TORONTO, Jan. 11 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) today announced that it has drilled two successful appraisal wells: one (ABA-35) in the northern extension of the Abanico Field and one (QUIFA-13) in prospect "D" at Quifa block, located in the Upper Magdalena and Llanos Basins respectively.
Well ABA-35 was drilled as part of the appraisal campaign in the north of the Abanico Field. The well found the top of the Upper Guadalupe Sand reservoir at 2,846 feet measured depth ("MD"), or 1,640 feet true vertical depth below sea level ("TVDSS") and the top of the Lower Guadalupe sand reservoir at 3,096 feet MD or 1,845 feet TVDSS, for a total gross oil column of 205 feet and 141 feet net, respectively. The petrophysical evaluation indicates net pay of 53 feet and 108 feet and average porosities of 20% and 23%, respectively, for those reservoirs for a total net pay of 161 feet. Oil was found down to 1,985 feet TVDSS at the base of Lower Guadalupe without encountering an oil-water contact. A first production test carried on three perforated intervals in the Lower Guadalupe (3,198 - 3,170; 3,150 - 3,128 and 3,110 - 3100 feet MD) for a total perforated length of 60 feet MD yielded an average daily rate of 450 barrels of fluids of 21 degrees API oil with a water cut of 3%. This result incorporates 80 additional feet of hydrocarbon column to the reservoir, giving room for further delineation drilling toward the north. The well ABA-35 is the third consecutive successful appraisal well (previous wells were ABA-20 and ABA-34) drilled in the Company's attempt to extend the Abanico reservoir to the north.
As part of the exploration activity at the Quifa block, well QUIFA-13 was drilled slanted on prospect "D", finding the top of the Carbonera Basal sands at 2,952 feet MD, or 2,300 feet TVDSS and the top of basement at 3,152 feet MD. The petrophysical evaluation indicates net pay of 19 feet, with an average porosity of 29% and oil-water contact at 2,982 feet MD or 2,330 feet TVDSS. The company is now making preparations for completing the well as an oil producer. This well is the fifth consecutive successful appraisal well (previous reported wells on prospect D were Quifa-9, Rub-357, Rub-366 and Rub-251) drilled on prospect D since the discovery made by twell Rub-147 in 2008. The company will continue to explore the flanks of prospects "B" and "C" (see press release dated December 30) to further understand the lower reaches of the structure where only the upper part of the crest was drilled previously. Prospects on the northern side of Quifa will be explored in the first quarter, 2010 as part of the 20 exploration/appraisal wells drilling campaign for the year.
Mr. Ronald Pantin, Chief Executive Officer, commented: "The results from the appraisal well in the Abanico field open new opportunities in the northern region of the area which we are now beginning to delineate. The results from the Quifa 13 well once again underline our optimism for the block, in particular for Prospect "D" where we already have identified significant reserves."
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 50,000 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 (boe) 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 6 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