Drilling operations in the Costayaco field, a new oil field discovery made in 2007 in the Chaza Block in the Putumayo Basin of southern Colombia, are proceeding as planned.
Testing operations on Costayaco-2 were initiated on January 26, 2008, and are expected to be completed before the end of February 2008. Drilling of the Costayaco-3 commenced on January 25, 2008, and is expected to be completed in late February 2008, with testing to follow afterwards.
Technical evaluation work continues on all seven blocks in the Noroeste Basin in northern Argentina, with well design and planning continuing for the Proa-1 exploration well in the Surubi Block, expected to be drilled in the third quarter of 2008. An active work-over program of existing wells has been budgeted to maintain the company’s base production.
