Canada-based oil and gas company Suroco Energy has commenced drilling of Pinuna 2, its second development well in the Suroriente Block. The well is being drilled with San Antonio rig SAI 15, which is the same rig that was used to drill the Pinuna 5 well.

The well is targeting the Villeta T and Lower U reservoirs and will be drilled to a total depth of 2,983mt. It is being directionally drilled from the Pinuna 1 surface location, with a bottom hole location approximately 350mt from the Pinuna 1 vertical well that is currently producing at 1,550bbls/day.

The well is being drilled to maximize the recovery of reserves in a four-way dip closed feature, which is partially separated from the Pinuna 1 feature.

The Pinuna 5 development well has averaged 1,944 barrels per day with no pressure depletion and no significant water production. The initial production behavior of Pinuna 5, which is capable of flowing at approximately 1,400bbls/day in natural flow without pump, indicates that this well is capable of higher sustained rates.

The overall Suroriente block production rate, since the Pinuna 5 well commenced production, has averaged 4,670bbls/day and is currently constrained whilst additional storage and trucking facilities are being put in place. The additional facilities are expected to be in place in April, when the Pinuna 2 well is anticipated to come on stream and adding to overall production rates.

The company is re-evaluating its 2010 drilling program with a view to locating a rig to drill an offset well to the new Lower U pool discovered by the Pinuna 5 well, which did not have any reserves assigned to the Lower U reservoir at this location.

Suroco Energy is also planning to drill at least three more development wells in the Pinuna-Quillacinga T sand pool and in the Cohembi N sand pool during 2010.

The newly acquired seismic data in the Alea 1947C block has been evaluated, and the company and its partner in the block have decided to proceed with the second exploration phase. A large and well defined exploration prospect has been identified in the block, which is on trend with the producing Platanillo oil pool in the Putumayo basin. The second phase requires one exploration well to be drilled to a total depth of approximately 8,000ft.