The Moriche Block is a 12,463 hectare block located in the Llanos Basin in the central-east part of Colombia. Pacific Rubiales holds an 80% participating interest in this E&P contract, which was awarded by the ANH to Pacific Stratus on February 21, 2005.
In 2006, the Mauritia-1 well was drilled in the southern portion of the block and proved dry, containing only traces of hydrocarbons in the target zone. However, as the block continued to offer good exploration potential, the company decided to commence a second exploration phase in 2007.
Activities and Expenditures in 2007
At the beginning of 2007, the MN-1 well was drilled, as part of the company's second phase contractual commitment to the ANH. The well reached a depth of 10,007' (Measured Depth) at the end of February 2007 and light oil was identified and proved in the Mirador, Gacheta, and Ubaque Formations. The well was completed at the Mirador Formation level and began production in June 2007, reaching an average rate in December 2007 of 173 bbl/d, 54.4 Mcf/d and 919 barrels of water per day.
In order to better define the structure of the MN-1 discovery and to identify new prospects, an 85 km2 3D seismic program was completed covering all of the prospective alignment. This seismic program also fulfilled the third phase of the company's commitment to the ANH under its E&P contract.
Pacific Stratus spent $12.4 million in 2007 to complete these programs.
Reserves and Resources
The discovery of the MN-1 well added proved reserves of 483 Mbbl and probable reserves of 307 Mbbl of light oil to the company's portfolio.
The seismic data collected during the year was processed with PSDM, resulting in a preliminary interpretation identifying five additional prospects (see map).
