TORONTO, Jan. 25 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today an additional discovery at its Quifa-14 well, drilled as an appraisal well in the Quifa Block, located in the Llanos Basin of Colombia. It has also announced an operational update for Abanico, La Creciente and Rubiales Blocks.
The Quifa-14 well was drilled as the third appraisal well for the discovery well Quifa-5 on Prospect "E". The well found the top of the Carbonera basal sands at 2991 feet true vertical depth (TVD), or 2,245 feet true vertical depth at sub-sea level (TVDSS) and the oil-water contact (OWC) at 3,060 feet TVD, or 2,315 feet TVDSS, resulting in an oil column of 69 feet at the well. The petrophysical evaluation of the well logs indicates a net pay zone of 33 feet, with 32% average porosity. The Quifa-14 well was drilled as a deviated well from the Quifa-5 surface location, slanted 60 degrees and 1.2 km to the southwest. The results of this well, along with the results of the Quifa-8, Quifa-12 and Quifa-17 appraisal wells confirm the acreage originally interpreted for Prospect "E" (refer to the results reported for the Quifa-5, Quifa-8, Quifa-12 and Quifa-17 wells in the company's press releases dated November 26, 2008, August 26, 2009, November 9, 2009 and December 9, 2009, respectively). The company is now planning to complete the well as a highly deviated-hole producer.
Operational update for Abanico, La Creciente and Rubiales
In the Abanico Block, located in the Upper Magdalena Valley of Colombia, the Abanico-34 and Abanico-35 wells have been producing at an average of 1,392 bopd and 485 bopd, respectively. The increase in the average production of the Abanico-34 well is the result of a hydraulic fracturing in the Lower Guadalupe reservoir sands. Given the excellent results at the Abanico-34 well, the company is planning to perform the same type of simulation on the Abanico-35 and Abanico-20 wells.
In the La Creciente Block, the average daily production of the La Creciente "A" field is approximately 61.7 MMcfd or 10,800 boepd (1 boepd equals 5,700 cfg). The production is currently coming from wells LC-1, LC-3 and LC-4.
The combination of the aggressive development drilling campaign in the Rubiales-Piriri Block and the production coming from the exploratory and appraisal wells in the Quifa Block is what enabled gross production of those fields to reach 112,450 bopd; representing 111,400 bopd from Rubiales-Piriri and 1,050 bopd from Quifa.
The gross production operated by the company on the Rubiales, La Creciente, Abanico, Quifa, Acacias, Guaduas and Arce fields reached 127,903 bopd and the production coming from the non-operated fields of Rio Ceibas and Puli reached 2,049 bopd for a total gross production of 129,952 bopd and a total net production after royalties of 52,865 boepd.
Mr. Ronald Pantin, Chief Executive Officer, commented: "The results of the appraisal well at Quifa continue to show the extension of the reservoir into new areas and further supports our development plan for the block. As well, the results from the Abanico field wells underline our commitment to use the best, most-efficient technology and processes to reach our production goals."
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 Quifa Block in the Llanos Basin in association with Ecopetrol S.A., the Colombian national oil company. 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 a current net production of over 52,865 barrels of oil equivalent per day (after royalties), with working interests in 32 blocks in Colombia and Peru.
Information in this press release expressed in barrels of oil equivalent (boes) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. 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.
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 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 April 1, 2009 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.
SOURCE Pacific Rubiales Energy Corp.
For further information: For further information: Mr. Ronald Pantin, Chief Executive Officer and Director, Mr. Jose Francisco Arata, President and Director, (416) 362-7735; Ms. Belinda Labatte, (647) 428-7035