ArPetrol Ltd. announces a new addition to its management team and provides an operational update
15 Mar, 2012, 08:00 ET
CALGARY, March 15, 2012 /PRNewswire/ - ArPetrol Ltd. ("ArPetrol" or the "Company") (TSX-V: RPT) is pleased to announce that Pedro Americo Sanchez will be joining our Buenos Aires based team as our in-country manager effective April 2nd, 2012. Pedro joins us following an extensive career with Repsol-YPF, Astra and Occidental in Argentina, Peru and Bolivia. Most recently Pedro has been the Director of Energy for the Provincial government of Mendoza. Pedro will be replacing Troy Wagner, who has been resident in Buenos Aires for ArPetrol since 2007 and is leaving the Company for personal reasons.
Tim Thomas, ArPetrol President and CEO commented, "We are delighted to be able to welcome Pedro into the ArPetrol team at a very exciting time in the Company's growth. With the start-up of the Faro Virgenes gas field long reach drilling program and the added cash flow expected to be generated by impending production increases, the Company will be well-positioned to take advantage of the broad range of opportunities that exist in Argentina. I would like to thank Troy Wagner for all he has accomplished in Argentina and for assembling a very high quality team to execute our business plan."
ArPetrol has initiated the mobilization for a June, 2012 spud of the first long reach well in the Faro Virgenes field. The first well will take 45-50 days to drill and is targeted to have initial production rates in excess of 6 MMscf/d. Plans are in place to drill two wells, depending on the results from the first well. Production from these wells would be immediately tied into ArPetrol's 100% owned gas plant, which is in close proximity.
Other exploration opportunities on the Faro Virgenes concession may be pursued under a subsequent drilling program that will be evaluated after cash flow begins to be generated from the long reach drilling program.
ArPetrol would also like to provide an update to the 2011 and early 2012 drilling program that was recently completed. The program was conducted in two blocks, Blanco Los Olivios Orientale and Catriel Viejo Sur. These blocks were acquired as part of the asset package when ArPetrol purchased Geodyne Energy S.A. and the Faro Virgenes asset. Through completion of this program, ArPetrol will have fulfilled the work obligations for those assets, allowing ArPetrol to now focus on its key Faro Virgenes asset.
In the Blanco Los Olivios block, in which ArPetrol holds a 20% working interest, two wells were drilled to test shallow Tertiary targets. Although hydrocarbons were encountered, they were deemed to be sub commercial in size, and both wells have been abandoned. At Catriel Viejo Sur, ArPetrol elected to increase its working interest from 20% to 50%, and a well was recently drilled to test a shallow Tertiary target as well as evaluate the unconventional potential in the Vaca Muerta shales. The Tertiary Centenario was found to be wet at this location and, although oil was found in the Cretaceous Tordillo formation, the reservoir was deemed to be too tight to be commercial. The core and wireline logs from the Vaca Muerta shales are still being evaluated.
Tim Thomas, President and CEO of ArPetrol said, "We are pleased with the progress made to date with respect to our strategy. ArPetrol has met all of the commitments in the Nequen basin program and has demonstrated our ability to execute a multi-well drilling program in Argentina. We anticipate that cash flow from our 2012 long reach drilling program at Faro Virgenes will position us for further growth."
The Company's unexpired mining leases from its predecessor, RPT Resources Ltd., have been transferred to a third party in exchange for a net smelter royalty.
ArPetrol continues to evaluate a number of potential transactions which would be complementary to the current portfolio of assets.
About ArPetrol Ltd.
The Company is a Calgary-based publicly traded company currently engaged in oil and natural gas exploration, development and production and third-party natural gas processing in Argentina where it also owns and operates a gas processing facility with capacity of 85 million cubic feet (MMcf) per day.
This news release contains certain forward-looking statements relating, but not limited, to operational information, drilling plans and the timing associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "target", "estimate", "expect", "potential", "could", "should", or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities not to place undue reliance on forward-looking information as, by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company.
Forward-looking information is based on management's current expectations and assumptions regarding, among other things, plans for and results of future transactions, future drilling activity and production, availability of future capital, future economic conditions, continued political stability in the areas in which the Company is operating, and the Company's continued ability to obtain and retain qualified staff and equipment in a timely and cost-efficient manner. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.
Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to risks associated with the oil and natural gas industry (e.g., operational risks in exploration and drilling; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; the uncertainty of estimates and projections in relation to costs and expenses; and health, safety and environmental risks), weather delays and natural disasters, processing interruptions and natural declines, disruptions at third party facilities, union activities, the risk of commodity price and foreign exchange rate fluctuations, the risk of changes in legislation and fiscal regimes, the uncertainty associated with negotiating with third parties (including governments) in countries other than Canada and other risks associated with international activity.
The forward-looking information included herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information included herein is made as of the date hereof and the Company assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.
Additional information relating to the Company is also available on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ArPetrol Ltd.
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