Project Profile
Value: US$30M
Location: Putumayo department, South West Colombia
Production: 250 BOPD of 24 °API crude (from one well)
Nancy-Burdine-Maxine (NBM) is an oil and gas field in South West Colombia. Gold Oil Plc is the operator of the field. In May 2006, the company acquired a 40% beneficial interest in the Licence. Since then the Company has increased its equity to 58.08%. The NBM fields were discovered by Texaco and put on stream in 1976. The Nancy 1 well produced initially at 1,400 bopd and declined to 230 bopd by 1978 when pumping was added boosting production to 670 bopd. Argosy International then assumed control and in 1995 the fields were abandoned for economic reasons with Nancy 1 producing at 200 bopd with no water. The fields were returned to Ecopetrol who licensed them to Union Temporal in 2003 as part of the marginal field sell off being pursued by Ecopetrol at that time. The term of the Licence is to exploit a known developed oil field. The royalty is 20% before Ecopetrol takes a 41% share with no contribution to either capital or operating costs.
In April 2008, a geological and geophysical report was commissioned and completed by one of the Union Temporal partners (Bioss). This report concluded that there were many oil zones in the Nancy and Burdine fields that had not been perforated and that areas of the field were not being effectively drained. The company took the view that these fields had the potential to deliver more oil provided a proactive approach was taken to the development. The company commissioned an independent reservoir engineering study by Nutech Energy out of Houston and subsequently an independent reserve report by Morning Star also out of Houston. Based on that study, the company, on July 2, 2008, bought out one of the 18.05% partners within the Union Temporal, Invepetrol, thus resulting in the company taking control and a total working interest in the NBM project of 58.08%.
The Nancy-1 well continues to produce with steady production of around 250 BOPD of 24 °API crude from the Villeta formation. Production testing of three idle wells in the Burdine field was completed and the results are still under evaluation. Workover programmes are being prepared for the Burdine wells, in conjunction with an integral surface development plan.
Operators:
Gran Tierra Energy : Operator with 100% interest