Project Profile
Location: Catatumbo Basin
The Catatumbo Basin is a southwest extension of the Maracaibo Basin in Venezuela which has produced more than 450 MMbl ofs oil and 500 Gcf of gas since 1920 and is one of the most prolific basins in Colombia. The Santa Cruz Block is located in the Catatumbo Basin in Colombia and neighbors the producing Rio Zulia field, which has a cumulative oil production of approximately 180 million barrels.
PetroMagdalena was the original licence holder at Santa Cruz Block, and later farmed out 30% of its interest to a private Colombian investment fund in 2011. The investment fund took 30% interest in return for a 60% carry on the first exploration probe and 45% on a proposed second exploration probe.
The cost of drilling the first well was estimated to be approximately US $12 million, of which the Company\'s share was approximately US $5 million.
In 2012, PetroMagdalena was bought by Pacific Rubiales Energy Corp. During the second quarter of 2013, Pacific Rubiales completed the Phobos-1X exploration well, which indicated hydrocarbons present in the Mirador and Barco formations. However, the pressure and fluid tests suggested these were only traces, and the well was plugged and abandoned. Following the duster, Pacific Rubiales handed the Santa Cruz block back to Colombian regulator Agencia Nacional de Hidrocarburos, during a restructuring which eventually saw the firm renamed Pacific Energy.
Operators (Former, licence rescinded):
Pacific Rubiales: operator with 70% interest
private Colombian investment fund: 30% interest