Black Rock Oil and Gas Plc

Middle Magdalena Prospects, Colombia Technical Review

Page 1

Background
75W

12N

PA

NA

Middle Magdalena Basin

Lower
Magdalena
Basin

8N

VENEZUELA

ALHUCEMA
E&P CONTRACT

Location

4N

ra
Cordil
le
Centra
l

Ocean

LAS QUINCHAS
ASSOCIATION CONTRACT
BOGOTA

U.M
agd
Bas alena
in

Basin

Pacific

Weste
rn Co
Cauca
rdillera
Basin

Llanos
Foothills

Pacific

The blocks are located within the prolific oil province of the Middle
Magdalena Valley. This province has produced over 2.2 billion barrels
of oil. To the northeast of the Contract areas is the De Mares area
(1.2 billion barrels produced) and to the south lies the VelasquezPalagua fields (450 million barrels produced). Located to the east is
the 1.5 TCF Opon gas field. Close to the western edge of the Las
Quinchas boundary lies the Chicala heavy oil field (12 mmbo) which
is being produced with steam injection.

71W

Caribbean Sea

Black Rock signed agreements in 2005 to participate with operator,

Kappa Energy Colombia Ltd, in the Las Quinchas Association Contract
and the Alhucema E&P Contract. The latter is a new style contract
providing a royalty tax to the government. Although Ecopetrol has the
right to 50% interest in any development (with reimbursement) in the
Las Quinchas Association Contract, there are no back-in rights within
the Alhucema E&P Contract.

Llanos Basin

COLOMBIA
Guyana Shield

200km

Regional Location Map

Play Overview
The Middle Magdalena Basin is preserved between the tectonically complex thrust
belts of the Central and Eastern Cordilleras. As a result of multi-phase faulting
significant trapping potential for hydrocarbons exists in the basin.

The more recently established Cretaceous play is an additional reservoir objective

in the area. Fractured limestones in the Rosa Blanca and Tablazo formations of the
Basal Limestone Group are very productive. Rates of over 6000 bopd have been
achieved in the Buturama Field.
Prolific source rocks occur in shales of the Middle Cretaceous La Luna Formation.
The oil generated is preserved as moderately light gravity (25 API) in the deeper
eastern and central parts of the blocks but grades to heavy viscous oil (12 API) in
the shallow western side where biodegradation and water washing can occur. Additional
source rocks from the shales of the Lower Cretaceous may have provided the light
oil in the Buturama Field.
W

CENTRAL CORDILLERA

ARCE FIELD

THRUST BELT
Oil seeps

Oil seeps

Real Fm.
Basement

10 km

Reservoir

T E R T I A R Y

Mesa Gp

Miocene

Real Gp

Schematic Reservoir
Lithology / Source

Fields

Colorado Fm

Mugrosa Fm

Eocene

Esmeraldas
Fm

La Paz Fm

Paleocene

Lisama Fm

Oligocene

M
L

Umir Shale
La Luna Fm
Salto Lst
Simiti Fm
Basal Lst Gp
Tambor Fm

Jurassic

Giron Fm

Triassic

Jordan Fm

R
R
S
S
S
R
R

Basement

Central Middle Magdalena Basin:

Summary of Petroleum Geology

Colorado Fm.
Mugrosa Fm.

Subtle normal
fault traps

Formation

Recent/
Pliocene

M E Z O S O I C
Cretaceous

The primary reservoir objective is the Oligocene sand of the Mugrosa and Colorado
formations. These sands are stacked and contain porosities of 18 to 24% with good
permeabilities. The argillaceous content however can produce high water saturations
and the oil gravities can vary from medium to heavy depending on effects of water
flushing and biodegradation due to depth of burial. The Velasquez Field, for example,
has medium gravity oil and produces at rates up to 500 bopd. Similar rates can be
achieved in the heavy oil belt with steam flooding techniques.

Age

Chorro Gp.

La Luna Fm.
Cretaceous

Source rock section

Basement

Regional Schematic Cross-section

Black Rock Oil and Gas Plc

January 2008

Black Rock Oil and Gas Plc

Middle Magdalena Prospects, Colombia Technical Review

Page 2

Las Quinchas Prospects

Previous exploration on the block has revealed several heavy oil discoveries in Lower
Tertiary sands: Arce, Bukhara and Baul. In 2007 a new discovery, Acacia Este-1, was
made 10kms south of the Arce Field. These discoveries are the focus of further appraisal.
Additional prospect Rio Viejo/La Tolda has been recognised in the deeper Cretaceous
section. Field analogues indicate that light oil will charge this Cretaceous target.

