Oslo, 27 July 2020
Interoil is pleased to announce the reopening of Vikingo’s operation after its temporarily closure on 19 May 2020 due to the effects of the COVID-19 pandemic with the lock-in effect in place. Since last Monday, 20 July 2020, Vikingo’s production has reached a stable flow of 250 barrels of oil per day. This production represents a 25 per cent rate increase over Vikingo’s production prior to its shut-in.
Production increase at reopening is promising and comes at odds at what is regularly assumed in a well reopening after a shut-in period as long as Vikingo’s closure, where it would be most likely to expect a small reduction in the flow rate when bringing the well back to production. The fact that Vikingo’s production has stabilized with a 25 per cent positive increment is encouraging and indicative of a potential higher drainage area than that initially anticipated when decision was made to drill this well.
This production flow increment is in line with the conclusions reached by Interoil technical team after the analysis of the last build-up test earlier this year in the sense that “Vikingo drainage radius is bigger than initially anticipated”. The increase also allows Interoil to remain positive about the LLA47 petroleum potential.
In relation with Vikingo’s declaration of Commercial Discovery, Interoil shall submit two documents before regulatory authorities: (i) a Development Program (DP) to be filed with the Colombian National Hydrocarbons Agency (ANH) and (ii) an Environmental Impact Study (EIA) to be filed with the Colombian National Environmental Agency (ANLA).
The approval of the DP by the ANH and of EIA by the ANLA are mandatory steps in granting the Exploitation Concession for the Vikingo Discovery. Interoil has been working in the preparation and submission and expects their approval in the coming weeks. Despite Interoil’s expectations, however, there could be delays in the approval process by either the ANH and/or the ANLA leading to a possible request by the ANH to suspend Vikingo’s production until both the DP and EIA are duly executed and approved by relevant authorities.
Leandro Carbone, CEO, commented: “We are glad with Vikingo’s flow rate after its reopening and we are confident on the results reached from a technical standpoint because they are converging towards a prolific hydrocarbon potential within LLA-47 block.”
Interoil Exploration and Production ASA is a Norwegian based exploration and production company, listed on the Oslo Stock Exchange, and with focus on Latin America. The Company is the operator of several production and exploration assets in Colombia and Argentina. Interoil currently employs approximately 50 people and is headquartered in Oslo.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.