www.blackrockoilandgasplc.co.uk
www.vsaresources.com
www.oilbarrel.com
Presentation from Thursday 6th July 06 can be seen on oilbarrel !


Monterey appraisal well suspended pending Wintershall evaluation. 1/12/06
BLR and Kappa in dispute.
BLR to meet with Kappa within next two weeks 1/12/06

The write-up was, however, optimistic about Bukhara, albeit that the real issue is going to be whether the waxy crude can be extracted. If Bukhara can be brought onstream then it would be a real company-maker for BLR.

Black Rock Oil & Gas Inches Towards Maiden Production In Colombia While Global Energy Development Plc Plans Busy Second Half As Output Continues To Mount
Black Rock Oil & Gas took another step towards first production this week with news that the latest well on the Arce heavy oilfield in Colombia flowed just over 30 barrels per day. The Arce-4 well in the Las Quinchas licence was drilled down to 3,000 ft and encountered a gross 300 ft column of 16-17-degree API oil. The crude is liquid at room temperature and flowed just over 30 bpd (30.5 to be exact) using downhole mechanical pumps.

This rate is in line with the other wells tested to date on the field, which is reckoned to hold around 5 million barrels. Arce-2 flowed between 10 and 60 bpd while Arce-3 flowed up to 36 bpd of sticky 13.5-degree API oil. (("THESE HEAVY CRUDES ARE COMMON IN THIS AREA of the Middle Magdalena Valley of Colombia and their VISCOSITY IS NO BARRIER TO COMMERCIAL PRODUCTION: many of these fields are in PRODUCTION and there is a SPECIALIST REFINERY with SPARE CAPACITY in the area. ))

FROM OILBARRLEL.COM









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Indeed, Black Rock and its 50/50 partner Kappa Energy plan to bring the field into commercial production before year-end. The rig is now due to re-complete the Arce-2 well on the field while the partners await the arrival of steam production equipment. The start-up of steam testing operations could increase flow rates from the field by a factor of five. If successful, additional development wells will be drilled into the field to further increase production.

As chief executive Ivan Burgess pointed out at last weeks oilbarrel.com conference in London, steam flood operations on the adjacent Chicala oilfield which borders Las Quinchas has taken output per well to 150 bpd. At this point the numbers on the Arce deposit start to look very interesting.

The licence is also home to the Baul oilfield, which was discovered in 1960. The Baul-3 well - five wells were drilled into the structure - produced over 16,000 barrels from a 14-feet sand but was shut in the following year due to low oil prices. Estimated recoverable reserves are put at 2-3 million barrels of oil of which 1 million is contained in the proven 14 feet sand. Black Rock and Kappa plan to re-test one of the old wells this quarter. If successful, this could add a second near-term production project to the books.

The Bukhara oilfield looks promising. It holds 175 ft feet of net pay and could hold recoverable reserves of heavy waxy crude. However a test in 2005 proved inconclusive due to poor quality cementing downhole. There are plans to re-test Bukhara next year, by which time Black Rock should have made the transformation from exploration start-up to junior producer.

Nice one Aldor3. This is just the beginning with a whole raft of new drilling coming up too! :::
Baul 3 ----September 06
Arce 5 ----October 06
Arce 6 ----November 06
Arce 7 ----December 06
Arce 8 ----January 07
Arce 9 ----February 07

We can look forward to lots of good news and hopefully the SP will go north appropriately.

Interesting article :

Saudi Arabia and U.S. oil company Chevron Corp. have successfully extracted previously unreachable Saudi crude by injecting steam into oil fields to loosen sludge-like deposits, Chevron said.

Steam injection tests began on six wells this year in the Wafra oil field, located in a neutral zone shared by Kuwait and Saudi Arabia, Chevron spokesman Michael Barrett said Wednesday. Oil from the area is shared equally by both Related Products

Petroleum Refining in Nontechnical Language, 3rd Ed.

Well Production Practical Handbook


countries.

Saudi Oil Minister Ali Naimi said steam injection could be used to add "tens of billions" of barrels to the kingdom's proven reserves of 260 billion barrels--the world's largest, the Wall Street Journal reported this week.

The dense sludge-like oil had previously been considered unrecoverable, since it is so thick it cannot be pumped to the surface like lighter crudes. But injecting steam into the reservoir heats the viscous, heavy oil to a syrupy consistency that allows it to be pumped out, Barrett said.

Rising prices have pushed oil companies and governments to try to capitalize on languishing deposits of oil that were previously thought too difficult to exploit. In Canada, steam is also being used to coax oil from the enormous oil sand deposits in northern Alberta.

