The Morpho Block lies in the western foothills of the Eastern Cordillera. The Corporation acquired a 50% Private Participating Interest in the Morpho Block in May 2009, from Ramshorn. The Corporation has filed for ANH (National Agency for Hydrocarbons) approval in Colombia for the assignment to the Corporation of a 100% Participating Interest and for ANH approval of the Corporation as Operator, subject to signing a definitive E&P contract with the ANH.
During the third quarter of 2009 the Corporation as operator drilled a commitment well, Morpho-1, to a depth of 6,750 ft. as a twin to a previously drilled well, Zeus-1 (drilled by Ecopetrol in 2007). Out of four sandstone reservoirs found, one was tested. This was a 22 ft. sand at a depth of 4,600 ft. tested small (70 to 100 bopd) quantities of 37.6 (degree) API oil.
On July 28, 2010, the Corporation spudded the Baco-1 well on the Morpho block in the Middle Magdalena Valley (50% participating interest) where it intends to test the intermediate (10,000 ft. – 12,700 ft.) sandstone reservoirs identified in the Zeus-1 well, drilled, but not tested, by Ecopetrol in 2008. This well is expected to take approximately 60 to 70 days to reach total depth, with completion and testing to follow, subject to drilling results.
The Corporation also now plans to test at least three of the shallow (4,600 ft. - 6,700 ft.) sands identified in the Morpho-1 well, drilled by the Corporation in 2009. A service rig will be moved to the Morpho-1 location and three zones will be stimulated to determine the commercial potential of these sands. The program is expected to commence in October and take 30 - 45 days.