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The Campo Rico contract area is in the Llanos basin foreland, adjacent to producing oil fields. Campo Rico field
The Campo Rico field was discovered by the Campo Rico #1 exploration well, located near the crest of the Campo Rico structure, drilled to a depth of 11,795 feet. The well was declared an oil discovery in the Mirador sands in March 2004. Two further production wells were completed in the field in 2005, both drilled directionally from the Campo Rico #1 well site. A fourth production well, Campo Rico #4, was drilled in the northern part of the field in May 2007. All 4 Campo Rico wells are on production. In December 2005 Ecopetrol granted commercial status to the Campo Rico field and exercised its right to back-in for 50% of the discovery. Under the terms of the Campo Rico Association Contract, Ecopetrol receives 50% of production after the deduction of 8% royalty oil and Emerald has been reimbursed for 50% of the cost. Costs and production are now shared with Ecopetrol on a 50:50 basis.
Vigia field
The Vigia #1 discovery well was drilled in March 2005 to a total depth of 11,120ft and flow tested oil from the Une and Gacheta sands. Two further production wells were drilled from the same surface location, Vigia #2 to a depth of 11,680ft and Vigia #3 to a depth of 11,070 ft. Vigia #1, #2 and #3 are on production. In 1st half of 2006 Vigia #4, a step-out appraisal well, was drilled to test a possible westward extension of the Vigia field; the well failed to discover commercial hydrocarbons and was plugged and abandoned.
The Las Acacias #1 exploration well, to the south west of the Vigia Field, was drilled to 10,930 feet and failed to recover hydrocarbons when tested. The well has been configured as a disposal well for the water produced from the Vigia field. In July 2007, Ecopetrol elected not to exercise its 50% back-in right in the Vigia field and Emerald has elected for sole-risk field status. Emerald will continue to pay 100% of future costs and benefit from 100% of production until the sole-risk reimbursable costs on this field have been recovered, after which Ecopetrol will join operations with further costs and production being shared with Ecopetrol on a 50/50 basis. Centauro Sur field
The Centauro Sur field lies to the southwest of Campo Rico field. The discovery well, Centauro Sur #1, was drilled in April 2006 to a total depth of 11,265ft and discovered oil in the Mirador formation. Centauro Sur #2 was drilled to 10,865ft and completed as a production well in July 2006. Centauro Sur #1 and #2 are on production. Production is transported by pipeline to the Campo Rico field where it is processed using existing field facilities. The Centauro Sur field was awarded commerciality status by Ecopetrol and joint operations commenced. Costs and production are now shared with Ecopetrol on a 50:50 basis.
Exploration
In 2005, Emerald acquired a 3D seismic survey that covers some 172 sq km of the Campo Rico block. In addition to appraising the development potential of the existing fields, the survey identified a number of new prospects in the block. The Company is seeking partners to progress with the exploration of these prospects.
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