CALGARY, Jan. 6, 2012 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company") announces preliminary results from the Balay-3 appraisal well that
was drilled to evaluate the northern extension of the Balay field in
the Balay Block of the Llanos Basin, Colombia.
The Balay-3 well reached a total depth of 14,610 feet Measured Depth
("MD") within the Guadalupe Formation, and the top of the main
objective, the Mirador Formation, was encountered deeper than expected.
A petrophysical evaluation of the wireline logs indicated 3 feet of net
oil pay at the very top of the Mirador Formation. A cased-hole Drill
Stem Test ("DST") (13,960 feet to 13,985 feet MD) was run to evaluate
this interval and was dry, meaning that no reservoir fluids were
recovered due to the low permeability of the reservoir.
A second DST was performed at a lower interval (13,984 feet to 14,000
feet MD), recovering a cumulative volume of 1,200 barrels of formation
water. A pressure build-up of this second interval was performed and
the producing wells at Balay-1 and Balay-2 were monitored during
testing. This data is now being evaluated and should provide invaluable
information on reservoir pressure and connectivity between wells.
Injectivity tests are currently underway with the objective of
converting the Balay-3 well into a water disposal well as part of the
Balay field development plan.
Petroamerica Oil Corp., through its wholly owned subsidiary,
Petroamerica International Corp., holds a 15% participating interest in
the Balay Block.
Petroamerica is a junior oil and gas company operating in Colombia and
its shares are listed on the TSX Venture Exchange under the symbol
ON BEHALF OF PETROAMERICA OIL CORP.
President and CEO
This news release includes information that constitutes "forward-looking
information" or "forward-looking statements". A multitude of factors
can cause actual events to differ significantly from any anticipated
developments and although the Company believes that the expectations
represented by such forward-looking statements 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.
Material risk factors include, but are not limited to: the risks of the
oil and gas industry in general, such as operational risks in exploring
for, developing and producing crude oil and natural gas, market demand
and unpredictable shortages of equipment and/or labour; potential
delays or changes in plans with respect to exploration or development
projects or capital expenditures; fluctuations in oil and gas prices,
foreign currency exchange rates and interest rates, and reliance on
Neither the Company nor any of its subsidiaries nor any of its officers,
directors or employees guarantees that the assumptions underlying such
forward-looking statements are free from errors nor does any of the
foregoing accept any responsibility for the future accuracy of the
opinions expressed in this document or the actual occurrence of the
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.
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.
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