Neiva - Working the Reservoir

Neiva's Honda reservoir consists of sand/shale sequences totaling up to 1,500 feet of gross pay containing natural gas, oil and water. These sands may not be amenable to waterflood because of the multitude of individual sand/shale sequences over a massive vertical column. Petrominerales's program includes infill drilling, pump and gathering system optimization, and workovers including re-perforating and scale treatment.

The Honda is Neiva's primary producing zone and Petrominerales's initial target. Historically, successful new Honda wells averaged 300 barrels per day initial production. Petrominerales has drilled five Honda zone wells and performed 13 workovers. Petrominerales has identified a further 27 Honda drilling locations along with a series of recompletion candidates.

The Company sees strong potential in the slightly deeper, largely undeveloped Doima-Chicoral zone. Petrominerales drilled one new well into this zone in 2003 with initial production exceeding 180 barrels per day and performed one stimulation workover. Petrominerales has identified up to seven additional Doima-Chicoral locations.