HOUSTON, October 26 /CNW/ - PetroSouth Energy Corp. (the "Company")
(OTCBB:PSEG), an energy exploration and production company focused on
high-impact energy prospects in Colombia, South America, is pleased to
announce the acquisition of a 6% working interest in the 64,000-acre Carbonera
Exploration and Exploitation Contract, and participation in three future
The 6% working interest was acquired for US $420,000 and other
considerations from Omega Energy's exploration block located in Catatumbo
Basin region of northeastern Colombia. The operator of the Carbonera Contract
is Well Logging Ltda. Fulfillment of the first Phase contract commitments
(Phase 1 re-entry of Cerro Gordo-1) was met prior to the Company acquiring the
6% working interest. Pursuant to the terms of the Contract the Company will
participate with drilling one exploration well in each of Phase 2 (12 months -
April 28, 2008), Phase 3 (12 months - April 29, 2009) and Phase 4 (12 months -
April 28, 2010).
The Cerro Gordo-1 well was originally drilled and abandoned by Texaco in
1989. The well was re-initiated (re-entered) by Well Logging Ltda. in the
southern part of the block in June 2007. It was proven productive after a
one-week test. The Cerro Gordo-1 well flow tested a combination of gas and
condensate at Gas: 4.0 MMCF/Day and Condensate: 60 BBL/Day.
The Carbonera Block
The Carbonera Block encompasses 64,000 acres located northeast of Bogota
near the Venezuelan border in the Catatumbo Basin region of northern Colombia.
The initial exploration well, Cerro Gordo-1 well, has tested combination of
gas and condensate (Gas: 4.0 MMCF/Day and Condensate: 60 BBL/Day). The block
hosts a probable reserve of 22 MMBLS.
Catatumbo Basin and Operators
The Catatumbo Basin is a 7350km/sq sub-basin forming the western
extension of the Maracaibo Basin of Venezuela, which has produced billions of
barrels of oil to date with an estimated total of 20 billion barrels remaining
to be produced. In Venezuela this basin has already produced several billion
barrels of oil, and individual producing fields there range in size up to more
than 800 million barrels of oil recovered to date.
Immediately adjacent to the Carbonera Block lie fields such as Tibu,
found in 1940 and with 260 million barrels produced to date, Petrolea,
discovered in 1934 with 38 million barrels produced to date, and Rio Zulia,
dating from 1962 and with 137 million barrels recovered to date.
Solana Resources Limited holds one block in the Catatumbo Basin, and
Ecopetrol with Petrobras holds three licenses in the surrounding area. Solana
Resources Limited says that the preliminary test results for the Tres Curvas-1
wildcat exploration well yielded a combined 180 barrels of oil per day (bopd)
from 61 feet of perforations in two Catatumbo formation zones. With the
application of appropriate artificial lift it is expected that rates will meet
or exceed original expectations of 300 bopd.
Fred B. Zaziski, Chairman of PetroSouth Energy, states: "With this latest
acquisition, PetroSouth currently has participation stakes in three separate
Colombian blocks representing 197,333 acres and potential reserves of 244
million barrels of oil (MMBO) cumulatively."
Juan Carlos Robles, President and CEO of PetroSouth Energy, commented,
"We are delighted to participate in the Carbonera Block, which will now add at
least another three (3) exploration wells over the next few years to our
existing drilling program. We believe that obtaining access to high-quality
prospects is the most effective way to acquire new potential reserves and
enhance Shareholder value."
Shareholders and prospective investors are encouraged to visit PetroSouth
Energy's website: www.petrosouthcorp.com and download PetroSouth Energy's
Investor Summary. Please feel free to call investor relations toll-free at
1-888-977-6884 to receive a full corporate investor's package.
About PetroSouth Energy Corp.
PetroSouth Energy Corp. is a publicly traded independent oil and gas
exploration company with headquarters in Houston, Texas, and an operation base
in Bogota, Colombia. PetroSouth Energy aims to secure and develop a portfolio
of oil and gas properties in Colombia, South America. The Company is involved
in over 197,333 acres of prime oil and gas land holdings. PetroSouth Energy
trades on the NASD OTC BB under the ticker symbol: PSEG - "PetroSouth Energy -
High Impact Colombian Energy Exploration".
On behalf of the Board
Fred B. Zaziski, Chairman
Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties. Words
such as "expects", "intends", "plans", "may", "could", "should",
"anticipates", "likely", "believes" and words of similar import also identify
forward-looking statements. Forward-looking statements are based on current
facts and analyses and other information that are based on forecasts of future
results, estimates of amounts not yet determined and assumptions of
management, including, but not limited to, the Company's belief that
PetroSouth Energy can identify and successfully negotiate leases for oil and
gas properties in Colombia and that the Company can participate in the
exploration of those properties. Actual results may differ materially from
those currently anticipated due to a number of factors beyond the reasonable
control of the Company. Additional information on risks and other factors that
may affect the business and financial results of the Company can be found in
filings of the Company with the U.S. Securities and Exchange Commission.
For further information:
For further information: PetroSouth Energy Corp. Chairman Fred B.
Zaziski, 888-977-6884 firstname.lastname@example.org http://www.petrosouthcorp.com