Canadian energy explorer Talisman Energy Inc. ( TLM ) and its exploration partner, Colombia-based Petroleum Company, Ecopetrol S.A. ( EC ) announced the commercial viability of the Akacías field located in Block CPO-9 in Colombia.
The partners are in the process of completing the nine-well appraisal program in the area. Of this, eight appraisal wells have already reached successful completion in 2013 while one is underway. With the declaration of commercial viability and a field development plan to be submitted within the next 90 days, development and production activities should soon start in the area.
Originally, the field was expected to hold around 1.3 billion barrels of oil with at least a 10% recovery factor. The three oil wells that were put on long-term test produces 7-9 API oil of around 5,300 barrels per day. To date, the Akacías-1 discovery well - that started long-term test in May 2011 - has produced around 1.5 million barrels of oil with average production of over 2,000 barrels of oil per day (bopd).
The Akacías field is expected to significantly contribute toward achieving Ecopetrol's objective of producing 1 million barrels of clean oil equivalent in 2015 and 1.3 million barrels of oil equivalent in 2020.
TLM has a 45% stake in production whereas Ecopetrol holds the remaining 55% stake and acts as the operator of the Block.
TLM is a major independent oil and gas exploration and production company, with operations in North America (primarily Canada) and several international regions.
TLM currently has a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked energy sector stocks such as Abraxas Petroleum Corp. ( AXAS ) and Harvest Natural Resources Inc. ( HNR ). Both these stocks presently sport a Zacks Rank #1 (Strong Buy).