the 154,909 acre VMM-4 and 59,522 acre VMM-15 Blocks. In the Llanos Basin, the company has a carried 25% private participation interest in the 11,624 acre LLA-18 Block. These interests are subject to all applicable regulatory and governmental approvals, including those of Colombia's National Hydrocarbon Agency (ANH). The Company continues to evaluate a portfolio of exploration opportunities in South America.
On behalf of Sintana Energy
" Doug Manner "
Chief Executive Officer
For additional information or to receive timely updates about Sintana's South America projects and recent corporate activities please visit the Company's website at www.sintanaenergy.com or email email@example.com
Chief Executive Officer
This news release includes forward-looking statements related to the expected occurrences in relation to the properties identified. A multitude of factors can cause actual events to differ significantly from any anticipated development and although the Company believes that the expectations represented by such forward-looking statements are reasonable at the time of preparation; there can be no assurance that such expectations will be realized in whole or in part. These forward looking statements are based on assumptions that the Company has made concerning the oil and gas industry in South America, that all applicable regulatory approvals will be obtained, the reliability of available data regarding the properties and increasing demand for oil and gas. Risk factors which may cause actual results to differ from those anticipated in such forward looking statements include but are not limited to, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, the uncertainty of conducting operations under a foreign regime, exploration risk, the uncertainty of obtaining all applicable regulatory approvals, the availability of labour and equipment, the fluctuating prices of oil and natural gas, the availability of financing and the Company's dependence on Sintana's management personnel and other participants in the property areas, including Petrodorado. Neither the Company nor any of its subsidiaries nor any of its officers or employees guarantee that the assumptions underlying such forward-looking statements are free from errors, nor do any of the foregoing accept any responsibility for the future accuracy of any of the opinions expressed in this document or the actual occurrence of forecasted developments.
Undue reliance should not be placed on the forward-looking statements as there can be no assurance that such expectations will be realized. The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. This press release does not constitute an offer to sell or a solicitation to buy any of the securities of Sintana Energy Inc. in the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Sintana Energy Inc.