HEVI’s solely Colombia-focused subsidiary, DCX SAS, owns a 50% operating interest in an E&P Contract consisting of 57,252 gross acres (23,169 gross hectares), that includes the Morichito block located in the prolific East Plains of the Llanos Basin near the municipalities of Orocue and Mani in the Casanare department of Colombia. DCX also owns a 25% working interest in an E&P Contract consisting of 68,473 gross acres (27,710 gross hectares), that includes the La Maye block located in the Lower Magdalena Basin, Colombia. Located in Bogota, Colombia, DCX SAS’s operations are devoted to managing HEVI’s interests in the exploration and development of the Morichito and La Maye blocks.
The Morichito block is surrounded by analog production to the north, east, south and west. To the south, Morichito is adjacent to C&C Energia’s productive Cachicamo and Cravoviejo blocks and to the north of CEPSA’s 20,000 bopd Caracara Field and Hocol, S.A.’s 20,000 bopd Guarrojo block.
Based on seismic data and the data from DCX’s discovery well, management believes the exploration plays on the Morichito block are on the same order of magnitude as in these adjacent blocks. In March 2012, the Morichito-5 discovery well was declared to be “commercially viable” and HEVI announced plans to start production in 2013.
The La Maye block is adjacent to prolific oil and gas production in the Cicuco, Boquete and La Creciente Fields. The producing reservoirs in the La Maye block are porous and permeable shallow water sandstones and limestones easily drilled at depths between 2,500 and 3,500 feet.
The Cienaga de Oro formation is sandstone and the Cicuco formation is reefal limestone over and around granite basement highs. Located updip of the Cicuco & Boquete Fields, La Maye’s geology is shallow water high porosity sandstone.
An exploration well, the Noelia-1 was drilled on the La Maye block in October of 2009 and is awaiting testing. HEVI has identified three additional drilling prospects with multiple additional uphole zones and deeper potential horizons on the block.