ALHUCEMA
E&P CONTRACT

Sardinato

Arce
Arce 4 was drilled in July, 2006. The well was drilled to 3073 feet and intersected
a 300 foot oil section in the Oligocene Mugrosa sands. Testing produced
30.5 bopd of 13 API. A six month steam-flood testing programme was
initiated in 2007 but has proved to be problematic with equipment and
completion failures. Consequently the joint venture is reviewing its
options in the light of these problems and may consider acquiring
more seismic data over the Arce Field to allow more confident
selection of an updip location for a further appraisal well.

Morroa N.
Juanes
Arrinconada
Chicala N.E.
Chicala E.

Chicala

Past seismic remapping of the Arce structure suggests that

the western boundary of the field may extend further west
which could significantly increase the current reserves from
10 to 36 mmbo.
Acacia Este
Acacia Este-1 was announced as a discovery in July 2007,
producing oil from several sand horizons in the Tertiary Mugrosa
Formation. Testing subsequently recovered heavy oil to a
maximum rate of 101 bopd. Operations at Acacia Este-1 were
temporarily suspended in late August after the well sanded
up. Operations recommenced in late October after a workover rig became available and was mobilised to the well. After
cleaning out the well, the opportunity was taken to re-test the
lowermost zone which had not previously produced significant
volumes. Swab tests resulted in production rates of several
barrels per day with no water. Although the rates are low, the
results are very important because this potentially extends
the hydrocarbon column significantly down dip.

Rio Viejo / La Tolda

Arce

Acacia
Este

LAS QUINCHAS
ASSOCIATION CONTRACT
La Linda
Bukhara
Oil field
Prospect

Baul

Baul E.

Velasquez

10 km

Las Quinchas Association Contract

Fields and Prospects

A work-over was then undertaken to re-complete the well with a gravel

pack within the liner over the upper zone that had previously produced
up to 101 bopd at a pump rates of 3-4 strokes per minute (spm).
Initial rates following the work-over peaked at 98 bopd at 2 spm, with very
little water. A pressure build up test was carried out in December 2007
after which the well recommenced the production test.
The initial appraisal well, Acacia Este-2, was spudded 21st December,
2007. Initial test results are expected to be available around the end of
January, 2008. The two wells will then be put on extended production test.
Recoverable reserves are estimated to range from 50 to 100 mmbo.
The current seismic data coverage is inadequate to optimise further appraisal
well locations. The joint venture therefore intends to mobilise a seismic
crew early in 2008. The second appraisal well, Acacia Este-3, will be located
after this data has been acquired and interpreted and is planned for
mid-2008.

Black Rock Oil and Gas Plc

Acacia Este-1 Discovery Well

January 2008

Black Rock Oil and Gas Plc

Middle Magdalena Prospects, Colombia Technical Review

Page 3

Las Quinchas Prospects (cont.)

NW

SE

0.4
Arcacia Este Fault

Two way time (seconds)

0.6

0.8

Top Mugrosa
Reservoir Zone

1.0

Tertiary Unconformity
1.2
Basement

Seismic Section through Acacia Este-1 Discovery Well

Baul
Baul is a highly faulted structure on the southern block boundary.
Baul-3 well encountered oil in the Mugrosa section. Reserves
potential of up to 5 mmbo is estimated in Baul.

Sardinato

ALHUCEMA
E&P CONTRACT

Bukhara

Morroa N.

Bukhara-1 discovered oil in the Eocene Esmeralda sandstones

but testing was incomplete. There is additional potential downdip
in the La Paz massive sands. Further evaluation is required of
this complex faulted structure but significant reserves could
be present.

Juanes
Arrinconada
Chicala N.E.
Chicala E.
Chicala

Alhucema Prospects
This area has a similar geological setting to Las Quinchas.
Regional evidence suggests that the Arce - Chicala heavy oil
trend extends from the south into the western part of Alhucema.
Structures such as Chicala NE, Arrinconada and Juanes have
similar potential to these Tertiary discoveries further south. Also
more deeply buried Cretaceous limestone reservoirs are
anticipated in structures such as Morroa.
Nearly 60kms of 2D seismic were acquired during 2006. Drilling
locations have been evaluated and it is planned for the first well,
Arrinconada-1, to be drilled in 2008.

Rio Viejo / La Tolda

Arce

Acacia
Este

LAS QUINCHAS
ASSOCIATION CONTRACT
La Linda
Bukhara
Oil field
Prospect

Baul

Baul E.

10 km

Alhucema E&P Contract Prospects

Velasquez

Black Rock Oil and Gas Plc

January 2008