Press release from Marketwire
Petrominerales and Veraz Announce Operational Update on Block 126 in Peru
Monday, February 27, 2012
Petrominerales and Veraz Announce Operational Update on Block 126 in Peru06:10 EST Monday, February 27, 2012CALGARY, ALBERTA--(Marketwire - Feb. 27, 2012) - Petrominerales Ltd. ("Petrominerales") (TSX:PMG)(BVC:PMGC) and Veraz Petroleum Ltd. ("Veraz") (TSX VENTURE:VRZ), joint venture partners on Block 126 in Peru, are pleased to provide an operational update on their drilling activity on Block 126.We have drilled our first exploration well, La Colpa 2X, to an initial depth of 7,870 feet. As we were drilling through the Copacabana formation, at depths ranging from 5,695 to 7,225 feet, we experienced indications of oil and significant drilling mud losses. After drilling through the entire Copacabana section to a depth of 7,870 feet, we suspended drilling operations to run logs and interpret well information obtained to-date. We ran open-hole logs, and to assist our petrophysical interpretation we used an MDT tool (modular formation dynamics tester tool) to obtain reservoir pressure measurements along with reservoir fluid samples. The primary objective was to validate the potential net hydrocarbon pay identified on logs. Based on our analysis, we estimate an initial 72 feet of net potential oil pay in three intervals of the Copacabana reservoir. We subsequently drilled the well to targeted depth of 8,392 feet. We plan to run open-hole logs over the remaining part of the hole and then case the well for production testing. We expect to have testing results by the end of April, subject to favorable weather conditions. Our initial drilling plan for La Colpa 2X had identified up to eight potential hydrocarbon formations. The following is a summary of the formations we have encountered to date: FormationResult from original discovery well La Colpa 1X (1)Initial result from La Colpa 2XNoteAgua CalienteLogs indicate 26 feet of potential net oil pay; swab tested 44 barrels of 22 degree API oilReservoir shaled out; Top Agua Caliente 12 feet structurally lower than La Colpa 1XRayaLogs indicate 15 feet of potential net oil pay; formation not testedPenetrated reservoir with low permeability and appears wet2Cushabatay / EneCopacabanaLogs indicate 98 feet of potential net oil pay; DST(3) recovered 8 barrels of 26 degree API oilFound estimated 72 feet of potential net oil pay4TarmaDST(3) recovered 8 barrels of 30 degree API oilAcquiring logsAmboLogs indicate 24 feet of net oil pay; formation not testedAcquiring logsGreen SandstoneLogs indicate 10 feet of net oil pay; DST(3) recovered 6 barrels of 32 degree API oilAcquiring logs Notes: The original La Colpa 1X well was drilled in 1989 by a prior land holder. Test results are not necessarily indicative of long-term performance or of ultimate recovery. Potential exists for this reservoir to contain hydrocarbons elsewhere on the Block. DST means Drill Stem Test, an open-hole test to obtain reservoir pressure and short-term flow test data. To be production tested after the well is completed. Following the completion and production testing of the La Colpa 2X well, we plan to move our equipment and drill our Sheshea-1X prospect on the Block. The Sheshea prospect is an independent prospect from La Colpa and we are targeting multiple reservoir formations in the well.About PetromineralesPetrominerales Ltd.is an international oil and gas company operating in Latin America since 2002. Today, Petrominerales is the most active exploration company and the fourth largest oil producer in Colombia. Our high quality land base and multi-year inventory of exploration opportunities provides long-term growth potential for years to come.About VerazVeraz Petroleum Ltd.is a junior South American focused oil and gas exploration company based in Calgary, Alberta. Veraz has a 20% working interest in Block 126, which is located in the Ucayali basin of east central Peru. For further information regarding Block 126, including the risks and the level of uncertainty associated with the recovery of the resources associated with this Block, see Veraz's Annual Information Form for the year ended December 31, 2010 dated April 28, 2011, which is filed on Veraz's SEDAR profile at www.sedar.com.Forward‐Looking Statements. This press release contains forward-looking statements. More particularly, it contains forward-looking statements concerning potential exploration and development activities on the La Colpa 2X well and the Sheshea 1X well and our initial estimate of the potential net oil pay in the Copacabana formation at the La Colpa 2X well. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the availability of capital, the success of future drilling, completion, testing, recompletion and development activities. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, availability of equipment and personnel, uncertainty surrounding timing for drilling, completion and testing activities resulting from weather and other factors; changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and exchange rate fluctuations and general economic conditions. Certain of these risks are set out in more detail in our respective Annual Information Forms which have been filed on SEDAR and can be accessed at www.sedar.com. There is no representation by Petrominerales or Veraz 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, neither Petrominerales nor Veraz assumes any 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: Corey C. RuttanPetrominerales Ltd.President and Chief Executive Officer403.920.0124 or 011.571.629.2701ORJack F. ScottPetrominerales Ltd.Chief Operating Officer403.920.0124 or 011.571.629.2701ORKelly D. SledzPetrominerales Ltd.Chief Financial Officer403.920.0124 or 011.571.629.2701www.petrominerales.comORGerardjan ("Oppe") CosijnVeraz Petroleum Ltd.President and Chief Executive Officer(403) 781-7930ORColin ChristieVeraz Petroleum Ltd.Vice President, Finance and Chief Financial Officer(403) 781-7931www.verazpetroleum.comNEITHER THE 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 RELEASE.