TORONTO, Oct. 21 /PRNewswire/ -- Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today an update on the Topoyaco-2 well, located in the Topoyaco block, in the foothills of the Putumayo Basin, where the Company has a 50% working interest. The well was drilled to a total depth of 8,700 feet measured depth ("MD") or 7,231 feet true vertical depth ("TVD") reaching the lower part of the Villeta formation ("C" limestone). This well was drilled simultaneously with the Topoyaco-1 well, as part of the original work commitment with the Agencia Nacional de Hidrocarburos ("ANH"). The operator for this block is Alange Energy Corp., which also holds a 50% working interest.
Ronald Pantin, CEO of the Company commented: "The information provided by this well confirms the potential of the Cretaceous section in this area and represents a firm step to making the Putumayo area a focus of future growth. The Company is looking forward to successfully testing the well in the following weeks."
According to preliminary petrophysical analysis of the well logs, the well found 114 feet of net oil sands with average porosities of 15% and average oil saturations of 73%. The logs and well cuttings also indicated a total of 125 feet of oil saturated carbonates in the Villeta formation. Most of these sections showed moderate to good oil and gas shows during drilling, with pale to strong yellow fluorescence and slow to rapid white solvent cut.
The Topoyaco-2 well was spudded on August 8, 2010, and was drilled directionally with a WNW orientation, on a structural closure (closure C) immediately west of closure B where the Topoyaco-1 is currently being drilled. Both structures are separated by a southwest-northeast striking lateral ramp. Due to hole restrictions, the final portion of the well was logged in two sections, initially from 7,690 feet MD to 7,119 feet MD, where the 7" casing shoe is located, and then from total depth to 7,690 feet MD. The well found the top of the Villeta formation at 7,346 feet MD, finding several prospective clastic sections: Sand Upper-N at 7,346 feet MD, Sand N at 7,532 feet MD, the calcareous Sand M1/M2 at 7,610 feet MD, and the basal "T" sands at 8,420 feet MD.
The well is targeting 19.26 MMbbl (best estimate) of prospective resources, as certified by Petrotech Engineering on April 30, 2010 for structure C. The well results will allow the Company to improve the structural interpretation of this area and thus the prospective resources estimation.
The immediate plan for the well is to set a production liner at the base of the Villeta formation and evaluate the prospective intervals, with complete production tests.
Pacific Rubiales, a Canadian-based Company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol S.A., the Colombian national oil Company. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has a current net production of approximately at 62,000 barrels of oil equivalent per day, after royalties, with working interests in 40 blocks in Colombia, Guatemala and Peru.
Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 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.
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 or Peru; 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 9, 2010 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.
For further information: Mr. Ronald Pantin, Chief Executive Officer and Director; Mr. Jose Francisco Arata, President and Director, (416) 362 7735; Ms. Belinda Labatte, (647) 428 7035
SOURCE Pacific Rubiales Energy Corp.