TORONTO, Feb. 20, 2013 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) announced today the discovery of natural gas
and condensate in the Manamo-1X exploration well drilled in the Guama
Block in the Lower Magdalena basin, onshore northern Colombia. The
Company has 100% working interest in the block and is the operator.
Ronald Pantin, Chief Executive Officer of the Company, commented: "This
is an important discovery for Pacific Rubiales, as it demonstrates the
upside potential of both the Guama block and the Lower Magdalena basin
where the Company has a large exploration acreage position. It also
validates the geophysical seismic model being used to successfully
identify these condensate rich gas accumulations."
The Manamo-1X well was drilled following two previous exploration
discoveries in the block, the Pedernalito-1X well drilled in 2010 and
the Cotorra-1X well drilled in early 2012. The well targeted the
Porquero Medio C and D sands and silts of Miocene age, a
low-permeability play successfully tested by the earlier exploration
wells. In addition to encountering low-permeability sands, the well
also resulted in the discovery of a new sand reservoir at a
stratigraphic level in the Porquero Medio D zone, which is different
and independent of the sand intervals tested in the Cotorra-1X well.
The Manamo-1X well was drilled to a total depth of 7,600 feet. The
petrophysical evaluation indicates a total of 251 feet of net pay
averaging 18% porosity across a gross interval exceeding 400 feet. The
well was tested across a 91 foot perforated zone in the new prospective
sand. This sand does not require hydraulic frac stimulation, leaving
additional prospective pay zones untested for further evaluation,
including a 23 foot gas sand identified in the shallower Porquero. The
Manamo-1X well reached a maximum gas flow rate of 4.9 MMcf/d and 296
bbl/d 54°API condensate through a 16/64" choke in a three-stage
isochronal test, and an average rate of 2.8 MMcf/d gas and 160 bbl/d
condensate through a 12/64" choke at 3,720 psi well head pressure, on
an extended flow test. The well has now been shut-in for a four day
Immediately following the current testing program, the Company plans to
drill the Capure-1X exploration well approximately 2 km west of
Pedernalito-1X, aiming to extend the Porquero Medio play to the
northeast. The Capure-1X well will complete the commitment for the
final exploration phase on the Guama block. A program of extended flow
tests is planned for the wells drilled on the block, and is expected to
be commenced later in the year. Data from the extended flow tests will
be used to determine the long-term flow characteristics of the Miocene
reservoir sands, as well as the potential resource contribution from
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 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 Guinea.
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; and the other
risks disclosed under the heading "Risk Factors" and elsewhere in the
Company's annual information form dated March 14, 2012 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.
Boe may be misleading, particularly if used in isolation. A boe
conversion ratio of 5.7 Mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. The estimated values
disclosed in this news release do not represent fair market value. The
estimates of reserves and future net revenue for individual properties
may not reflect the same confidence level as estimates of reserves and
future net revenue for all properties, due to the effects of
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.
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.
West Texas Intermediate Crude Oil.
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
+57 (1) 511-2319