CALGARY, May 9 /CNW/ - Petroamerica Oil Corp. ("the Company") (TSXV:
PTA) is pleased to announce that the Balay-2 ST1 appraisal well flowed
from two perforated intervals in the Upper Mirador, 2,620 barrels of 26
degree API oil per day with 9.3% bulk sediment and water ("BS&W") that
is probably mainly completion fluid, under electro-submersible pump.
The Balay-2 ST1 well also defined a deeper oil-down-to in the Upper
Mirador reservoir. Additionally, 145 barrels of heavy oil (13 degree
API, waiting on laboratory confirmation) and water (10-16% BS&W) was
recovered from the Barco Formation. No hydrocarbons were recovered from
tests carried out in the Une and Gacheta reservoirs.
Nelson Navarrete, President and CEO, commented on the Balay-2 ST1
drilling result, "this is significant in terms of proving up
recoverable oil volumes in the Balay structure, and more importantly,
moving the project one step closer towards a commercial development."
The Balay discovery was announced on March 11, 2010 and the Balay-1
discovery well has been on long-term production test since July 14,
2010, producing more than 285,000 barrels of 28 degree API oil from the
Upper Mirador Formation, with no measurable water (0.22% BS&W). The
forward plan is to put the Balay-2 ST1 well on long-term test together
with the Balay-1 well. A third well, Balay-3, is planned for the fourth
quarter 2011 to appraise the northern extent of the Balay discovery.
Petroamerica Oil Corp., through its wholly owned subsidiary,
Petroamerica International Corp., holds a 15% participating interest in
the Balay block for which it received its approval from the ANH
(Colombian National Hydrocarbon Agency) earlier this year. Petrobras is
the operator with a 45% participating interest and the other partners
are CEPSA COLOMBIA S.A. and Sorgenia, each holding a 30% and 10%
participating interest, respectively.
ON BEHALF OF PETROAMERICA OIL CORP.
President and CEO
This press release contains forward-looking statements. The use of any of the words
"anticipate", "continue", "estimate", "expect", "may", "will",
"project", "should", "believe", "planned" and similar expressions are
intended to identify forward-looking statements.
The forward-looking statements are based on certain key expectations and
assumptions made by Petroamerica, including, but not limited to:
oil and natural gas production levels;
prevailing commodity prices and exchange rates;
availability of labour and drilling equipment;
timing and amount of capital expenditures;
general economic and financial market conditions;
governmental approvals of contracts entered into with industry partners
in relation to properties and operations;
government regulation in the areas of taxation, royalty rates and
production of new and existing wells and the timing of new wells coming
the performance characteristics of oil and natural gas properties;
the size of oil and natural gas reserves or resources;
the ability to raise capital and to continually add to reserves and
resources through exploration and development; and
the success of exploration and development activities.
Although Petroamerica believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward-looking statements because
Petroamerica can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. These statements speak only as of the date of this press
release. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but
are not limited to:
volatility in market prices for oil and natural gas;
volatility in exchange rates;
liabilities inherent in oil and natural gas operations;
changes or fluctuations in production levels;
stock market volatility and market valuation of our stock;
uncertainties associated with estimating oil and natural gas reserves
competition for, among other things, capital, acquisitions of reserves
and resources, undeveloped lands and skilled personnel;
incorrect assessments of the value of acquisitions and exploration and
geological, technical, drilling, production and processing problems;
changes in legislation, including changes in tax laws, royalty rates and
incentive programs relating to the oil and natural gas industry
changes in regulation or policy positions by governments with respect to
the development of oil and gas resources or foreign ownership of
Readers are cautioned that the foregoing lists of factors are not
exhaustive. The forward-looking statements contained in this press
release are expressly qualified by this cautionary statement.
Petroamerica does not undertake any obligation to publicly update or
revise any forward-looking statements other than as required under
applicable securities laws.
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.
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