CALGARY, June 5, 2012 /CNW/ - ArPetrol Ltd. ("ArPetrol" or the "Company") (TSXV: RPT) is pleased to provide an operational update on activities related to the upcoming drilling on the Faro Virgenes concession.
ArPetrol is in the final stages of preparation for the drilling of its long reach well program in the Faro Virgenes field. This program is a continuation of the Company's Argentina investment strategy. The final rig preparations in the yard have been substantially completed and mobilization is expected to commence shortly. The first well is expected to spud during the week of June 25th and to take 45-50 days to drill and complete. Production from the well which, with success, is expected to exceed 6 million cubic feet per day, will be tied into ArPetrol's 100 percent owned gas plant. Subject to achieving successful results from the first well and obtaining additional financing, ArPetrol would expect to drill a second well.
So far ArPetrol has spent approximately $1.5 Million on engineering and project management in preparation of drilling, approximately $2.0 Million to prepare the rig and a three well drilling pad and mobilization to site is expected to cost approximately $3.4 Million. Operating spreadrates are expected to be approximately $150,000 per day. Completion and testing is expected to cost approximately $1.1 Million. Estimated well costs range between $16 and $18 Million for each well, based on a two well program.
All values in this news release are in Canadian dollars unless otherwise indicated.
About ArPetrol Ltd.
ArPetrol is a Calgary-based publicly traded company currently engaged in oil and natural gas exploration, development and production and third-party natural gas processing in Argentina where it also owns and operates a gas processing facility with capacity of 85 million cubic feet (MMcf) per day.
The Company is the resulting entity from the business combination of the Company (formerly RPT Resources Ltd. ("RPT") and ArPetrol Inc. (now ArPetrol Holdings Inc., a wholly owned subsidiary of the Company) completed in the first quarter of 2011. The Company's common shares are listed on the TSXV under the symbol "RPT".
This news release contains certain forward‐looking statements relating, but not limited, to operational information, targeted production rates, expected capital expenditures, drilling plans and the timing associated therewith, successful well results and availability of future financing. Forward‐looking information typically contains statements with words such as "anticipate", "target", "estimate", "expect", "potential", "could", "should", or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities not to place undue reliance on forward‐looking information as, by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company.
Forward‐looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to risks associated with the oil and natural gas industry (e.g., operational risks in exploration and drilling; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; the ability to obtain and retain staff and equipment in a timely and cost efficient manner; the uncertainty of estimates and projections in relation to costs and expenses; and health, safety and environmental risks), access to funding, weather delays and natural disasters, union activities, change in government policies, the risk of commodity price and foreign exchange rate fluctuations, and risks associated with international activity.
ArPetrol operates outside of Canada and as such, ArPetrol is subject to a number of political risks over which it has no control. These risks may include risks related to economic, social or political instability or change, the uncertainty of negotiating with foreign governments, expropriation and/or nationalization, changes in export or exchange policies, adverse determinations or rulings by governmental authorities, changes in energy policies or in the personnel administering them and currency and inflation risks. See the "Risk Factors" section of the Company's AIF for a further description of these risks and uncertainties facing ArPetrol.
The forward‐looking information included herein is expressly qualified in its entirety by this cautionary statement. The forward‐looking information included herein is made as of the date hereof and the Company assumes no obligation to update or revise any forward‐looking information to reflect new events or circumstances, except as required by law.
Additional information relating to the Company is also available on SEDAR at www.sedar.com.
Neither the TSXV nor its Regulation Services Provider (as defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Tim Thomas, President and Chief Executive Officer
Ian Habke, Chief Financial Officer
Main Phone: 403-263-6738