PetroNova Inc. ("PetroNova" or the "Company") (PNA.V), a company engaged in the exploration and development of oil and natural gas resources in Colombia , today provided an operational update on the drilling of the Canelo Sur-2 well on its PUT-2 Block, located in Colombia's Putumayo Basin.
The Canelo Sur-2 exploratory well was spud on October 26, 2013 , after setting surface casing at 2,195 feet. While drilling was proceeding, operations had to be suspended as Community unrest prevented the crew from accessing the rig for a total of six days. Once operations resumed, bottom was reached with considerable difficulty, experiencing severe drag and pack off attempts, which indicated that the exposed Orteguaza shales were severely affected by the exposure time to water-based drilling fluids. Trips became increasingly more difficult and intermediate casing was run, however the shale section prevented it from reaching bottom. Attempts to try to wash the casing string deeper resulted in multiple mechanical and fishing problems. A decision was reached to cut the casing at 2,480 feet, retrieve the casing, set a cement plug, and drill a new hole from below the shoe of the 13 3/8 inch surface casing at 2,195 feet.
Currently the Canelo Sur-2 ST well is drilling at 2,326 feet and, pending no further issues, PetroNova expects to release well results in February 2014 . PetroNova currently holds a 75 percent working interest in the PUT- 2 Block; the remaining 25 percent is held by Suroco Energy pursuant to the farm-out agreement announced in July 2013.