Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) has confirmed an oil discovery in the Bilby-1 exploration well, drilling on block S-M-1166, in the Santos Basin, offshore Brazil.
The Bilby-1 well was drilled as part of an agreement announced by the Company on September 18, 2012, as a minimum work commitment for five offshore blocks (S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166), where the Company holds a 35% participating interest (subject to approval by Brazil's Agência Nacional do Petróleo, Gás Natural e Biocombustíveis ("ANP")).
Two additional exploration wells have been drilled on the blocks as part of the agreement, the Kangaroo-1 well, previously announced as an Eocene light oil discovery, and the Emu-1 well which was plugged and abandoned after failing to discover hydrocarbons in economic quantities.
As announced by the operator of the blocks, Karoon Gas Australia Ltd. (ASX: KAR) (see www.karoongas.com.au), the Bilby-1 well has been drilled to a measured depth of 3,854 meters (approximately 12,645 feet). Oil is contained within an inter-bedded sand and shale interval of late Cretaceous age, confirmed from sampling over a 200 meter (656 foot) gross section so far. The discovery has been verified by wireline petrophysical, pressure data, fluid sampling and mudlog analysis. The well is positioned approximately 150 meters (492 feet) down dip from the trap crest (as interpreted on seismic data).
Wireline testing of the discovery is continuing, with full results expected over the coming week. The well will then drill ahead as planned to an expected measured depth of 4,573 meters (approximately 15,000 feet).
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