Santa Cruz-1X Well
Suspended
TORONTO,
April 24, 2012 /PRNewswire/ -
PetroMagdalena Energy Corp. (TSXV: PMD) has finished drilling and
testing of the Santa Cruz-1X well
located in the Santa Cruz Block in the Catatumbo Basin. Based
on the results of the testing program, the well has been suspended
to allow for further geological studies and a final conclusion on
the prospectivity of the area. PetroMagdalena has a
70% working interest in the Santa Cruz Block, the Santa Cruz-1X well is the first exploration
well on the block.
The testing program consisted of three tests in
the Barco, the first with water and traces of oil, the second two
wet, one in the Cuervos with no inflow and two tests in the
Mirador, both tests resulting in a natural flow of water.
The program tested the following intervals:
Santa Cruz-1X |
|
Test |
Formation |
Interval |
|
|
|
DST 1 |
Barco |
11, 263-276 |
|
|
|
DST 2 |
Barco |
11, 083-103 |
|
|
|
DST 3 |
Barco |
11, 017-027 |
|
|
11, 040-066 |
|
|
|
DST 4 |
Los Cuervos |
10, 714-724 |
|
|
|
DST 5 |
Mirador |
9, 726-746 |
|
|
9, 842-862 |
|
|
|
DST 6 |
Mirador |
9, 734-754 |
|
|
9, 494-524 |
|
|
9, 470-480 |
|
|
|
Blockade Affects Cubiro
On the morning of April 19, 2012,
small groups of people began illegally blocking roads on the Cubiro
Block, in the municipalities of Trinidad and San Luis de Palenque, which has
led to a lack of public order in the area. These persons are
not employees or contractors of PetroMagdalena or associated in any
way with the company. The blockades and the actions of those
involved have resulted in a lack of public order which impacts
PetroMagdalena's operations in the area.
As a result of these measures, a temporary production halt has
been initiated on certain wells located in the Cubiro Block.
Management estimates that approximately 3,700 barrels of oil per
day are currently shut-in. PetroMagdalena has evacuated all
non-essential operational personnel from the Cubiro Block to ensure
their safety. The Company's priority is to maintain the well-being
of our personnel and contractors and to limit any potential damages
and we will continue to take all necessary measures to do so.
PetroMagdalena's social responsibility practices and policies
include a full time Social Manager and permanent social
representatives in the area of operations. PetroMagdalena is
committed to open and honest dialogue with stakeholders and members
of their local communities. The Company will continue to work
with the National Government authorities for restoring law and
order in the area and will provide all necessary support
requested.
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.
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.
SOURCE PetroMagdalena Energy Corp.