Venezuela is the largest province of proved oil reserves in the Western hemisphere, with 172.3 billion barrels of proved oil reserves at year-end 2009 (the most recent year for which data is available). Petrodelta, our 32% equity affiliate in Venezuela, controls approximately 247,113 gross acres in concessions covering six oil fields. Nearly 90% of the acreage is undeveloped, providing us with significant multi-year development upside from these prolific fields with multiple stacked pay zones.
In 2010, Petrodelta drilled and completed 16 oil wells, two more than the company drilled in 2009. Petrodelta?s drilling success increased gross oil production to 8.6 million barrels of oil (MMBO) in 2010, an increase of 9% over 2009 and 57% higher than 2008. This rapid growth demonstrates that if capital and rigs are applied, Petrodelta?s assets are capable of generating multi-year, double-digit increases in oil production.
Petrodelta has been executing a long-term evaluation and appraisal drilling program in the six fields it operates, focusing on the three new fields awarded to the company. In 2009, the company began drilling in the El Salto field, where two appraisal wells were drilled that year, one of which was brought on line at 3,000 BOPD. In 2010, Petrodelta drilled three more wells at El Salto with similar production rates and which discovered a previously unproven extension of Block 5. In 2011, Petrodelta is building the first phase of additional pipeline and tank capacity at El Salto to handle up to 10,000 BOPD. The successful drilling campaign continued in the Temblador field, raising that field?s production rate to over 11,000 BOPD.
The nature of the high quality assets in Venezuela supports rapid conversion of unproved resource into proved reserves. At year-end 2010, combined proved and probable (2P) reserves net to Harvest from Petrodelta were 103.6 MMBOE, a 24% increase over year-end 2009. That increase could not have occurred without a prolific asset in which to drill.
Petrodelta?s self-funded 2011 capital budget of $224 million will be allocated to drilling and infrastructure development. Petrodelta?s current operations plan calls for running a two-rig drilling program to drill 28 new oil wells, two water injector wells, one gas injector well and to build pipelines and related facilities.
So far in 2011, the company has drilled four development wells, one each in Uracoa, Temblador and El Salto field, plus the first well in Isle?o field drilled since 1957. The Isle?o ISM-8 well is currently producing 1,800 BOPD of 15.5 API crude. With 220.6 MMBOE of proved, probable and possible reserves, Petrodelta has a well-defined and visible long-term growth path in sight.