OVL to begin drilling at CPO-5 in Colombia this month

Vol 16, PW 7 (18 Oct 12) Exploration & Production

Cocaine production in Colombia is falling but oil production might soon rise if OVL gets lucky as it prepares to spud the first of two exploration wells on October 24 at its onland 1992-sq km block CPO-5 in northeast Colombia’s Los Llanos basin, a flatland near the Orinoco River.

Last month (September 28) OVL hired 1500-hp land rig Petrex 22 from UK-based Petrex after receiving bids on August 10. “Petrex 22 is mobilising to begin drilling the first well (Kamal-IX),” confirms an OVL source in Colombia, who adds each well is likely to take up to 45 days to drill to 3200 metres TD.

“There are good discoveries nearby,” he says. Northwest of CPO-5 lies Petrominerales-operated blocks Guatiquia and Corcel.

Guatiquia, on the Candelilla structure, has the Yatay-1 discovery, producing more than 10,000 b/d. Llos Llanos is also known for its biodiversity, boasting 350 species of birds and 50 species of mammals in wetlands, savannahs and forests, not to mention anacondas, piranhas, jaguars and vampire bats.

OVL has applied for a one-year extension to the three-year Phase-I at CPO-5, which ended on June 26. In Phase-I, OVL committed $20m to shoot 250-lkm 2D and 343-sq km 3D, besides two wells.

Two years ago it shot 262-lkm 2D and 650-sq km 3D. In Phase-II, likely to begin next June, OVL has set aside $12m to reprocess 2D and drill three more exploration wells.

Another 1000-sq km fresh 3D is also planned. OVL’s imminent exploratory drilling campaign at CPO-5 will be its first in Colombia.