TORONTO, Feb. 9 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today a new oil discovery at the Quifa-6 well, on Prospect "A", and another successful appraisal well on Prospect "E" (Quifa-18), within the Quifa Block located in the Llanos Basin of Colombia.
The Quifa-6 well was drilled in Prospect "A", in the northwestern part of the Quifa block, approximately 25 km from the discoveries made on prospects D, E, H and I. The well found the top of the Carbonera basal sands at 3,378 feet measured depth (MD), or 2,732 feet true vertical depth at sub-sea level (TVDSS), and the oil water contact (OWC) at 3,404 feet MD, or 2,758 feet TVDSS, resulting in an oil column of 26 feet gross at the well. The petrophysical evaluation of the well indicates a net pay zone of 16 feet with 30% average porosity. The Quifa-6 well was drilled at the southwestern flank of prospect "A", thereby confirming the OWC at the deepest closing contour of the structure, or 2,758 feet TVDSS. The crest of the structure, located 8 km to the northeast, is mapped at 2,680 feet TVDSS and implies a maximum of 78 feet of hydrocarbon column measured from the crest to the OWC. The company is presently planning to test the well and complete it as a vertical hole producer.
The average hydrocarbon column for all of Prospect "A" is 35 feet. The structure at Prospect A is very well defined with 9 seismic profiles, allowing for an excellent control of the mapped structure. The structural trap has an area of approximately 8,000 acres, with an elongation of close to 16 km in the southwest-northeast direction and 2 km crosswise. The company regards this as a very important discovery because it indicates that the petroleum system works perfectly in the northern reaches of the Quifa block and it opens new and exciting opportunities for Prospects F, G, and Q. These are located on the same trend and are next in the drilling sequence planned for the first quarter of 2010.
The Quifa 18 well was drilled as the fourth appraisal well for the discovery well Quifa-5 on Prospect "E". The well found the top of the Carbonera basal sands at 3,002 feet TVD, or 2,257 feet TVDSS and the OWC at 3,060 feet TVD, or 2,315 feet TVDSS, resulting in an oil column of 58 feet at the well. The petrophysical evaluation of the well logs indicates a net pay zone of 49 feet (the thickest continuous reservoir section found on prospect "E" and in the Quifa block to date), with 33% average porosity (also the best porosity found in the Quifa Block). The Quifa-18 well was drilled as a deviated well from the Quifa-5 surface location, slanted 61 degrees and 872m to the northeast. The results of this well, along with the results of the Quifa-5 (discovery well) and Quifa-8, Quifa-12, Quifa-17 and Quifa 14 appraisal wells confirm a total prospect area of 4,815 acres and an average net pay of 33 feet for prospect "E" (refer to the results reported for the Quifa-5, Quifa-8, Quifa-12, Quifa-17 and Quifa-14 wells in the company's press releases dated November 26, 2008, August 26, 2009, November 9, 2009, December 9, 2009, and January 25, 2010, respectively). This well finishes the appraisal campaign for prospect E. The company is now planning to complete the well as a highly deviated-hole producer.
In addition to the wells to be drilled in Prospects "F", "G" and "Q", and as a result of this campaign, the Company is also planning to drill 2 additional wells in prospects "K" and "L", and 3 appraisal wells in prospects "H" and "D", for a total of 8 exploratory wells to be drilled during the first two quarters of 2010.
Mr. Ronald Pantin, Chief Executive Officer, commented: "The results of these new exploration wells are a further confirmation of our vision for Quifa and underline our belief in the potential of the blocks around Rubiales."
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 53,022 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