Petroamerica Announces Light Oil Discovery at La Casona-1 and Provides an Operations Update for its Colombian Activities
CALGARY, Nov. 13, 2012 /CNW/ - Petroamerica Oil Corp. (TSXV:PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to provide an update of ongoing drilling and production operations for certain properties in Colombia, including the discovery of light oil at La Casona-1. The Company is actively involved in the drilling and testing of the La Casona-1 exploration well, the Las Maracas-5 appraisal well and the Balay-4 development well.
The La Casona-1 exploration well, situated on the El Eden Block where Petroamerica holds a 40% working interest, was spud on September 4, 2012 and has reached a total depth of 16,450 feet measured depth ("MD") in the Une Formation. The well encountered hydrocarbon shows while drilling through the C7, Mirador, Gacheta and Une reservoirs. A petrophysical evaluation of LWD (logging-while-drilling) and cased-hole logs indicates a total of more than 80 feet (true vertical depth ("TVD")) of potential net hydrocarbon pay in the well. The two primary reservoir objectives, the Mirador and Une, have interpreted gross hydrocarbon-bearing columns of up to 40 feet (TVD) and 77 feet (TVD), and potential net pay thicknesses of 30.5 feet (TVD) and 50 feet (TVD), respectively. The well was cased-off and the Une reservoir flow tested using the drilling rig for more than 33 hours with intervening shut-ins. During the last and most representative flow period of 8 hours and 30 minutes, the well produced under natural flow conditions light oil (36o API) at an average rate of approximately 1,200 barrels of oil per day ("bopd") with 4.0 MMCFD of gas and a maximum oil rate of 1,288 bopd. The well head flowing pressure was 3,010 psi and the watercut at the end of the test was less than 0.8%. The well flow rate was restricted through a 20/64 inch choke due to gas flaring limitations. The drilling rig will be released and a workover rig will further assess the well's ultimate flow potential and test other reservoirs with identified hydrocarbon pay. Of Petroamerica's 40% working interest in the El Eden Block, 15% is still pending ANH (Colombian National Hydrocarbon Agency) approval.
The Las Maracas-5 well, located on the Los Ocarros Block where Petroamerica holds a 50% working interest, was spud on September 30, 2012 and has reached a total depth of 12,970 feet MD in the Une Formation. Oil saturated cores were recovered from the Mirador and Gacheta reservoirs and these cores are currently being analyzed in the laboratory. The well has been logged and cased with the wire-line log interpretation indicating more than 48 feet of net oil pay (TVD) in the Mirador and Gacheta sands, including a new lower Gacheta sand with 15 feet of net oil pay (TVD). The well is undergoing flow testing and thus far, the new lower Gacheta sand has yielded over a 20 hour flow period, under natural flow through a one inch choke, an average rate of 635 bopd and a maximum rate of 754 bopd of 32o API oil. The watercut at the end of the test was 0.3%. The middle Gacheta sand, which produces at the Las Maracas-3 and Las Maracas-4 wells, will be the next sand to be flow tested following which the Tuscany 109 rig will drill the Las Maracas-6 well.
The Balay-4 development well, situated in the southern part of the Balay Field where Petroamerica holds a 15% working interest, was spud on October 12, 2012. As of November 13, 2012, the well was drilling at a depth of 8,567 feet MD in the Leon Formation.
For the month of October, the Company averaged a total working interest production of 2,718 bopd (2,468 bopd net after royalties).
Petroamerica is also pleased to announce that it has contracted the services of Raj Patel in the capacity of Strategic Advisor for Marketing and Risk Management. Mr. Patel is a Professional Engineer with over 30 years of experience in marketing crude oil, natural gas liquids and natural gas, as well as commodity price risk management. Mr. Patel was formerly the Vice President of Marketing for Vermillion Energy, and has held senior marketing positions with other companies, including Norcen Energy and Pennzoil Canada.
Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica has production coming from two oil discoveries and has interests in seven 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 identified including expectations regarding the results and timing of drilling test wells. 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 referenced wells, which may include 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 test results 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
Executive Vice President Exploration & Business Development