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Press release from Marketwire

Petrominerales Yenac-2 Well Produces Over 2,900 bopd

Tuesday, December 07, 2010

Petrominerales Yenac-2 Well Produces Over 2,900 bopd00:53 EST Tuesday, December 07, 2010BOGOTÁ, COLOMBIA--(Marketwire - Dec. 7, 2010) - Petrominerales Ltd. ("Petrominerales") (TSX:PMG), a 65% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), is pleased to announce the successful test of our Yenac-2 well at a rate of 2,936 barrels of oil per day ("bopd"). Central Llanos Blocks (Casimena, Castor, Casanare Este, Mapache), ColombiaYenac-2 is the second well drilled on our Yenac discovery made in April 2010 on our Casimena Block. The Mirador formation in Yenac-2 was penetrated 25 feet higher than that encountered in Yenac-1 and log analysis indicated 48 feet of potential net pay in the well as compared to 42 feet of potential net pay in Yenac-1. We completed testing two of four planned intervals in the Mirador formation. The first Upper Mirador interval resulted in the production of 80 bopd of heavy 10 degree API oil. A second Upper Mirador interval has production tested at 2,936 bopd of 17 degree API oil with a four percent water-cut. Based on these results, we have decided to defer testing the remaining Mirador sands and the well has been placed on an extended production test. The remaining Mirador sands in Yenac-2 will be tested at a later date and in our future Yenac wells. Our Central Llanos rig has now completed drilling Mantis-1, encountering the top Mirador sand at the same structural elevation as encountered in Yenac-1. Mantis-1 is testing a different structure 800 metres northeast of Yenac-1. Well logs indicate 90 feet of potential net oil pay in the Mirador and Gachete formations. We plan to case the well as a potential oil producer and conduct a muti-zone testing program. Following this well, we plan to drill the Yenac-3 well before we recommence drilling our Mapache multi-well exploration program.We have currently identified up to four additional Yenac drilling locations and, with a successful test at Mantis, a further two follow-up wells.Corcel & Guatiquia Blocks, Llanos Basin, ColombiaWe completed drilling our Corcel-E2 well to a measured depth of 13,180 feet on November 27, 2010. Well logs indicate a small amount of hydrocarbon pay and high water saturation in the wellbore, likely due to cumulative production from the Corcel-E1 well. As a result, we are casing the well as a water injector.We temporarily have three drilling rigs working in the Corcel/Guatiquia area. We began drilling the Cardenal-1 prospect on the Corcel Block today. The second rig is currently drilling the Yatay-1 exploration well on the Guatiquia Block, and we expect to have results from this well by year-end. The third rig will drill the Celeste-1 prospect from the Corcel-E pad. Celeste-1 is targeting a recently mapped structural closure that is accessible from the Corcel E drilling pad and if successful, would allow easy tie-in to the Corcel production facilities.Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este), Llanos Basin, ColombiaThe next well in our Rio Ariari exploration program, Borugo-1, began drilling operations on December 2, 2010. We expect to have well results in early January. At Mochelo-1, we have initiated completion operations on the planned multi-interval testing program. As previously announced on November 29, 2010, Mochelo-1 well logs indicated 69 feet of potential net pay in the Mirador formation. The nine-well Rio Ariari exploration drilling program is designed to target new exploration prospects and play-types that could result in the identification of multiple large resource opportunities. We expect to run this program continuously for the remainder of 2010 and into 2011.Petrominerales Ltd. is a Latin America-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 2.1 million acres in the Llanos and Putumayo Basins and five exploration blocks in Peru covering a total of 9.4 million gross (5.4 million net) acres in the Ucayali and Titicaca Basins. Petrominerales is 65% owned by Petrobank Energy and Resources Ltd. (TSX:PBG).Forward-Looking Statements Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of capital projects and production results. The forward looking information is based on key expectations and assumptions made by Petrominerales, including assumptions concerning the success of future drilling activities, the performance of existing wells, prevailing commodity prices, availability of labour and services, receipt of required permits and regulatory approvals and performance of expected activities by industry partners. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. A discussion of those risks and uncertainties can be found in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond our control. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: John D. WrightPetrominerales Ltd.Strategic Adviser and Chairman of the Board403.750.4400 or 011.571.629.2701ORCorey C. RuttanPetrominerales Ltd.President and Chief Executive Officer403.750.4400 or 011.571.629.2701ORJack F. ScottPetrominerales Ltd.Chief Operating Officer403.750.4400 or 011.571.629.2701ORKelly D. SledzPetrominerales Ltd.Chief Financial Officer403.750.4400 or 011.571.629.2701ir@petrominerales.comwww.petrominerales.com