Talisman Energy's (TSX: TLM, Stock Forum) affiliate, Talisman (Colombia) Oil & Gas, and Ecopetrol S.A. (TSX: ECP, Stock Forum) jointly announced that the presence of hydrocarbons had been proven in the Nueva Esperanza-1 exploratory well (A2b) located in block CPO-9, Department of Meta, Colombia.
According to the news release, Nueva Esperanza-1 was spudded on July 18, 2014 and hit a total depth of 12,056 feet on September 26, 2014. An initial 8-day flow test utilizing an electro submersible pumping system stabilized at a daily flow rate of 910 barrels of 8º API crude oil with less than 2% water cut during the last day of flow.
Both companies are examining the results and with file an application with Colombian officials to put Nueva Esperanza-1 on a long term test.
Approval has been given for two down-dip appraisal wells, the first of which, Nueva Esperanza-2, commenced drilling activities on November 16.
This discovery makes the second for Talisman and Ecopetrol in block CPO-9 with the first occurring in the Akacias structure in 2010. Commercialty in the Akacias Field was declared in December 2013 and both companies continue to await receipt of a development license.
Ecopetrol is the operator of block CPO-9 and holds a 55% interest, while Talisman (Colombia) Oil & Gas owns a 45% interest in the license.
Talisman Energy was in the news recently when the Calgary-based company released Q3 2014 financial results at the beginning of November.
Shares gained 2.06% on the news to $6.94 per share.
Currently there are 1.0b outstanding shares with a market cap of $7.2 billion.