TORONTO, Nov. 28, 2011 /CNW/ - PetroMagdalena Energy Corp. (TSXV: PMD),
a company focused on oil and gas exploration and production in
Colombia, today announced an update on its ongoing exploration program.
Luciano Biondi, Chief Executive Officer, commented: "We are pleased with
the momentum we have achieved with our exploration program, which we
fully intend on continuing into 2012. The testing for the Yaraqui-1X
well in the Topoyaco block has been prepared and operations are
ongoing, and the new discovery at our light oil field, Petirrojo,
although still at early stages, shows great promise, with the
Petirrojo-2 well being tested and the Petirrojo-3ST completion to
In the Yaraqui-1X exploration well, a seven inch liner was successfully
cemented from 8,356 feet MD to 10,643 feet MD last week and the first
test, which is being conducted in the Villeta formation, has begun.
Results of this test will be announced when completed. Four intervals
in total are to be tested, three in the Villeta formation and one in
the Neme sand of the Lower Rumiyaco formation.
Petirrojo Field (Cubiro Block B)
The Petirrojo-2 development well will be completed in two sands, the
Carbonera C-7A (8 feet of net pay) and C-7B (23 feet of net pay).
Initial testing of the well is currently being conducted, the results
of which will be provided when completed.
The Petirrojo-3ST development well has also been drilled and cased. A
workover rig will move in after the completion of the Petirrojo-2 well
and the drilling rig is moved off location. The Petirrojo-3ST well will
also be completed in the Carbonera formation, C-7A and C-7B sands, with
8 and 21 net feet of net pay respectively.
The Petirrojo-1X well is currently producing at a stable rate of 1,002
bopd, with 67% water cut from Carbonera C-7 with an electrical
Yopo Structure (Cubiro Block B)
The Yopo exploration prospect is located 2 km north of the producing
Petirrojo Field and 5 km south of the producing Palmarito Field
(operated by Perenco on the offsetting block). The exploratory well
Yopo-1X will be drilled to test this structure and is expected to be
spudded within two weeks. The main objectives in this well are the
Carbonera C7 sands, estimated to be at a depth of 5,800 feet MD. The
drilling location is ready and the drilling rig is 98% mobilized.
This Block is 7 km north of the Cubiro Block and the exploratory well
Azor-1X will be directionally drilled to test the Carbonera formation
at approximately 7,200 feet MD. The location and access road for Azor
1X well will be completed in one week and as soon as the drilling rig
finishes the Petirrojo-2 well completion, it will move to drill the
Azor-1X exploration well.
Santa Cruz Block
The Santa Cruz Block is located in the Catatumbo Basin in Colombia and
the exploratory well Santa Cruz 1X is being drilled to test the Mirador
and Barco formations at an approximate total depth of 13,500 feet MD.
The well was spudded on the 20th of November and is currently drilling
at 2,553 feet MD and it is expected to be at depth in the middle of the
first quarter of 2012.
The Cerro Gordo-1 gas well in the Carbonera Block was shut in on the 9th
of November, 2011, for the first long term pressure build up as part of
the Company's technical evaluation plan for this field. Plans are
progressing to spud an exploratory well in the first quarter of 2012,
and this well will fulfill the last exploration obligation on the
block. The exploration well will target the La Luna, which is the
producing interval in Cerro Gordo 1 well, and Cogollo formations.
PetroMagdalena is a Canadian-based oil and gas exploration and
production company, with working interests in 19 properties in five basins in Colombia. Further information can be
obtained by visiting our website at www.petromagdalena.com.
All monetary amounts in U.S. dollars unless otherwise stated. This news
release contains certain "forward-looking statements" and
"forward-looking information" under applicable Canadian securities laws
concerning the business, operations and financial performance and
condition of PetroMagdalena. Forward-looking statements and
forward-looking information include, but are not limited to, statements
with respect to estimated production and reserve life of the various
oil and gas projects of PetroMagdalena; the estimation of oil and gas
reserves; the realization of oil and gas reserve estimates; the timing
and amount of estimated future production; costs of production; success
of exploration activities; and currency exchange rate fluctuations.
Except for statements of historical fact relating to the company,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized by
words such as "plan," "expect," "project," "intend," "believe,"
"anticipate", "estimate" and other similar words, or statements that
certain events or conditions "may" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at the
date the statements are made, and are based on a number of assumptions
and subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of PetroMagdalena and there is no assurance they will prove to
be correct. Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
changes in market conditions, risks relating to international
operations, fluctuating oil and gas prices and currency exchange rates,
changes in project parameters, the possibility of project cost overruns
or unanticipated costs and expenses, labour disputes and other risks of
the oil and gas industry, failure of plant, equipment or processes to
operate as anticipated. Although PetroMagdalena has attempted to
identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or
results not to be anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. PetroMagdalena undertakes no obligation
to update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by applicable
securities laws. The reader is cautioned not to place undue reliance on
Statements concerning oil and gas reserve estimates may also be deemed
to constitute forward-looking statements to the extent they involve
estimates of the oil and gas that will be encountered if the property
is developed. 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. Estimated values of
future net revenue disclosed do not represent fair market value.
Neither 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 news
SOURCE PetroMagdalena Energy Corp.
For further information:
Chief Financial Officer
Investor Relations Representative