"We have already established a significant land position in two low-risk proven basins in Brazil while we look to Colombia for projects with significant upside."
Brazil
Brazil


Brazil: Sergipe-Alagoas Basin Highlights
  • Petro Vista: has earned the rights to a 37.5% working interest (27.23% net revenue interest) in producing shallow offshore block subject to the approval of the ANP and concession partners.
  • Pipeline access within 1.5km.
  • Nearby Oil Fields include CARMOPOLIS (30MMBO produced) and CAIOBA (50 MMBO produced).

TARTARUGA BLOCK - IN PRODUCTION

The Company has earned the right (subject to regulatory approve) to a 37.5% working interest (27.3% net revenue interest) in the shallow offshore and producing oil concession Block SES-107D ("Tartaruga Block").

The Tartaruga Block is located in Brazil's prolific Sergipe-Algoas Basin, north-eastern Brazil and currently produces from two wells , one of which has been on production over 14 years. Both wells have multiple pay zones identified on logs that have not yet produced.

In February 2011 the Company drilled, tested and complete the second of its two producing in (7-TTG-1DP-SES). A cased hole test on the P6 Zone in the Penedo Formation (depth 3235 meters to 3268 meters over all) produced at a limited rate of 744 barrels of oil per day (gross) of 41.5 API gravity oil with no water cut on a 10164th choke with a flowing bottom hole pressure of over 2800 psi. Flow was limited due to the inability of the surface facilities to handle larger volume. There are 5 additional zones in the Penedo Formation that appear to be capable of production and planned to be tested and completed at a future date.

Well 7-TTG-1DP-SES was immediately placed on production in Q1 2011 at the existing facilities along with the original well (1-SES-107D) that is currently producing at approximately 80 barrels of oil per day (gross). It is believed that the field will support at least two additional development locations and there is a deeper Serraria Formation prospect underlying this field that can be targeted with one of the upcoming development wells.

Due to declining production from the second producing well due to paraffin buildup at the well-head and reduced pressurization, the Company and its partners commenced a work-over of both producing wells at the Tartaruga block. These workovers, will include installation of the Electrical Submersible Pumps in the two existing production wells are expected to enhance production. These operations are expected to be completed in June 2012.

The Company's future plans include the drilling of one additional development well into the currently producing Penedo formation and an exploration well to target the deeper and untested Serraria formation which produces prolifically updip and onshore to the Tartaruga Block.