Heavy Earth Resources reports drill-ready prospect inventory for Colombia’s Morichito Block

Heavy Earth Resources has reported new drill-ready prospects from the recently completed 3-D seismic survey of the Morichito Block in the Eastern Llanos Basin of Colombia.

Rincon Energy, the company’s geophysical and geological advisors, has prepared the newly identified prospect inventories, which include Norte 1, Norte 2, Morichito-8, Bototo-1 and Morichito-5 (deeper formations).

The newly identified prospect inventories, based on recently integrated 3-D seismic data, cover a gross upside P10 recoverable resource exposure of 26.37 MMBO and a P50 resource case of 11.78 MMBO.

Heavy Earth Resources chief executive officer Grant Draper said the drill-ready prospect inventory will support the company’s multi-well exploration programmes in 2013 and 2014.

"As part of the process of evaluating the resource prospects of the Morichito Block, we are pleased to have retained Petrotech Engineering to produce a resource report for the new prospects in the Morichito Block," said Draper.

"We believe that the numerous pay zones (four to seven) in each of the newly identified targets represent exploration opportunities to evaluate before determining our multi-well 2013 and 2014 exploration programs.

"The Company’s first priority is to commence producing the Morichito-5 discovery before beginning to exploit the potentially significant undiscovered resources that have been demonstrated in the Morichito discovery fairway with this 3-D seismic survey."

Petrotech Engineering has been selected to evaluate the resource interests for the newly identified drill-ready prospects.

Petrotech Engineering president John Yu said, "The resource evaluation will be conducted in accordance with the Society of Petroleum Engineers guidelines for before tax net present values using low, best and high estimates."

Heavy Earth Resources owns a 50% working interest in the Morichito Block.