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.
Glossary
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.