VANCOUVER, Aug. 1, 2019 /CNW/ - CruzSur Energy Corp.
(the "Company" or "CruzSur") (TSXV: CZR), a
growth-oriented oil and gas venture with significant assets in
Latin America, has commenced a
US$22 million phased development
program at Sinu-9 (SN-9), a high-priority Colombian natural gas
prospect, and is pleased to provide an update on other
projects.
COLOMBIA
Sinu-9 (SN-9)
SN-9 is an 18,000 acre project located in the Lower Magdalena
basin, a prolific hydrocarbon producing region near the
Caribbean coast. CruzSur holds a
72% interest in the SN-9 block, which is adjacent to Canacol
Energy's Esperanza block.
The Company believes SN-9 could be an important new source of
natural gas in Colombia at a time
of market imbalance caused by steep decline rates at the country's
main producing fields, Chuchupa-Ballena and La Creciente.
Additionally, delays at the 2500 MW Hidroltuango project are
exacerbating demand for thermal energy generation, which is mainly
produced with natural gas. LNG import prices in northern
Colombia exceed $10/MMBTU. Through a phased approach, CruzSur
expects to grow reserves and provide a more stable supply of
natural gas in the country.
Phase 1 will see the finalization of environmental and prior
consulting processes, well seismic, the re-entry of Hechizo-1 well
and two exploration wells.
Phase 2 will focus on evaluating the Magico and Milagroso areas,
including acquiring 3D seismic and drilling two additional
exploration wells.
Experienced environmental impact specialist ConsultorÃa y Medio
Ambiente S.A. (C&MA), has been engaged to obtain all necessary
permits and licenses to commence exploration on the block.
Community relations activities will be carried out by Aventtus
S.A.S, a firm with extensive consultation experience with
communities in the area.
Drilling rigs are expected on site in Q1 2021.
Maria Conchita
The Maria Conchita Block covers an area of 60,076 acres in the
Department of La Guajira, Colombia
and neighbours the Chuchupa-Ballena to its north, which in 2018
accounted for approximately 40% of Colombia's daily gas output.
An evaluation program is underway at Maria Conchita to define
total resources and determine the most appropriate development plan
for the Uitpa and Jimol formations. Possible re-entry in wells
Aruchara-1, Tinka-1 and Istanbul-1
could test several prospective zones based on new geological and
seismic re-interpretation.
In accordance with the Company's environmental security policy,
CruzSur has analyzed the actual status of other wells in the area
that were abandoned by prior operators. The Company has detected
gas leaks in the Aruchara-1 well and, given the potential
environmental risk, has requested authorization of environmental
authorities to re-enter the well and control the situation.
CruzSur holds an 80% participating interest in Maria Conchita
which it operates under its 100% owned subsidiary's Colombian
branch, MKMS Enerji Sucursal Colombia ("MKMS").
ARGENTINA
Sur del Rio Deseado Este (SRDE)
Sur del Rio Deseado Este (SRDE) is a heavy oil field located in
the prolific San Jorge basin in eastern Patagonia, Argentina.
CruzSur, through its operator Alianza Petrolera, with a 54.14%
current interest in the exploitation area, is analyzing all
possible solutions to increase production and recoveries in this
area, including new lifting methods through pulling works in
several existing wells, as well as studying the possibility for new
production stimulation methods and EOR possibilities from heat
utilization to polymer injection.
The Company believes that production and recovery factors can be
increased in this area with the utilization of the right
technologies reaching values of at least 10%. Cruzsur is in the
process of designing and executing several tests and possibly pilot
projects to define the best and most attractive technologies and
methods of production.
Estancia La Mariposa & Lomita De
La Costa
The Company also holds an 16.38% in the Estancia La Mariposa
& Lomita De La Costa projects
located in Argentina's
Santa Cruz province, covering an
area of more than 2,700 ha. With current 1P gas reserves in
Estancia la Mariposa, the field has gas and condensate production
from the Comodoro Rivadavia and Mina el Carmen Formations. In
Lomita de la Costa field, an early
exploration well tested 3 MMSCFD showing presence of gas needing
more evaluation and more drilling with sufficient gas volume for an
economic development of the field.
TECPETROL is the operator and Alianza Petrolera has an ORR over
the production. Produced oil is sold at Tecpetrol's El Tordillo
facility, gas production enters TGS pipeline. The exploitation
contract expires May 2033.
CruzSur supports the work done by the operator in this area and
believes that gas and condensate production could be increased, in
both fields, with a new drilling program. CruzSur is currently
reviewing its options with its partners and seeks to implement a
program before the end of 2019.
Mr. Iacono is pleased to state "the new management of the
company is very proud of the progress reached during the last two
months of work done to restructure the company, reevaluate the
assets in both Colombia and
Argentina and redefine the
objectives of the Business Plan including the associated options to
realize all required activities, including possible pilot tests and
financing of the assets."
About CruzSur Energy Corp.
CruzSur Energy Corp. is a publicly traded E&P company
focused on proven oil & gas plays in Latin America. The Company holds a large
diversified portfolio of producing, development and unexploited
assets in Colombia and
Argentina where it will leverage
its amplitude of technical expertise and proven track record
building companies and creating value.
Complete reports and statements are available on SEDAR at
www.sedar.com and on the Company website
http://www.cruzsur.energy.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the operations described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
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accuracy of this release.
SOURCE CruzSur Energy Corp.