CALGARY, ALBERTA--(Marketwire - April 26, 2012) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG) (BVC:PMGC) is pleased to provide the following exploration and operations update.
Foothills Blocks (Block 25, 31, 59 and 15), Deep Llanos Basin, Colombia
At Bromelia on Block 25, we have reached our third intermediate casing point of 18,015 feet measured depth after penetrating the Carbonera, Mirador, Guadalupe and Barco formations. The well penetrated an initial 204 feet of net potential reservoir. The log data is considered to be poor as the density tool only functioned intermittently during the logging operation. Net potential pay is initially estimated to be 40 feet and the well was successfully cased to 18,015 feet. Hydrocarbon shows either described from geological description or seen in mud gas were encountered in the Carbonera C8, Mirador, Guadalupe and Barco formations. Following drilling of the final section of the well, expected to be up to an additional 800 feet and reached in mid-May, we will acquire logs and initiate a comprehensive testing program.
We believe that the thickness of reservoir quality intervals encountered at these drilling depths is very encouraging for the prospectivity of the Block. We also have initiated a 187 square kilometre 3D seismic acquisition program on the northern portion of the Block. The 3D seismic, combined with our well results, will help to significantly improve our geological and geophysical understanding of the area.
Following Bromelia, we plan to commence drilling our second exploration prospect on Block 25, Canatua-1, in June.
Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia
On our Corcel Block, we began drilling our Chilaco-1 prospect January 29th, and reached total depth of 12,360 feet on March 18th. Well logs indicate 24 feet of potential net oil pay in the Lower Sand Formations. We cased the well and placed it on production at 437 bopd with a 45 percent water cut.
Following Chilaco-1, we began drilling our next prospect, Guala-1 on March 31st. In addition, as previously disclosed, our Tente-1 exploration well has been drilled and we are planning to commence a three interval testing program within the next week.
Central Llanos Basin (Casimena, Castor, Casanare Este, Mapache Blocks), Colombia
On our Mapache Block, we previously announced our Tucuso discovery on March 5th. We were successful in isolating production to the upper Ubaque sand to optimize oil and minimize water production. The well averaged over 1,000 bopd for the last 15 days of March.
Following Yenac-5, we drilled our Yenac-4 appraisal well. Well logs indicate 55 feet of potential net pay, 36 feet in the Upper Mirador formation and 19 feet in the Lower Mirador formation. We plan to place Yenac-4 on production by the end of April.
Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este), Colombia
We obtained initial production log data on our Tatama-1 horizontal well on our Rio Ari Ari Block. Based on our analysis, we believe there is fluid inflow coming from the entire length of the horizontal section. We plan to place the well on a long-term production test while running a coiled tubing string for down-hole diluent injection to assist in producing the well.
As previously disclosed on March 5th, to-date in 2012 we have drilled four stratigraphic wells (ES-22A, ES-36, ES-42, and ES-42A) on our Rio Ariari block. The drilling rig is currently moving to our Dara-1 prospect on our Chiguiro Oeste Block, and the stratigraphic rig is moving to drill our next well, ES-45. Following completion of our current nineteen-well stratigraphic drilling program, we plan to select a location for our next conventional horizontal heavy oil well.
Block 126, Peru
The testing of the La Colpa 2X well has been completed and no hydrocarbons were encountered. Log analysis and sample evaluation had suggested potential for hydrocarbons in several zones; namely in the Tarma sandstone and in several porous intervals in the Copacabana carbonates. The Tarma was completed first; little fluid was produced and no oil recovered. Pressure information indicated the permeabilities were too low for the interval to be considered economic. The Tarma was suspended and completions were initiated on several porous intervals in the Copacabana. Despite encountering oil and gas shows in the samples while drilling, it appears the entire Copacabana section has been flushed with fresh water. Unusually low salinities in the formation waters complicated log analysis as fresh water generates a similar high resistivity log signature to that of hydrocarbons. Although excellent reservoirs were encountered, with flow rates of up to almost 4,000 barrels of fluid per day, only water was produced.
Following La Colpa 2X, we plan to move equipment to drill our Sheshea-1X prospect on the Block. The Sheshea prospect is an independent prospect from La Colpa and we are targeting multiple reservoir formations in the well. We expect to begin drilling operations from this well in July, subject to weather conditions.
For the first quarter, production averaged 34,047 bopd. In March, production averaged 35,187 bopd, a nine percent increase over February.
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.