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Frontera Energy discovers oil from Acorazado-1 exploration well in Colombia

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Frontera Energy discovers oil from Acorazado-1 exploration well in Colombia

Canadian exploration and production company Frontera Energy Corp. said Oct. 9 that it has discovered light oil from its Acorazado-1 exploration well on the 100% owned and operated Llanos-25 block in Colombia.

The Acorazado-1 exploration well was drilled to a total measured depth of 15,470 feet and encountered 356 feet of gross thickness in the Mirador formation sandstone reservoir.

The company will now proceed with completing the Mirador VI reservoir and is in the process of applying for a long-term testing license, which will allow it to produce the well for six months with the potential for another six-month extension, while production facilities are placed at the well site.

Overall, the company's current production has returned to planned levels above 65,000 barrels of oil equivalent per day, with Block 192 production in Peru averaging over 10,000 bbl/d since the block was restarted in September.

"Frontera's strong production profile is well-timed with the upcoming expiration of our oil hedges at the end of October which will increase our exposure to Brent oil prices by nearly $25 per barrel based on recent prices. Additionally, we will be drilling some exciting exploration and appraisal wells during the fourth quarter including Coralillo-3 and Cocodrilo-1 on the Guatiquia block and additional Jaspe appraisal wells in the Quifa North area," Frontera CEO Richard Herbert said.

Frontera remains on track to deliver annual production near the low end of its guidance range of 65,000 to 70,000 boe/d, despite three months of downtime related to pipeline issues in Peru, a blockade in the first quarter at Cubiro in Colombia and higher than planned high price royalty payment volumes at Quifa.

During the fourth quarter, the company expects to drill 34 wells, with 18 development wells at Quifa SW, seven water injection wells, two development wells at Candelilla on the Guatiquia block, two development wells at Zopilote Sur on the Cravo Viejo block and five exploration and appraisal wells.