Pacific Exploration & Production skids higher on operations update

Shares in Latin America focused oiler Pacific Exploration & Production Corporation (TSE: PEN) nudged higher as it updated investors on operations, saying it was looking forward to testing a number of “high impact” prospects this year.

The group has interests in more than 30 exploration and production blocks in Colombia and Peru.

Notably, in Colombia, discovery well Ceibo-1 in the Guatiquia block has been re-completed and placed on test from May 11 and is currently producing at 600 bbl/d (barrels a day) at 77.5% water cut.

The production will eventually be co-mingled with the LS-1 producing sand already completed in the well. Upon completion of testing of this interval two more tests are planned for the middle and upper Guadalupe sands.

Since the drilling of Ceibo-1, 12 further wells have been drilled into the pools giving a total of 13 now in production.

Also, the Candalilla 6 exploitation well was spud last week (May 24) and is targeting the Guadalupe formation on a structural high. The well is being directionally drilled from the Candelilla 1 pad.

PEN chief executive Barry Larson said: “We are very pleased with the results of our exploration and development program during the year-to-date, and we are looking forward to testing a number of our high impact prospects this year.

“The company’s exploitation activity has been particularly successful on the Guatiquia Block where both Ardilla-3 and Ceibo have added to the Company’s light oil production in Colombia.”

Shares added 0.65% to stand at C$38.50 a pop.

Story by ProactiveInvestors