TORONTO, May 13, 2013 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) provided today an update on the oil discovery
in the Bilby-1 exploration well, drilling on block S-M-1166, in the
Santos Basin, offshore Brazil.
The Bilby-1 well was drilled as part of an agreement announced by the
Company on September 18, 2012, as a minimum work commitment for five
offshore blocks (S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166),
where the Company holds a 35% participating interest (subject to
approval by Brazil's Agência Nacional do Petróleo, Gás Natural e
As announced in an update by the operator of the blocks, Karoon Gas
Australia Ltd. (ASX: KAR) (see www.karoongas.com.au), the potential size of the earlier announced oil discovery in the
Bilby-1 well has been expanded, with a proven oil column of 320 metres
(1,050 feet), confirmed by wireline pressure data and sampling of oil
from the identified reservoir interval. One of seven oil samples
recovered indicates the presence of 33° API quality oil in the
The net oil bearing reservoir based on petrophysical logs is estimated
to be 70 metres (230 feet) with porosities up to 23%. The confirmed
stratigraphic extent of the oil bearing reservoirs now includes
interbedded sands in the Eocene, Paleocene and Maastrichtian (Late
Cretaceous) age rocks.
The Bilby-1 well is positioned approximately 150 metres (492 feet) down
dip from the trap crest as indicated on seismic data, creating
potential for additional prospectivity higher in the structure.
Ronald Pantin, Chief Executive Officer of Pacific Rubiales commented:
"Although we are in early exploration stages in Brazil, we are pleased
with the results to date and our partnership with Karoon. Further
appraisal wells will be required, but it is encouraging to have
discovered oil trapped in two separate structures, in the earlier
drilled Kangaroo-1 well and now in the Bilby-1 exploration well."
With the wireline testing of the discovery now completed the well will
continue drilling ahead as planned to an expected measured depth of
4,573 metres (approximately 15,000 feet), to test additional targets in
the deeper Santonian (Cretaceous) interval.
Pacific Rubiales, a Canadian company and producer of natural gas and
crude oil, owns 100% of Meta Petroleum Corp., which operates the
Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and
100% of Pacific Stratus Energy Colombia Corp., which operates the La
Creciente natural gas field in the northwestern area of Colombia.
Pacific Rubiales has also acquired 100% of PetroMagdalena Energy Corp.,
which owns light oil assets in Colombia, and 100% of C&C Energia Ltd.,
which owns light oil assets in the Llanos Basin. In addition, the
Company has a diversified portfolio of assets beyond Colombia, which
includes producing and exploration assets in Peru, Guatemala, Brazil,
Guyana and Papua New Guinea.
The Company's common shares trade on the Toronto Stock Exchange and La
Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on
Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker
symbols PRE, PREC, and PREB, respectively.
Cautionary Note Concerning Forward-Looking Statements
This news 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, Guatemala 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
March 14, 2012 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.
In addition, reported production levels may not be reflective of
sustainable production rates and future production rates may differ
materially from the production rates reflected in this news release due
to, among other factors, difficulties or interruptions encountered
during the production of hydrocarbons.
This news release was prepared in the English language and subsequently
translated into Spanish and Portuguese. In the case of any differences
between the English version and its translated counterparts, the
English document should be treated as the governing version.
SOURCE: Pacific Rubiales Energy Corp.
For further information:
Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700
Sr. Manager, Investor Relations
+57 (1) 511-2298
Manager, Investor Relations
+57 (1) 511-2319