Petrolatina to connect Serafin-1 well to Columbia's mains

Petrolatina Energy Plc (LON:PELE) announced that it has commissioned works to enable their Serafin-1 Columbian role to start producing in Q4 2010. 

The independent oil and gas exploration, development and production company revealed that it has given the green light for their Serafin-1 well to be connected to the main Columbian gas trunk line. 

According to the report, the well is expected to produce up to 7MMscf/d, with an estimated GIIP of 5.37 billion cubic feet, based on a recent assessment by Rider Scott. In January 2007, the well was tested at flow rates of 14 million cubic feet of gas per day. 

The company confirmed it has resolved all previous technical and legal issue relating to the connection of the well to the main gas trunk line, which has enabled them to construct a 'city gate' gas handling station to connect the well to the Ballenas-Barrancabermeja gas trunk line which reportedly  carries the bulk of Colombia's gas production from the Caribbean coast to the gas consuming cities in the centre of the country.

The CEO of Petrolatina, Carlos Rodriguez, commented, 

We are delighted to have entered into this contract to tie-in the Serafin-1 well to the main Colombian gas trunk line to enable commercial gas sales from the Serafin gas well to commence later this year. We expect that the cash flows to be generated by this project will help fund our plans to drill up to a further eight new wells across all of our Colombian assets over the remainder of this year with the aim of increasing production and substantially increasing Possible Reserves, as well as moving an element of them into the 2P category."

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