Pebercan oil sales down 18.3% in 2003

Canadian company Pebercan's oil sales fell 18.3% to US$44.7mn in 2003 from 2002, as a result of lower production in Cuba due to insufficient treatment capacity, Pebercan said in a statement. Difficulties in associated gas and water treatment led to lower production at the wellhead in 2003 in order to limit gas volumes and avoid infringing Cuban environmental regulations, the statement said. To remedy the problem of limited production capacity, the company initiated a program in the fourth quarter of 2003 to upgrade its treatment facilities, build a gas pipeline to evacuate the gas safely and construct a water treatment plant. The company resumed its drilling activities on January 5, 2004 and completed the Seboruco 4 well in the first quarter. Seboruco 4, drilled between Seboruco 3 and Faustino 1, confirmed that the Faustino and Seboruco accumulations are part of the same deposit, Pebercan said. Drilling of the Faustino 2 well will begin soon and Pebercan and its partners are updating a development plan to optimize the production on the field, the statement said. The company is currently finalizing the interpretation of 3D seismic studies on block 7, which will result in drilling of at least one new exploration well in 2H04. The same 3D seismic will also allow Pebercan to refine the definition of the Canasi and Seboruco/Faustino fields, the statement added. All Pebercan's production comes from Cuba.