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THE WOODLANDS, TX, Jan. 18, 2012 /CNW/ - Porto Energy Corp. ("Porto" or the "Company"), today announced results from the drilling of the SPC-2 well in the
Torres Vedras concession onshore Portugal, the second well in the
Company's program to explore the Jurassic Reef prospect. The SPC-2 was
spud on August 19, 2011 and reached total measured depth at 1,957
meters on September 9, 2011. The SPC-2 targeted a well defined four way
closure trap in the Jurassic Reef as delineated by the Company's 120 km2 3D seismic survey of this area.The well had live and dead oil shows
while drilling and good reservoir properties in several limestone and
dolomite intervals. A porous interval of dolomite from 1,625 meters to
1,679 meters indicated pay on a petrophysical evaluation of the open
hole logs, however, analysis of sidewall cores taken over the interval
and additional log evaluation was required to determine if the logged
pay over this interval was commercial. Following completion of the
analysis of the gathered data the Company determined that the well was
gas charged but the presence of a significant amount of carbon dioxide
would make it uneconomic to produce. On that basis, the Company has
elected to plug and abandon the well.
"Although disappointing, we have learned a lot about the hydrocarbon
potential of this play on the western side of the basin. Moreover,
following this result, our decision to suspend drilling pending the
analysis of the sidewall cores was the right one given this outcome,"
said Joseph Ash, President and CEO of Porto Energy. "Following this
result we now expect to take some time to evaluate the wide array of
information gathered on this prospect before making a decision with
respect to next steps of our reef exploration program on the western
portion of the Torres Vedras concession."
About Porto Energy Corp.
Porto Energy Corp. is an international oil and gas company engaged in
the exploration of crude oil and natural gas in Portugal, including the
appraisal of a gas discovery. Through its wholly owned subsidiary,
Mohave Oil And Gas Corporation (a Texas corporation with branch offices
in Portugal), the Company holds working interests in five concessions
in Portugal's Lusitanian Basin totaling 1,444,152 net acres or 5,844 km2. Through its exploration efforts to date, the Company has identified
seven major exploration trends over its concessions including
unconventional oil and gas resource plays as well as conventional oil
and gas targets. Porto Energy's shares trade on the TSX Venture
Exchange under the ticker symbol "PEC". For more information on Porto
Energy visit www.portoenergy.com.
This press release contains certain forward-looking statements. These
statements relate to future events or the Company's future
performance. All statements other than statements of historical fact
are forward-looking statements. The use of any of the words
"anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "should", "believe", "predict" and "potential" and similar
expressions are intended to identify forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon. These
forward-looking statements are made as of the date of this press
release and the Company does not undertake to update any
forward-looking statements that are contained in this press release,
except in accordance with applicable securities laws.
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 release.
SOURCE Porto Energy Corp.
For further information:
Heath Cleaver - Chief Financial Officer