TORONTO, Feb. 15, 2012 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) announced today the discovery of natural gas
and condensate in the Cotorra-1X exploration well, drilled on the Guama
Block in the Lower Magdalena basin. 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 exploration discovery for Pacific Rubiales and
demonstrates the potential of both the Guama block and Lower Magdalena
basin where the Company has a large exploration acreage position and is
looking to increase its gas reserves to support its initiative to
develop an LNG export market in the future".
The Cotorra-1X well was drilled as an exploratory well after an earlier
exploration success on the block, the Pedernalito-1X well drilled in
2010. The well targeted Porquero Medio sands and silts of Miocene age,
a low-permeability play successfully tested by Pedernalito-1X.
Cotorra-1X was drilled to a total depth of 7210 feet in mid-January.
The petrophysical evaluation showed a total of 40 feet of net pay, with
average 20% porosity.
The well was perforated only in the deeper pay zone, across two
intervals; leaving overlying pay zones untested for further evaluation.
After clean-up while flowing through a 1/2" choke, Cotorra-1X reached a
maximum gas flow rate of 7.5 MMcf/d and 370 bbl/d 56°API condensate,
followed by a three-stage isochronal and one extended flow test through
12/64" choke which flowed at 2.6 MMcf/d and 121 bbl/d condensate at
3137 psi well head pressure.
During the month, the Company also completed drilling the Apamate-2X
exploration well on its 100 percent owned and operated La Creciente
Block. The well failed to test hydrocarbon flow at economic rates and
was plugged and abandoned.
Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy
crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil
operator which operates the Rubiales and Piriri oil fields in the
Llanos Basin in association with Ecopetrol, S.A., the Colombian
national oil company, and 100 percent of Pacific Stratus Energy Corp.
which operates the La Creciente natural gas field. The Company is
focused on identifying opportunities primarily within the eastern
Llanos Basin of Colombia as well as in other areas in Colombia and
northern Peru. Pacific Rubiales has working interests in 46 blocks in
Colombia, Peru and Guatemala.
The Company's common shares trade on the Toronto Stock Exchange, La
Bolsa de Valores de Colombia and 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, Guatemala or Peru; 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 11, 2011 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.
SOURCE Pacific Rubiales Energy Corp.
For further information:
Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700
Ms. Carolina Escobar V
Corporate Manager Investor Relations
+57 (1) 628-3970