CALGARY, ALBERTA--(Marketwire - Jan. 9, 2012) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG)(BVC:PMGC) is pleased to provide an update on our operational activities in Colombia and Peru, along with our upcoming conference schedule and updated corporate presentation.
Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia
We have four wells active in the Llanos Basin region. On Block 31, we recently reported that logs from our Jamuco-1 exploration well indicate 52 feet of potential net oil pay in the Guadalupe, Lower Sand 1 and 2 formations. We are currently conducting a multi-zone testing program and expect results later in January. In addition, our Iboga-1 well reached total depth at 14,352 feet on January 3rd. Well logs indicate 42 feet of potential net pay in the Guadalupe and Lower Sand 2 formations and the well is being cased for testing.
On the Corcel Block, we commenced drilling operations on our Tente-1 exploration prospect on December 27th, and expect to have drilling results from this well in March.
On the Guatiquia Block, we began drilling the Yatay-2 well on November 21st and reached total depth at 11,960 feet on January 1st. This well is targeting by-passed pay interpreted in the Guadalupe formation from the original discovery well. We are cementing the liner and expect to have production results in late January.
Foothills Blocks (Block 25, 31, 59 and 15), Deep Llanos Basin, Colombia
In our Bromelia-1 exploration well, we cemented the 13 3/8" casing at 11,765 feet, which is our deepest setting of this diameter of pipe in our operations to date. The well is currently drilled to 16,094 feet and we plan to set 9 5/8" casing at 16,900 feet and then drill out to an anticipated total depth of 18,800 feet. We expect to have logs from this potentially high-impact exploration well in February.
Our second exploration prospect on Block 25, the Canatua-1 prospect, will commence drilling following Bromelia-1.
Central Llanos Basin (Casimena, Castor, Casanare Este, Mapache Blocks), Colombia
On our Casimena Block, we drilled our Yenac-6 appraisal well on December 1st to define the southern boundary of the Yenac pool defined from 3D seismic. Well logs indicate 34 feet potential net oil pay in the well, 20 feet in the Upper Mirador formation and 14 feet in the Lower Mirador formation. We production-tested the Upper Mirador interval and recovered 1,664 bopd of 16 degree heavy API oil at a 31 percent water cut, and have placed this well on long-term production test.
In our previously drilled Yenac-1 and 2 wells, we produced 16-18 degree API oil from the Upper Mirador, and our Yenac-3 well produced 12-14 degree API heavy oil from the Lower Mirador formation.
Following Yenac-6, we drilled our Yenac-5 appraisal well. Well logs indicate 58 feet of potential net pay, 35 feet in the Upper Mirador formation and 23 feet in the Lower Mirador formation. Yenac-5 penetrated the top of the Mirador formation 10 feet structurally higher than in Yenac-3. Once completed, we plan to place this well on production test.
Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este), Colombia
We have successfully drilled our first heavy oil horizontal well, Tatama-1, at the top of the Mirador formation. The well was drilled to a total measured depth of 6,550 feet with a 1,000 foot horizontal section. The well was completed with 96 feet of blank pipe and 889 feet of Meshrite. We have commenced a multi-rate testing program and we expect to have results by the end of January.
Block 126, Peru
In Peru, we are pleased to report that the La Colpa 2x well has encountered a number of porous sands in the Cretaceous and is drilling at 5,623 feet in the Ene formation. The 12 1/4" hole will reach total intermediate depth at 90 feet into the Copacabana formation. Depending upon log results, the Cretaceous sands may be tested for oil potential. We plan to continue drilling to total depth to evaluate the Tarma, Copacabana and Green Sandstone formations.
Production averaged 36,041 barrels of oil per day ("bopd") during the month of December, a five percent increase from November's rate of 34,193 bopd. As a result, our fourth quarter production averaged 35,377 bopd. December production included production additions from our Cobra-2 well initially at 4,000 bopd; the well is currently producing 1,900 bopd at a 64 percent water cut.
At the end of December, we added a water disposal well in the northeast part of the Corcel Block that enabled us to bring on 700 bopd of previously shut-in production. We still have 2,500 bopd off-line awaiting expansion of our water injection capacity. We expect this production will be brought back on-line during the first quarter of 2012 as additional water injection wells are completed.
UPDATED CORPORATE PRESENTATION AND 2012 OUTLOOK
We have updated our corporate presentation, available on our website at www.petrominerales.com. Our corporate presentation contains updated maps that outline our current 2012 drilling program. The highlights from this program include:
- Drilling 19 exploration wells, 16 in Colombia and three in Peru, targeting over 270 million barrels of Undiscovered Petroleum Initially in Place ("UPIIP") on our conventional light oil exploration acreage. Five of the 19 exploration wells target large prospects in the foothills region of the Llanos Basin and on Block 126 in Peru;
- Drilling up to 24 stratigraphic wells on our heavy oil acreage and obtaining production results from at least two horizontal wells to support our longer-term heavy oil strategy; and
- Acquiring over 700 square kilometres of new 3D seismic data on our Llanos Basin Foothills acreage to position our 2013 drilling program with new high impact drilling prospects.
Our 2012 work program is highly flexible and subject to change based on results as our exploration drilling plan is focused on numerous high impact opportunities that with success could result in significant increases to our 2012 program. We plan to update our shareholders throughout 2012 on our progress and future work program as it evolves.
UPCOMING CONFERENCE PARTICIPATION SCHEDULE
Petrominerales will be participating at the following upcoming conferences:
- Macquarie Explorers Conference, London, UK, January 9, 2012
- TD Securities 2012 London Energy Conference, London, UK, January 16-17, 2012
- CIBC World Markets Whistler Institutional Investor Conference, Whistler, British Columbia, Canada, January 18-21, 2012
- Canaccord Genuity South American Energy Conference Bogota, Colombia, January 18-19, 2012
Petrominerales Ltd. is an international oil and gas company operating in Latin America since 2002. Today, Petrominerales is the most active exploration company and the fourth largest oil producer in Colombia. Our high quality land base and multi-year inventory of exploration opportunities provides long-term growth potential for years to come.
Forward‐Looking Statements. Certain information provided in this press release constitutes forward‐looking statements. Specifically, this press release contains forward‐looking statements relating to the Company's future exploration and development activities and the timing for bringing wells on production. The forward‐looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the availability of capital, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, prevailing commodity prices and economic conditions, the availability of labour and services, the ability to transport and market our production, timing of completion of infrastructure and transportation projects, weather and access to drilling locations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability; availability of transportation and offloading capacity, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward‐looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Undiscovered Petroleum Initially-In-Place ("UPIIP"), equivalent to undiscovered resources, are those quantities of petroleum that are estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of UPIIP is referred to as prospective resources, the remainder as unrecoverable. Undiscovered resources carry discovery risk. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. A recovery project cannot be defined for this volume of UPIIP at this time.