CALGARY, Oct. 2, 2013 /CNW/ - Petroamerica Oil Corp. (TSX-V:PTA) ("Petroamerica" or the "Company"), a Canadian oil company operating in Colombia is pleased to provide
an operating and financial update for activities in Colombia.
The Company's cash position, as of September 30, 2013, was approximately
US$64 million and all planned future capital programs through 2014 are
expected to be fully funded from a combination of cash-on-hand and
Company working interest production for the third quarter averaged 5,951
barrels of oil per day ("bopd"), an increase of 18% over production levels reported for the second
quarter of 2013. Company working interest production for the month of
September averaged 6,213 bopd, compared to an August average of 5,997
bopd, representing a 4% increase.
Las Maracas Field, Los Ocarros Block (50% Working Interest)
The Las Maracas field oil production averaged 12,200 bopd gross for the
month of September. Production from the field is currently being
managed with the objective of extending the production plateau,
optimising total fluid production and delaying the future decline.
Looking forward, the Las Ocarros partnership intends to carefully
manage the Las Maracas Field production and it is therefore anticipated
that production is expected to be maintained at approximately 12,000 to
12,500 bopd gross throughout the rest of this year.
The Las Maracas-5 well has been recompleted as a Mirador producer. The
well had been previously producing from the Gacheta and produced
332,886 barrels of oil before being shut in with a water cut of 50% and
being recompleted. A production test from the Mirador over a 7-hour
period on a 30/64-inch choke yielded an average rate of 2,993 bopd
under natural flow conditions. The stabilized rate for the last hour of
the test was approximately 3,200 bopd with 0.5% water cut. This test
again confirms the excellent properties of the Mirador reservoir at the
Las Maracas Field. It is anticipated that the remaining Gacheta oil
volume will be drained by the up dip LM-6 well. Further to this, once
the Mirador starts cutting higher water volumes there is the option to
commingle the production from both the Mirador and Gacheta zones
The Las Maracas-12 development well targeting attic oil in the Gacheta
and Une reservoirs, encountered a total net pay thickness of
approximately 17 feet. The well produced light oil (29.8o API) on test from the Une Formation under natural flow conditions. The
most representative average flow rate was 674 bopd through a 34/64-inch
choke over a 17-hour period. During the test a maximum oil rate of
1,582 bopd was observed and the water cut at the end of the test was
25% with the well still cleaning up. The well has since been completed
as an Une oil producer.
The Las Maracas-14 well has successfully delineated the southern extent
of the Las Maracas Field. The well encountered approximately10 feet of
net pay in the Mirador Formation. The Gacheta and Une Formations were
deemed to be water bearing from the observed log response. The Mirador
is expected to be production tested using a work over rig and the
Tuscany 109 rig will now mobilize to drill the La Guira prospect
located to the immediate south of the Las Maracas Field.
La Casona Discovery, El Eden Block (40% Working Interest)
The La Casona-2 Sidetrack appraisal well reached its target depth of
16,700 feet, however, while pulling out of the hole prior to wire-line
logging, part of the well bore collapsed trapping the drill string.
Following several unsuccessful fishing attempts, the decision was taken
to abandon the deeper part of the well bore and initiate a new
sidetrack (La Casona-2 Sidetrack-2). LWD (Logging While Drilling) logs
from the original well bore indicates up to 46 feet of potential net
oil pay in the Mirador Formation, 25 feet in the Gacheta and up to 25
feet of potential net pay in the Une Formation, with the caveat
however, that logs over the Une are of poor quality. Given the
encouraging log response and good oil shows encountered in the Mirador
Formation, the primary objective of the new sidetrack will be to drill
and test the potential Mirador oil leg only. The new sidetrack is
expected to kick off at a depth of approximately 14,700 feet in the
Carbonera C7 Formation, and is expected to drill approximately 600 feet
to its new target depth.
Construction of the long-term test production facility for the La
Casona-1 well, which includes gas compression, is now complete.
However, in the interest of safety, production from this well will not
commence before the Tuscany 119 rig, which is drilling the La Casona-2
Sidetrack-2 well from the same surface pad, has moved off location.
Petroamerica Oil Corp. is a junior oil and gas exploration and
production company with activities in Colombia. Petroamerica produces
more than 6,000 bopd from two oil fields, is appraising two new
discoveries and has interests in six exploration blocks, all located in
Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX
Venture Exchange under the symbol "PTA".
This news release includes forward-looking statements related to the
expected occurrences in relation to the properties and drilling
activities identified. A multitude of factors can cause actual events
to differ significantly from any anticipated development and although
Petroamerica believes that the expectations represented by such
forward-looking statements are reasonable; there can be no assurance
that such expectations will be realized. These forward looking
statements are based upon assumptions that Petroamerica has made
concerning the oil and gas industry in Colombia, the reliability of
available data regarding the properties, and the continuing market for
oil and gas. Risk factors may include the uncertainty of conducting
operations under a foreign regime, the availability of labour and
equipment, the fluctuating price of oil and gas, and Petroamerica's
dependence upon other participants in the property areas. Neither
Petroamerica nor any of its subsidiaries nor any of its officers or
employees guarantees that the assumptions underlying such
forward-looking statements are free from errors, nor do any of the
foregoing accept any responsibility for the future accuracy of the
opinions expressed in this document or the actual occurrence of the
Although the Company believes that the expectations represented by the
forward-looking statements contained herein are reasonable, undue
reliance should not be placed on the forward-looking statements because
there can be no assurance that such expectations will be realized. The
forward-looking statements contained in this document are made as of
the date hereof and the Company undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
Data obtained from the initial testing results at the well identified in
this press release, including barrels of oil produced and levels of
water-cut, should be considered to be preliminary until a further and
detailed analysis or interpretation has been done on such data. The
well test results obtained and disclosed in this press release are not
necessarily indicative of long-term performance or of ultimate
recovery. The reader is cautioned not to unduly rely on such results as
such results may not be indicative of future performance of the well or
of expected production results for the Company in the future.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Petroamerica Oil Corp.
For further information:
President and CEO
COO, Executive Vice President
Tel Bogota, Colombia: +57-1-744-0644
Tel Calgary, Canada: +1-403-237-8300
Web Page: www.PetroamericaOilCorp.com