CALGARY, June 5, 2012 /CNW/ - ArPetrol Ltd. ("ArPetrol" or the
"Company") (TSXV: RPT) is pleased to provide an operational update on
activities related to the upcoming drilling on the Faro Virgenes
ArPetrol is in the final stages of preparation for the drilling of its
long reach well program in the Faro Virgenes field. This program is a
continuation of the Company's Argentina investment strategy. The final
rig preparations in the yard have been substantially completed and
mobilization is expected to commence shortly. The first well is
expected to spud during the week of June 25th and to take 45-50 days to drill and complete. Production from the well
which, with success, is expected to exceed 6 million cubic feet per
day, will be tied into ArPetrol's 100 percent owned gas plant. Subject
to achieving successful results from the first well and obtaining
additional financing, ArPetrol would expect to drill a second well.
So far ArPetrol has spent approximately $1.5 Million on engineering and
project management in preparation of drilling, approximately $2.0
Million to prepare the rig and a three well drilling pad and
mobilization to site is expected to cost approximately $3.4 Million.
Operating spreadrates are expected to be approximately $150,000 per
day. Completion and testing is expected to cost approximately $1.1
Million. Estimated well costs range between $16 and $18 Million for
each well, based on a two well program.
All values in this news release are in Canadian dollars unless otherwise
About ArPetrol Ltd.
ArPetrol is a Calgary-based publicly traded company currently engaged in
oil and natural gas exploration, development and production and
third-party natural gas processing in Argentina where it also owns and
operates a gas processing facility with capacity of 85 million cubic
feet (MMcf) per day.
The Company is the resulting entity from the business combination of the
Company (formerly RPT Resources Ltd. ("RPT") and ArPetrol Inc. (now
ArPetrol Holdings Inc., a wholly owned subsidiary of the Company)
completed in the first quarter of 2011. The Company's common shares are
listed on the TSXV under the symbol "RPT".
This news release contains certain forward‐looking statements relating,
but not limited, to operational information, targeted production rates,
expected capital expenditures, drilling plans and the timing associated
therewith, successful well results and availability of future
financing. Forward‐looking information typically contains statements
with words such as "anticipate", "target", "estimate", "expect",
"potential", "could", "should", or similar words suggesting future
outcomes. The Company cautions readers and prospective investors in the
Company's securities not to place undue reliance on forward‐looking
information as, by its nature, it is based on current expectations
regarding future events that involve a number of assumptions, inherent
risks and uncertainties, which could cause actual results to differ
materially from those anticipated by the Company.
Forward‐looking information involves significant known and unknown risks
and uncertainties. A number of factors could cause actual results to
differ materially from those anticipated by the Company, including but
not limited to risks associated with the oil and natural gas industry
(e.g., operational risks in exploration and drilling; inherent
uncertainties in interpreting geological data; changes in plans with
respect to exploration or capital expenditures; the ability to obtain
and retain staff and equipment in a timely and cost efficient manner;
the uncertainty of estimates and projections in relation to costs and
expenses; and health, safety and environmental risks), access to
funding, weather delays and natural disasters, union activities, change
in government policies, the risk of commodity price and foreign
exchange rate fluctuations, and risks associated with international
ArPetrol operates outside of Canada and as such, ArPetrol is subject to
a number of political risks over which it has no control. These risks
may include risks related to economic, social or political instability
or change, the uncertainty of negotiating with foreign governments,
expropriation and/or nationalization, changes in export or exchange
policies, adverse determinations or rulings by governmental
authorities, changes in energy policies or in the personnel
administering them and currency and inflation risks. See the "Risk
Factors" section of the Company's AIF for a further description of
these risks and uncertainties facing ArPetrol.
The forward‐looking information included herein is expressly qualified
in its entirety by this cautionary statement. The forward‐looking
information included herein is made as of the date hereof and the
Company assumes no obligation to update or revise any forward‐looking
information to reflect new events or circumstances, except as required
Additional information relating to the Company is also available on
SEDAR at www.sedar.com.
Neither the TSXV nor its Regulation Services Provider (as defined in the
policies of the TSXV) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE ArPetrol Ltd.
For further information:
Tim Thomas, President and Chief Executive Officer
Ian Habke, Chief Financial Officer
Main Phone: 403-263-6738