Crude oil prices have more than tripled over the past 4 years on surging demand in China, India, and the United States. Global demand has already swallowed up Saudi Arabia's entire production of light crude.

Chevron, based in San Ramon, Calif., will incorporate its test results into a large-scale effort to extract oil from the Wafra field, Barrett said.

Currently, Chevron operates just one steam injection well, four production wells, and one observation well in Wafra. That will grow to 16 steam-injection wells and 25 producing wells, Barrett said. The U.S. oil giant declined to say when commercial production would begin.

Chevron and Saudi oil officials want to see if the technique will work in the trickier Middle Eastern oil geology dominated by porous rock formations. Besides Wafra, the Saudis are considering using steam injection at the gigantic Manifa field, also thought to cradle a large reservoir of heavy oil, the Journal reported.

Barrett said Chevron uses steam to heat and recover 650,000 barrels of heavy oil per day, mainly from fields in Bakersfield, Calif., Indonesia, and Venezuela.

Hi Ruth, yes a good article, have heard and seen this before where steam assisted drainage is used. Apparently best results come from sandstone as very porus.

Does anyone know when the next update is due on BLR?

Marcel, according to the recent presentation, the next steps are the steam testing of Arce 2 - 4, for which equipment should be arriving shortly and which will run through till the end of the year, and from mid-August the drilling of gas prospect Quad 49 (Monterey) in the North Sea, which should be completed by the end of October. Those are the likely news highlights for the summer, barring delays!

Link to presentation

Looks like the markets may now head north again following Fed chiefs hints at rate rise pause. Glad I topped up again @ 1.15 earlier in the week. Fingers crossed that some stability ensues...

The current fall is not a general market problem, but a correction from the oil exploration 'oil dot com' boom. It looks like continuing. It is hitting the oil explorers, not the oil producers.

article in todays mage flow rates should increse over the coming months at Arce 4 well!.

Topped up again yesterday...the lowest I've been able to get in at over the past yr or so I've been buying....onwards and upwards... can only go up from here with all the good news due...(apart from the odd blip!)

Skyhigh good buy.
Steaming equipment now in Columbia according to email received from Blr to another bulletin board member so should be onsite soon!

Rutherford,
Yes, I hope it'll be a "good buy" and not goodbye!

Ruth, doesn't the steam have to be deployed and then left before testing flow rates? If I remember correctly on SER website theres info regarding Steam Assisted Gravity Drainage. Which implies steam deployed and then left for oil to move to base of well before flow testing can be carried out to see if its worked. Website below if your intrested in more info on this process. Would imagine temperatures approximatly the same in both areas of usage and humidity. Your thoughts appreciated...

http://www.seftonresources.com/assets/thermal_oil_recovery.asp

Very good link Explosive:SEY


I believe BLR (Kappa) will use SAGD although BLR have not stated as far as I am aware although they are saying they will be producer this year so assume it will take a couple of months for the steaming to take effect and they have mentioned potential increase in production will be 5 to 10 times initial rates although in their last RNS they were more conservative saying 3 to 5 times. Arce 2 I believe was mentioned as the one they will use to pump the steam down and then will be producing from the other 3. Supposed to be drilling 5 more on Arce before year end.
8 wells producing an average of 30 bbls /day and with steaming increasing it 5 fold we could be looking at 1200bbls/day. 50% belonging to BLR at say $40 dollars per barrel:
600@40 =$24000
365@24000= $8,760,000
Obviously costs would have to deducted for pipelines etc.but $6000000/yr. from Arce looks good in comparison to BLR,s value.
I believe they will drill a lot more wells on Arce if steaming is doing the trick and I have read that when the field is fully commercial they anticipate 50% of 3200bbls/day (2 years time).
Would add to all this that if they hit gas on Monterey (North Sea) in the next couple of months I believe that is the company maker.
Good luck.

I agree your assessment, Rutherford. It's all (hopefully) just a question of being patient.

Soul: been a lot of patience required with BLR but now should pay dividends!

Rutherford, I have to laugh at your unfortunate choice of words as I think that dividends are the last thing that BLR is going to be paying in the near term, HOWEVER some serious capital growth is on the cards!

My apologies; I have university a degree in Pedantics :o)

I wondered who would comment on that!

I have university a degree in Pedantics

and maybe a touch of dyslexia! LOL

Don't want to sound negative however I think 5 fold for steam production is a little high. There have been previous cases where steam has been used and no increased output has been seen. In others it only adds a small 1.5 multiplier to output. Here though I suppose as Kappa foot the bill any gain is an advantage to the BLR sp. Very interesting times ahead and plenty of equity growth knocking at the door!