Pacific Rubiales Energy Corp. - Los Angeles-1X Well results.pdf
TORONTO, Feb. 5, 2014 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE)
(BVC: PREC) (BOVESPA: PREB) today announced well test results from the
Los Angeles-1X well located in Block 131 and an update on its Block
126, both located in the onshore Ucayali Basin in Peru. The Company
gained its interest in both blocks through the Petrominerales Ltd.
acquisition completed in late 2013.
Ronald Pantin, Chief Executive Officer of the Company, commented:
"The Company is very encouraged by the test results in the Los Angeles
1X well in Block 131 and is looking forward to progressing this
discovery and the earlier Sheshea-1X oil discovery in Block 126 through
an evaluation phase and future development and production. These light
oil discoveries support our confidence in the potential of the
under-explored onshore basins in Peru."
Pacific Rubiales, through its wholly owned subsidiary Pan Andean
Resources Plc (Perú), Sucursal del Perú, holds a 30% working interest
in Block 131 in Peru. The Company, in joint operations with the
operator CEPSA Peru S.A., has now carried out the third phase of
exploration in the block. The operator carried 100% of the well costs
and will retain the remaining 70% working interest. The Los Angeles 1X
well in Block 131 was spud in mid-September, 2013 and reached a total
depth of 12,409 feet in late November. Petrophysical evaluation
indicated the presence of 62 feet of net pay in the Cretaceous aged
Three separate tests have now been conducted across different net pay
intervals in the Cushabatay formation under swabbing and natural flow
conditions and through variable choke sizes over 22 to 60 hour test
periods. Final flow rates from the three test intervals were 135 bbl/d,
936 bbl/d and 2,351 bbl/d respectively of 44° to 45° API light sweet
oil. Water cuts ranged from 10% in the lowest interval to 0.3% to nil
in upper intervals.
The produced oil was trucked and sold to the nearby Pulcallpa refinery
in Peru. The operator has applied for a 30 day initial production test
to further understand the reservoir drive mechanism to be followed by
an extended production test beginning in mid-2014 (subject to
government approvals). Both companies are currently evaluating
development and oil marketing strategies for the block.
The Sheshea-1X exploration well was drilled to a total depth of 8,925
feet in late 2012 and tested 1,430 bbl/d of 53° API light sweet oil
with no water from a ten foot perforated zone in the Cretaceous aged
Chonta formation. The Cretaceous aged Agua Caliente Formation tested 80
bbl/d of 42° API with a 97% water cut suggesting a potential
accumulation updip from the well. The Company holds a 100% operated
working interest in Block 126 and has recently applied for two
Environmental Impact Assessments ("EIA") in order to progress the discovery to an evaluation phase followed by
the expected development of the discovery. The first EIA is for 23
drilling pads, comprised of 8 wells each plus a 2D and 3D seismic
program. The second EIA is primarily for early production facilities.
The Company expects to receive the approval of these EIA's by the end
Pacific Rubiales, a Canadian company and producer of natural gas and
crude oil, owns 100% of Meta Petroleum Corp., which operates the
Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and
100% of Pacific Stratus Energy Colombia Corp., which operates the La
Creciente natural gas field in the northwestern area of Colombia.
Pacific Rubiales has also acquired 100% of Petrominerales Ltd., which
owns light and heavy oil assets in Colombia and oil and gas assets in
Peru, 100% of PetroMagdalena Energy Corp., which owns light oil assets
in Colombia, and 100% of C&C Energia Ltd., which owns light oil assets
in the Llanos Basin. In addition, the Company has a diversified
portfolio of assets beyond Colombia, which includes producing and
exploration assets in Peru, Guatemala, Brazil, Guyana and Papua New
The Company's common shares trade on the Toronto Stock Exchange and La
Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on
Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker
symbols PRE, PREC, and PREB, respectively.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements,
other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements regarding estimates and/or assumptions in
respect of production, revenue, cash flow and costs, reserve and
resource estimates, potential resources and reserves and the Company's
exploration and development plans and objectives) are forward-looking
statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently
available to the Company. Forward-looking statements are subject to a
number of risks and uncertainties that may cause the actual results of
the Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that they
will have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or events to differ materially
from current expectations include, among other things: uncertainty of
estimates of capital and operating costs, production estimates and
estimated economic return; the possibility that actual circumstances
will differ from the estimates and assumptions; failure to establish
estimated resources or reserves; fluctuations in petroleum prices and
currency exchange rates; inflation; changes in equity markets;
political developments in Colombia, Peru, Guatemala, Brazil, Papua New
Guinea or Guyana; changes to regulations affecting the Company's
activities; uncertainties relating to the availability and costs of
financing needed in the future; the uncertainties involved in
interpreting drilling results and other geological data; the impact of
environmental, aboriginal or other claims and the delays such claims
may cause in the expected development plans of the Company and the
other risks disclosed under the heading "Risk Factors" and elsewhere in
the Company's annual information form dated March 13, 2013 filed on
SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws,
the company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company believes
that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.
In addition, reported production levels may not be reflective of
sustainable production rates and future production rates may differ
materially from the production rates reflected in this press release
due to, among other factors, difficulties or interruptions encountered
during the production of hydrocarbons.
Billion cubic feet.
Billion cubic feet of natural gas equivalent.
Barrel of oil.
Barrel of oil per day.
Barrel of oil equivalent. Boe's may be misleading, particularly if used
in isolation. The Colombian standard is a boe conversion ratio of 5.7
Mcf:1 bbl and is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Barrel of oil equivalent per day.
Thousand barrels of oil equivalent.
Million barrels of oil equivalent.
Thousand cubic feet.
Company working interest production after deduction of royalties.
Total Field Production
100% of total field production before accounting for working interest
Company working interest production before deduction of royalties.
West Texas Intermediate Crude Oil.
This news release was prepared in the English language and subsequently
translated into Spanish and Portuguese. In the case of any differences
between the English version and its translated counterparts, the
English document should be treated as the governing version.
PDF available at: http://stream1.newswire.ca/media/2014/02/05/20140205_C7630_DOC_EN_36282.pdf
SOURCE: Pacific Rubiales Energy Corp.
For further information:
Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700
Sr. Manager, Investor Relations
+57 (1) 511-2298
Manager, Investor Relations
+1 (416) 362-7735