Press release from CNW Group
Petroamerica Tests 3,600 BOPD from its Las Maracas-11 Well and Provides an Operations Update for Activities in Colombia
Wednesday, July 31, 2013
Petroamerica Tests 3,600 BOPD from its Las Maracas-11 Well and Provides an Operations Update for Activities in Colombia16:00 EDT Wednesday, July 31, 2013
CALGARY, July 31, 2013 /CNW/ - Petroamerica Oil Corp. (TSXV: PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to announce the results from its Las Maracas-11 development well which tested under natural flow, light 37o API oil at an average rate of approximately 3,600 barrels of oil per day ("bopd") from the Mirador Formation.
The Las Maracas-11 development well was specifically targeting attic oil in the Mirador reservoir in a high structural position, but also intersected the Gacheta and Une reservoirs lower in the structure. The well encountered 48 feet of net pay, 38 feet of which are in the Mirador Formation, and produced on test under natural flow conditions light oil (37o API) from a 16-foot perforated interval in the Mirador Formation. The total duration of the test was 17 hours and the average oil rate through a 32/64 inch restricted choke over the last 7-hour period was 3,612 bopd with a wellhead pressure of 550 psi. The maximum oil rate was more than 3,700 bopd and the water cut at the end of the test was less than 0.3%. Total oil recovered during the test was 1,761 barrels with 11 barrels water. Pressure build-up recorders installed in the bottom of the well confirmed no pressure decline during the test and a producing drawdown of only 2.2% at 3,600 bopd confirmed the exceptional quality of the Mirador reservoir. The well is currently shut-in for a pressure build-up, following which it will be placed on production. This is the third well test in the Mirador Formation and the excellent test result confirms the high potential of this reservoir.
Q2 2013 Corporate Production: The Company's average working interest production for the second quarter was 5,046 bopd, compared to a Q1 average of 4,375 bopd. The Company has seen consistent month-on-month average production increases throughout the last quarter, from 4,575 bopd in April, to 5,108 bopd in May and 5,454 bopd for the month of June. Average production for the month of July (up to July 24), was 5,600 bopd, not including production from Las Maracas-11.
Las Maracas Field (Los Ocarros Block, 50% WI): The Las Maracas field gross production for the second quarter of 2013 averaged 9,706 bopd, and we have seen a steady increase in average daily production levels of 8,712 bopd, 9,810 bopd and 10,596 bopd for the months of April, May and June, respectively. Following the completion of Las Maracas-11, the Tuscany 109 rig will skid to drill Las Maracas-10, which is targeting the Gacheta formation in an attic position. Up to 3 additional development wells and one additional appraisal well (Las Maracas Sur-1) are planned for the remainder of 2013.
The La Guira-1 exploration well targeting an exploration prospect to the south of the Las Maracas Field is expected to spud early in the fourth quarter of 2013.
Balay Field (Balay Block, 15% WI): Average gross production for Q2 2013 was 1,287 bopd from 2 wells. The operator plans to work over the currently shut-in Balay-1 well and place on production, and is monitoring the production performance of Balay-4 before deciding whether or not to drill Balay-5.
La Casona Appraisal (El Eden Block, 40%WI): The long-term test production facility at La Casona is more than 85% complete, and production start up is expected before the end of September.
The La Casona-2 appraisal well was side-tracked for operational issues on July 5, before reaching any reservoir objectives, and the sidetrack well is currently drilling in the Carbonera C5 Formation at a depth of 13,723 feet (measured depth). This well is expected to reach its target depth by mid-August and following completion and testing, the Tuscany 119 rig will mobilize to drill the Rumi-1 exploration well also located on the El Eden Block.
Curiara-1 Discovery (El Porton Block, 25% WI, Curiara discovery; 100% WI, exploration area): The Curiara-1 long-term test is expected to start-up early in Q1 2014, and run for a period of six months.
Additionally, partners elected not to participate in the exploration area of the El Porton Block in the next exploration phase (5). Petroamerica still sees significant exploration potential on this block and will continue into phase 5 assuming 100% of the commitment and working interest. Petroamerica is required to drill one exploration well to be spud before end January 2014, and a prospect called Crypto-1 has been identified on re-processed 3D seismic. The partners have retained their respective working interests in the Curiara-1 discovery evaluation area only.
The latest activity schedule for the remainder of 2013 and the early part of 2014 is outlined below.
|Los Ocarros||50%||Las Maracas-11||Completing||Now|
|Las Maracas-10||Development Drilling||Imminent|
|Las Maracas-12||Development Drilling||Q3 2013|
|Las Maracas-14 (Sur-1)||Appraisal Drilling||Q4 2013|
|Las Maracas-15||Appraisal Drilling||Q3 2013|
|La Guira-1||Exploration Drilling||Q4 2013|
|El Eden||40%||La Casona-1||Long-Term Test||Q3 2013|
|La Casona-2 ST||Appraisal Drilling||Q3 2013|
|Rumi-1||Exploration Drilling||Q3 2013|
|25%||Curiara-1||Long-Term Test||Q1 2014|
|El Porton Exploration||100%||Crypto-1||Exploration Drilling||Q1 2014|
|LLA 10||39%||Malavar-1||Exploration Drilling||Q4 2013/Q1 2014|
As of the date of this press release, Petroamerica has over US $48 million in cash on hand, and expects cash flows from production to remain strong through the rest of the year. Estimated exploration and development expenditures for the remainder of 2013 are projected to be approximately US $44 million, and the Company expects to finance it activities for the rest of 2013 and well into 2014 out of cash on hand and through cash flow generated from production operations.
Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica produces more than 5,000 barrels of oil per day from two oil discoveries, has one new discovery under appraisal and has interests in six exploration blocks, all located in Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
This news release includes forward-looking statements related to the expected occurrences in relation to the properties and drilling activities identified. A multitude of factors can cause actual events to differ significantly from any anticipated development and although Petroamerica 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 upon assumptions that Petroamerica has made concerning the oil and gas industry in Colombia, the reliability of available data regarding the properties, and the continuing market for oil and gas. Risk factors may include the uncertainty of conducting operations under a foreign regime, the availability of labour and equipment, the fluctuating price of oil and gas, and Petroamerica's dependence upon other participants in the property areas. Neither Petroamerica nor any of its subsidiaries nor any of its officers or employees guarantees 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 the opinions expressed in this document or the actual occurrence of the 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 because 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.
Data obtained from the initial testing results at the well identified in this press release, including barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The well test results obtained and disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.
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: Petroamerica Oil Corp.
For further information:
President and CEO
COO, Executive Vice President
Tel Bogota, Colombia: +57-1-744-0644
Tel Calgary, Canada: +1-403-237-8300
Web Page: www.PetroamericaOilCorp.com