A Chevron Corp. unit has signed its second association contract with Colombia's state owned Empresa Colombiana de Petroleos (Ecopetrol) covering exploration and development in Colombia.
The new association contract, Sumapaz, lies in the far eastern edge of the Upper Magdalena basin between the Upper Magdalena River and the Andean foothills.
The contract area contains several nonproducing oil fields.
Exploration and development is heating in the region because a pipeline under construction roughly along the route of the existing Upper Magdalena Valley pipeline will provide a means to transport increased Upper Magdalena oil production. A number of oil fields have remained shutin there for lack of transportation.
Meantime, Chevron is pressing development activity in the far western Llanos basin of Colombia.
Elsewhere in Colombia, Garnet Resources Corp., Houston, is stepping up drilling in the Putumayo area of Colombia.
CHEVRON'S CONTRACT AREA
Chevron Petroleum Co. of Colombia's association contract covers about 435,000 acres in the rugged terrain between the eastern Andean Cordillera and the Upper Magdalena River.
It is about 50 miles southwest of Bogota. Plans call for a 6 year exploration term with a 150 line km seismic survey and a geologic field program the first year.
At least one exploratory well might be drilled in each subsequent year of the term, depending on results.
Chevron will be operator and during exploration phase hold 100% interest in the contract area.
Any production would be divided between Chevron and Ecopetrol on a sliding scale based on cumulative production after payment of government royalties.
LLANOS DEVELOPMENT PLANS
Chevron plans an expanded development program in Chichemene field after a successful stepout increased reserves to 16.5 million bbl of oil.
Although details are not disclosed, Chevron hopes to begin expanded development in Chichemene in 1991. It plans to spud a step-out, 3 Chichemene, next month.
Talks are under way with Ecopetrol about upgrading a section of the existing Upper Magdalena Valley pipeline between the cities of Apiay and Porvenir.
Chevron currently is trucking Chichemene crude production of about 1,100 b/d to market.
In addition, Chevron has boosted production to 13,500 b/d in Castilla field. It also is trucking the very low gravity Castilla crude to market in Bogota.
Chevron holds a 50% interest in each of the two Llanos fields.
PUTUMAYO DRILLING
Garnet's Argosy Energy International unit confirmed its Linda discovery 3 miles to the east in the Putumayo area.
Its 2 Linda flowed 89-102 b/d of 20.6 gravity crude through 1/2 in. and 3/8 in. chokes on a 32 hr drillstem test of Villeta N perforations at 8,328-32 ft and 8,339-45 ft.
The company plans further testing of the Villeta N sand.
The Villeta N sand is present but untested in the 2 Toroyaco well suspended last July, and Garnet/Argosy is moving a rig back in to test it.
Meantime, Garnet/Argosy is drilling ahead in its 1 Mary wildcat about 6.5 miles northeast of the 1 Linda. Last week it passed 6,400 ft en route to projected total depth of 8,100 ft.
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