BOGOTA, Colombia, March 30, 2011 /PRNewswire/ -- La Cortez Energy, Inc. ("La Cortez") (OTC: LCTZ) is pleased to provide the following operational update:
Mirto Field - Mirto-2 N Sand Production Test Results
The Mirto-2 well continues to produce at an average rate of 512 bopd gross (102 bopd net to La Cortez before royalties) over the period from January 9 – March 28, with an average Base Sediment and Water (BS&W) of 1.52% over the same period. The average flow rate is slightly below the rate previously reported due to the well being shut-in for a short time during the pressure testing. Total fluids production averaged approximately 530 bopd (see graph below).
As indicated above, a production pressure test was conducted over approximately 72 hours beginning on February 18th. When the well was re-opened to production, pressure was still building at a rate of 2-4 psi/hr. This behavior could imply that the reservoir pressure is very close to the original pressure. However, the final pressure reached during testing cannot be taken as the reservoir static pressure. A longer pressure test period will be required to determine the reservoir static pressure. This initial test result, although it is not conclusive, indicates that the initial reservoir energy (pressure) has been maintained.
Both Emerald Energy PLC, as operator of the block, and La Cortez continue to monitor the production / pressure behavior in order to determine the appropriate actions for both the Mirto-2 well and the Mirto-1 well, which continues to be shut-in as previously reported.
The Maranta block covers an area of 90,459 acres (36,608 hectares) in the foreland of the Putumayo Basin in southwest Colombia. Emerald has an E&P contract with the Agencia Nacional de Hidrocarburos ("ANH"), Colombia's hydrocarbon regulatory agency. Emerald has filed a request with the ANH for the assignment of the 20% working interest in the Maranta block to La Cortez. The ANH granted La Cortez until April 15, 2011 to present its 2010 audited financial statements (which are expected to be finalized this week) along with other financial information required for approval of the assignment of the working interest.
As indicated previously, under the terms of the E&P contract, Emerald and La Cortez are required to relinquish 50% of the area of the Maranta block, as selected by us and Emerald, and we have the option to continue exploration activities in the remaining 50% of the area by committing to additional exploration activity. This is a normal procedure in contracts signed with the ANH. We have chosen to retain the area around the Mirto field to continue with the evaluation process. Emerald has also presented to the ANH our preferred area to be relinquished, along with the work commitments to be conducted in the remaining area of the block. We have suggested having the flexibility of either new seismic acquisition (120 Km of 2D seismic) or the drilling of an exploration well, which has been accepted by the ANH.
TSX Venture Exchange Listing
We are pleased to report that we submitted initial materials in connection with an application to list our common stock on the TSX Venture Exchange on March 2, 2011. The application is subject to Exchange review and listing will be subject to the Company fulfilling all of the listing requirements of the Exchange. We will continue to provide additional information to the Exchange as required. We view the potential listing as part of our strategic plan of action that would allow us to increase our shareholder base, increase market liquidity, and provide access to analyst coverage and new sources of financing.
Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are pleased with the production behavior of the Mirto-2 well, and continue to gather vital information that will allow us to define the appropriate actions in the field. We are pleased to have initiated the application process for listing on the TSX Venture Exchange, and view this listing as an essential step in the growth of the company. We continue to aggressively look for new growth opportunities, while moving forward with the development our existing assets. We are diligently evaluating a number of potential business opportunities, including potential corporate transactions, asset acquisitions, and farm-in opportunities in the country."
About La Cortez Energy, Inc.
La Cortez Energy, Inc. is an early stage oil and gas exploration and production company currently pursuing a business strategy in the energy sector in South America, with an initial focus on identifying oil and gas exploration and production opportunities in Colombia. To that end, the Company has established a branch, La Cortez Energy Colombia, Inc., with offices in Bogota, Colombia, and has signed a Joint Operating Agreement for a 50% working interest in the Putumayo 4 block and a Joint Venture agreement for a 20% working interest in the Maranta block and has acquired the interests of Avante Colombia in the Rio de Oro and the Puerto Barco fields, all in Colombia.
Certain statements in this news release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. There can be no assurance that the Putumayo 4, Maranta and Rio de Oro and Puerto Barco projects will be successfully developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company, including, but not limited to, the Company's ability to identify corporate acquisition and/or joint venture opportunities in the energy sector in Colombia, Peru and Brazil and, more generally, in Latin America, and to establish the technical and managerial infrastructure, and to raise the required capital, to take advantage of, and successfully participate in such opportunities, future economic conditions, political stability and energy prices. There can also be no assurance that the common shares will be accepted for listing on the TSX Venture Exchange. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE La Cortez Energy, Inc.