The company, which has a 100% working interest in the Fell Block, drilled and completed the Guanaco-6 well to a total depth of 2,760m.
A production test in the Springhill formation, at approximately 2,551m in a 12m perforated interval, flowed at a rate of approximately 1,578 barrels per day (bpd) of oil through a choke of 12 millimeters, with a well head pressure of 654 pounds per square inch.
According to the company, these are preliminary results and further production history will be required to determine stabilized flow rates and the extent of the reservoir, and projected production rate for the well is 600bpd-800bpd.
Surface facilities have been constructed and the produced crude oil is now being marketed, the company said.
The drilling results from this well and preliminary interpretations of available seismic data provide evidence that the Guanaco structure is about 6sq km in area with a preliminary 2P reserve estimate (internal) of about 6-7 million barrels of oil, about 3-4 million barrels higher than previous estimates, and with the possibility of multiple drilling opportunities.
The Guanaco field is located in the south-central area of the Fell Block and the new 3D seismic survey conducted during 2010 also suggests the possibility of finding traps and additional resources to the south of the structure.
