Frontera announces Ecuador oil and gas find

Frontera Energy has made a new oil and gas discovery in Ecuador's northeastern Oriente basin, the Canadian company said on Wednesday. 

Hydrocarbons were identified at the Jandaya-1 wildcat well, the first prospect to be drilled on acreage awarded during the 2019 Intracampos bid round.

The well is located in the Perico block, in which Frontera holds a 50% operating stake alongside GeoPark.

"Jandaya-1 was drilled, completed and tested on time and per our expectations," Frontera CEO Orlando Cabrales said in a statement.

"We anticipate putting the well on a long-term test in February, once permits are obtained. We're optimistic that the Jandaya-1 well represents the first of many near-field opportunities already identified across the Perico block," he added. 

Frontera said it encountered a potential hydrocarbon-bearing reservoir within a vertical column measuring 10,975ft (3,345m) in three formations. 

An initial 24-hour test delivered an average flow rate for the Lower Hollin formation of 750b/d of oil and 1,000f3/d of natural gas, with an average water cut of 17%. 

"Frontera is now preparing the required permits to move forward with a long term test for at least six months or a longer period of time if approved by authorities," the company said. 

In addition to preparing an environmental impact assessment for permitting purposes, Frontera said a new drilling campaign at the Tui-1 exploration well, in the southern section of the Perico block, is on track to begin in February.

Frontera's acreage on the Perico and Espejo blocks span around 16,700 acres (6,758 hectares). The blocks are located near existing production and infrastructure in Sucumbíos province.