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The Campo Rico contract area is in the Llanos basin foreland, adjacent to producing oil fields. Following a discovery, Ecopetrol has the right to participate in the development of the discovery with a 50% working interest and Emerald has the right to recover reimbursable costs from a share of production Campo Rico field
The Campo Rico field was discovered by the Campo Rico No.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 No.1 well site. Campo Rico No.4, the fourth production well, was drilled in the northern part of the field in May 2007 and Campo Rico No.5, the fifth production well, was drilled and completed in the central portion of the field and commenced production in February 2009. In December 2005 Ecopetrol accepted the commerciality of the Campo Rico field and exercised its right to back-in for 50% of the discovery by reimbursing a 50% share of the costs of exploration. Under the terms of the Campo Rico Association Contract, costs and production are now shared with Ecopetrol on a 50:50 basis.
Vigia field
The Vigia No.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 No.2 to a depth of 11,680ft and Vigia No.3 to a depth of 11,070 ft. Vigia No.1, No.2 and No.3 are on production. In the first half of 2006 Vigia No.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. Three development wells were drilled in 2008 at structurally high locations in the field to recover reserves from the Une and Gacheta formations that would not be recovered by the existing producing wells. Vigia No.5 was drilled and completed in the central portion of the field and commenced production from the Une formation in June 2008. Vigia No.6 was drilled and completed in the northern portion of the field and commenced production from the Gacheta formation in August 2008. Vigia No.4ST, a new well drilled utilising the existing top section of the unsuccessful Vigia No.4 well, was drilled and completed in the southern portion of the field and commenced production from the Une formation in October 2008.
The Las Acacias No.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 elected for sole-risk field exploitation status. In the second quarter of 2009, Ecopetrol elected to enter joint operations in the Vigia field. Following reimbursement of costs under the sole risk terms of the association contract, expected to occur in the third quarter of 2009, further costs and production will be shared 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 No.1, was drilled in April 2006 to a total depth of 11,265ft and discovered oil in the Mirador formation. Centauro Sur No.2 was drilled to 10,865ft and completed as a production well in July 2006. Centauro Sur No.1 and No.2 are on production. Production is transported by pipeline to the Campo Rico field where it is processed using existing field facilities. Ecopetrol accepted the commerciality of the Centauro Sur field and exercised its right to back-in for 50% of the discovery by reimbursing a 50% share of the costs of exploration. Under the terms of the Campo Rico Association Contract, 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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