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Sunday, 12 October, 2008, 12:50 GMT | more prices >>

Loon spuds Santana-1 well in Colombia

By Upstream staff

Calgary-based Loon Energy has spudded the Santana-1 well, which will be used to evaluate gas sands within the Honda and Barzalosa formations within the Lower Cretaceous Caballos formation in the Abanico Block of central Colombia.

The company said the targeted total depth of the well is 7000 feet (2130 metres) and the well is expected to reach total depth in late August.

The well is about 6.5 kilometres to the south of the Ventilador-2 (Loon 49%) producing gas well and 15 kilometres southeast of the Delta-1 (Loon 20%) indicated oil discovery announced on14 June.

The well will be drilled at no cost to Loon under an agreement with Prospero Hydrocarbons.

Under the terms of the agreement, Loon is assigning a 25% interest in the Santana prospect in consideration for Prospero and Kappa funding 100% of the well costs.

Completion and testing expenses will be proportionally split amongst the partners.

Loon will retain a 24% interest in the Santana prospect and a 49% interest in the rest of the Abanico Block excluding the interest of the operator, Kappa Resources Colombia in the existing Abanico oilfield and the interest of Loon in the Ventilador-2 well.