Press release from CNW Group
Sintana Energy Provides Update For Dorados-1X Well In Colombia And Exploration Program For Bayovar Block In Peru
Monday, August 13, 2012
Sintana Energy Provides Update For Dorados-1X Well In Colombia And Exploration Program For Bayovar Block In Peru13:24 EDT Monday, August 13, 2012TORONTO, Aug. 13, 2012 /CNW/ - Sintana Energy Inc. (TSX-V: SNN) ("Sintana" or the "Company") announces that it has been notified by the Operator of the Talora Block that the Dorados-1X exploration well commenced drilling operations on July 31, 2012.The Company previously announced an agreement with Petrodorado Energy Ltd. (TSX-V: PDQ) to farm-in for an undivided 30% interest in the 58,570 acre Talora Block located in Colombia's prolific Magdalena Basin. The Talora Block, which is operated by Petrodorado, is immediately adjacent to the region's main oil and gas pipelines and only 60 kilometers west of the capital city of Bogota. Given this close proximity to infrastructure, conversion of a discovery to a commercial well is expected to be a relatively quick process.The well, which is targeting the Cretaceous Caballos and Tetuan formations, is presently drilling ahead at a depth of 2,500 feet to a planned total depth of 9,500 feet. The Company will earn a 30% private participation interest in the well by paying 60% of the well costs, subject to a cap of US$6.5 Million (gross). Costs above the cap are to be paid proportionally by each partner based on their respective participation interests.In Peru, planning has commenced for a seismic program on Bayovar Block XXVII (Sintana – 25%), located in the Sechura Basin. Faulkner Exploration, as operator, previously drilled the SC-4X seismic control well. Open hole log data from the well is being incorporated into the design of the seismic shoot. Post processing and analysis, optimum locations for subsequent wells will be selected based on this seismic. The SC 4X control well reached a TD of 5,276 feet and encountered the target reservoirs 500 feet lower than anticipated. Open hole log evaluations identified a continuous column of rich gas shows from the 1,496 feet of gross Paleozoic section penetrated, starting at 3,780 feet. Imagery logs depict a high density fracture system with a network of fracture intersections. The Operator reported that during testing the highly fractured target interval collapsed which prevented completion of the well. The objective of gathering open hole log data on the stratigraphic section on the block was achieved and indications of hydrocarbons at this location are considered a significant bonus. Doug Manner, CEO of Sintana commented, "We are excited about commencing the Talora exploration drilling program and look forward to completing the seismic program at Bayovar. We anticipate having drilling results for the Dorados-1X well in September."ABOUT SINTANA ENERGYThe Company is primarily engaged in petroleum and natural gas exploration and development activities in Colombia and Peru. The Company's exploration strategy is to acquire, explore, develop and produce superior quality assets with significant reserve potential. The Company currently holds a 25% interest in the 175,000 acre Bayovar Block XXVII in the Sechura Basin, Peru. The Company's private participation interests in Colombia include 30% in 58,570 acres in the Talora Block and 30% in 272,021 acres in the COR-39 & COR-11 Blocks in the Upper Magdalena Basin. In the Middle Magdalena Basin, private participation interests are 100% in the 43,158 acre VMM-37 Block and 25% (carried) in the 154,909 acre VMM-4 and 59,522 acre VMM-15 Blocks. In the Llanos Basin, the company has a carried 25% private participation interest in the 11,624 acre LLA-18 Block. The Company continues to evaluate a portfolio of exploration opportunities in South America.On behalf of Sintana Energy"Doug Manner" Chief Executive OfficerFor additional information or to receive timely updates about Sintana's South America projects and recent corporate activities please visit the Company's website at www.sintanaenergy.com or email email@example.comCorporate Contact:Corporate Contact:Douglas MannerSean AustinChief Executive OfficerVice PresidentTel: 832.279.4913Tel: 713.825.9591Forward-Looking StatementThis news release includes forward-looking statements related to the expected occurrences in relation to the properties identified. A multitude of factors can cause actual events to differ significantly from any anticipated development and although the Company believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized. These forward looking statements are based on assumptions that the Company has made concerning the oil and gas industry in South America, that all applicable regulatory approvals will be obtained, the reliability of available data regarding the properties and increasing demand for oil and gas. Risk factors which may cause actual results to differ from those anticipated in such forward looking statements include but are limited to, the uncertainty of conducting operations under a foreign regime, the uncertainty of obtaining all applicable regulatory approvals, the availability of labour and equipment, the fluctuating prices of oil and natural gas, the availability of financing and the Company's dependence on Sintana's management personnel and other participants in the property areas. Neither the Company nor any of its subsidiaries nor any of its officers or employees guarantee that the assumptions underlying such forward-looking statements are free from errors, nor do any of the foregoing accept any responsibility for the future accuracy of any of the opinions expressed in this document or the actual occurrence of forecasted developments. Although the Company believes that the expectations represented by the forward-looking statements contained herein are reasonable, undue reliance should not be placed on the forward-looking statements as there can be no assurance that such expectations will be realized. The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. This press release does not constitute an offer to sell or a solicitation to buy any of the securities of Sintana Energy Inc. in the United States.Neither 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.SOURCE: Sintana Energy Inc.