TORONTO, Feb. 20, 2013 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) announced today the discovery of natural gas and condensate in the Manamo-1X exploration well drilled in the Guama Block in the Lower Magdalena basin, onshore northern Colombia. The Company has 100% working interest in the block and is the operator.
Ronald Pantin, Chief Executive Officer of the Company, commented: "This is an important discovery for Pacific Rubiales, as it demonstrates the upside potential of both the Guama block and the Lower Magdalena basin where the Company has a large exploration acreage position. It also validates the geophysical seismic model being used to successfully identify these condensate rich gas accumulations."
The Manamo-1X well was drilled following two previous exploration discoveries in the block, the Pedernalito-1X well drilled in 2010 and the Cotorra-1X well drilled in early 2012. The well targeted the Porquero Medio C and D sands and silts of Miocene age, a low-permeability play successfully tested by the earlier exploration wells. In addition to encountering low-permeability sands, the well also resulted in the discovery of a new sand reservoir at a stratigraphic level in the Porquero Medio D zone, which is different and independent of the sand intervals tested in the Cotorra-1X well.
The Manamo-1X well was drilled to a total depth of 7,600 feet. The petrophysical evaluation indicates a total of 251 feet of net pay averaging 18% porosity across a gross interval exceeding 400 feet. The well was tested across a 91 foot perforated zone in the new prospective sand. This sand does not require hydraulic frac stimulation, leaving additional prospective pay zones untested for further evaluation, including a 23 foot gas sand identified in the shallower Porquero. The Manamo-1X well reached a maximum gas flow rate of 4.9 MMcf/d and 296 bbl/d 54°API condensate through a 16/64" choke in a three-stage isochronal test, and an average rate of 2.8 MMcf/d gas and 160 bbl/d condensate through a 12/64" choke at 3,720 psi well head pressure, on an extended flow test. The well has now been shut-in for a four day pressure buildup.
Immediately following the current testing program, the Company plans to drill the Capure-1X exploration well approximately 2 km west of Pedernalito-1X, aiming to extend the Porquero Medio play to the northeast. The Capure-1X well will complete the commitment for the final exploration phase on the Guama block. A program of extended flow tests is planned for the wells drilled on the block, and is expected to be commenced later in the year. Data from the extended flow tests will be used to determine the long-term flow characteristics of the Miocene reservoir sands, as well as the potential resource contribution from surrounding shales.
Pacific Rubiales, a Canadian company and producer of natural gas and crude oil, owns 100% of Meta Petroleum Corp., which operates the Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and 100% of Pacific Stratus Energy Colombia Corp., which operates the La Creciente natural gas field in the northwestern area of Colombia. Pacific Rubiales has also acquired 100% of PetroMagdalena Energy Corp., which owns light oil assets in Colombia, and 100% of C&C Energia Ltd., which owns light oil assets in the Llanos Basin. In addition, the Company has a diversified portfolio of assets beyond Colombia, which includes producing and exploration assets in Peru, Guatemala, Brazil, Guyana and Papua New Guinea.
The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB, respectively.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the Company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia, Peru, Guatemala, Brazil, Papua New Guinea or Guyana; changes to regulations affecting the Company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 14, 2012 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
In addition, reported production levels may not be reflective of sustainable production rates and future production rates may differ materially from the production rates reflected in this press release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons.
Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The estimated values disclosed in this news release do not represent fair market value. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
This news release was prepared in the English language and subsequently translated into Spanish and Portuguese. In the case of any differences between the English version and its translated counterparts, the English document should be treated as the governing version.
|Bcf||Billion cubic feet.|
|Bcfe||Billion cubic feet of natural gas equivalent.|
|bbl||Barrel of oil.|
|bbl/d||Barrel of oil per day.|
|boe||Barrel of oil equivalent. Boe's may be misleading, particularly if used in isolation. The Colombian standard is a boe conversion ratio of 5.7 Mcf:1 bbl and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.|
|boe/d||Barrel of oil equivalent per day.|
|Mboe||Thousand barrels of oil equivalent.|
|MMboe||Million barrels of oil equivalent.|
|Mcf||Thousand cubic feet.|
|WTI||West Texas Intermediate Crude Oil.|
SOURCE Pacific Rubiales Energy Corp.