Drilling is complete at the exploratory oil well in the Rupununi and it is being tested to see if oil is present.
This newspaper was told that the target depth of the well was reached recently and the next step in the process is testing for oil. It is not clear how long this process might take.
A source in Region Nine said from all indications the company was progressing smoothly with its activities.
Earlier last month, operator Groundstar Resources had reported that the Apoteri K-2 exploratory oil well being drilled in the Takutu basin in the Rupununi had surpassed two-thirds of its projected depth. It was expected that the target depth would have been reached by the end of last month. It is possible also that the company could drill a bit further down.
The target depth of approximately 3,350 meters (11,000 feet) was set to target the same productive reservoirs that tested over 400 barrels of oil per day of 42 degree API (American Petroleum Institute) light oil from the Karanambo 1 well drilled in 1982 and located 600 meters to the east of the current well.
Gaffney Cline and Associates attributed gross mean recoverable prospective resources of 128 million barrels of oil to the discovery in the December 2009 report compiled for the Corporation.
Groundstar has a 10% working interest in the contract and is the operator of the Petroleum Prospecting Licence with Canacol Energy Ltd. holding the remaining 90%. Sagres Energy Inc. is eligible to earn a 25% working interest in the PPL from Canacol by paying for 30% of the cost to drill the K-2 exploration well. Groundstar’s interest is carried to commercial production.
Groundstar had noted that drilling had been interrupted in early January 2011 due to the late arrival of some of the permanent camp facilities provided by Tuscany International Drilling Inc., which arrived on location in late January. The drilling operation since then has progressed according to plan, it said.
Drilling had started on December 31 last year.
Plans for a second exploration well on the block by May 2011 are underway, with the choice of prospect (either the Rewa or the Pirara River) dependent on drilling results from Apoteri K-2, the company has said. The second well will be operated by Canacol Energy; Groundstar will be carried for a 10% net interest.
Groundstar Resources Limited is a Calgary-based junior oil and gas company actively pursuing international exploration and production opportunities. The company currently has interests in several prospective oil and gas properties in the Middle East (Iraq), North Africa (Egypt), and South America (Guyana).
