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THE WOODLANDS, TX, May 25, 2011 /CNW/ - Porto Energy Corp., ("Porto" or the "Company"), today announced that it has commenced re-entry operations on the
Alj-4 well on the Aljubarrota-3 onshore concession in central Portugal.
The Alj-4 well was originally drilled in 2005 to a depth of 2,110
meters as a direct offset to the Company's Alj-2 well that discovered
366 BCF of contingent gas resources in a Jurassic fractured Brenha
carbonate formation. The original Alj-4 well was temporarily abandoned
above the gas accumulation due to operational constraints. The Company
intends to deepen the Alj-4 well by 450 meters to approximately 2,550
meters to appraise the gas-bearing reservoir in the Jurassic Brenha
carbonate. Drilling operations, which includes acquisition of 60-70
meters of conventional core, are expected to take approximately one
month. Analysis of the well results is expected to be completed by the
end of August 2011. Total drilling and appraisal costs are estimated at
approximately $4.5 million which includes mobilization of the rig to
the re-entry location.
"We are moving forward with our asset appraisal program ahead of
schedule," said Joseph Ash, President and CEO of Porto Energy. "Our
primary goal for the re-entry and deepening of the Alj-4 well is to
optimize future horizontal well design and commercialize the
Aljubarrota gas discovery. After the re-entry is completed, we intend
to move the rig 70 kilometers south to the Torres Vedras-3 onshore
concession to test multiple Jurassic reef oil prospects defined by our
recently completed 120 km2 3D seismic survey."
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 and generated more
than 45 prospects and leads. 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.
Contingent resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from known accumulations
using established technology or technology under development, but which
are not currently considered to be commercially recoverable because of
one or more contingencies. The contingent resources shown are
contingent upon demonstration of the economic viability of the
projects. Commercial flow rate testing and documentation of
development plans will provide further evidence of economic viability
of these projects. If these contingencies are resolved, some portion
of the contingent resources estimated may be reclassified as reserves.
There is no certainty that it will be commercially viable to produce
any portion of the contingent resources.
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