TORONTO, April 16, 2012 /PRNewswire/ - PetroMagdalena Energy Corp. (TSXV: PMD), a company focused on oil and gas exploration and production in Colombia, today announced today an update on its ongoing exploration program.
Luciano Biondi, Chief Executive Officer, commented: "We are pleased to announce the continuation of our successful exploratory and development drilling program. The Copa 4 development well at Cubiro has extended the mapped reservoir area with higher formation tops than predicted and with positive tests of the zones identified petrophysically, this could lead to a measurable increase in oil reserves for the Copa Field."
Copa 4 Development Well - Copa Field, Cubiro Block, Llanos Basin:
The Copa 4 development well was spudded on March 31, 2012 and reached TD on April 12 at 6,240 feet MD in the top of the Gachetá Formation. Well logs were run on April 13th. The petrophysical evaluation of the C7, C5 and C3 sandstones, all productive in the Copa field, estimates the well logs to be 15 to 20 feet higher than predicted in the mapping done based on the seismic interpretation. Petrophysics indicate potential hydrocarbon pays of 7 feet in the C7, 17 feet in C5, 13 feet in C5, and 11 feet in C3.
As the Copa 4 development well was drilled to the northwest, it was expected to intersect the predicted oil water contact considerably down dip from the producing Copa-1 well. With positive testing of the hydrocarbon potential in Copa-4, the oil reservoir in the Copa field will be extended to the west with an expected upward revision of the reserves for all three producing reservoir units in the Copa field.
Alondra-1ST Exploration Well - Cubiro Block, Llanos Basin:
The Alondra-1ST exploration well reached TD at 6291 feet MD on April 12, 2012 in the Carbonera C8 Formation and was plugged and abandoned based on LWD logs. The well is in Polygon B of the Cubiro Block, where PetroMagdalena has a 70% working interest.
Cantaclaro - 1X Exploration Well - Carbonera Block, Catatumbo Basin:
At the Cantaclaro-1X exploration well, intermediate 9 5/8 inch casing was set at the top of the La Luna Formation on April 9, 2012. Simultaneous underbalanced drilling and testing of the target La Luna Formation started on April 15, 2012. The plan is to drill 910 feet of a highly deviated reservoir section through the fractured La Luna Formation underbalanced and obtain test rates as the drilling progresses. Final results are expected by the end of April 2012.
PetroMagdalena is a Canadian-based oil and gas exploration and production company, with working interests in 19 properties in five basins in Colombia. Further information can be obtained by visiting our website at www.petromagdalena.com.
All monetary amounts in U.S. dollars unless otherwise stated. This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of PetroMagdalena. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and reserve life of the various oil and gas projects of PetroMagdalena; the estimation of oil and gas reserves; the realization of oil and gas reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of PetroMagdalena and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated. Although PetroMagdalena has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. PetroMagdalena undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Statements concerning oil and gas reserve estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the oil and gas that will be encountered if the property is developed. 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. Estimated values of future net revenue disclosed do not represent fair market value.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
|1P: Proven reserves||G&A: General and Administrative Expenses|
|2P: Proven + Probable reserves||MMCF: Million Cubic Feet|
|3P: Proven + Probable + Possible reserves||MD: Measured Depth|
|ANH: Agencia Nacional de Hidrocarburos||MMBBLS: Million Barrels of Oil|
|API: American Petroleum Institute||MMBTU: Millions British Thermal Unit|
|BOE: Barrels of Oil Equivalent|
|BOFD: Barrels of Fluid Per Day||NPV: Net Present Value|
|BOPD: Barrels of Oil Per Day||PSI: Pounds per Square Inch. The unit of pressure.|
|BOEPD: Barrels of Oil Equivalent Per Day||TD: Total Depth of the well|
|BS&W: Basic Sediments and Water||TVD: True Vertical Depth of the well|
|E&PC: Exploration & Production Contract||TVDSS: True Vertical Depth Sub Sea|
|ESP: Electric Submersible Pump||WI: Working Interest|
|FOB: Freight on Board||WTI: West Texas Intermediate Oil Price Index|
SOURCE PetroMagdalena Energy Corp.