CALGARY, Dec. 3, 2012 /CNW/ - Petroamerica Oil Corp. (TSXV: PTA) ("Petroamerica" or the "Company") is pleased to announce that gross production at its Las Maracas field reached 6,850 barrels of oil per day ("bopd") and a field water cut of 2.14%, with the recent addition of production from the Las Maracas-5 well. The Las Maracas field is located in the Los Ocarros block where Petroamerica holds a 50% working interest.
The Las Maracas-5 well was placed on production on November 22, 2012, and is producing 30 degree API oil from the middle Gacheta sand at a rate of approximately 1,750 bopd with 0.55% water cut under natural flow conditions through a 30/64 inch choke. Additionally, the Company's Las Maracas-6 well has reached a total depth of 12,870 feet measured depth ("MD") and will be logged and cased for testing.
The Balay-4 well, where the Company holds a 15% working interest, was drilling at a depth of 13,663 feet MD in the Mirador formation. The total depth planned for this well is 14,987 feet MD.
As of December 2, 2012 the Company's total working interest production was 3,546 bopd or 3,255 bopd net after royalty.
The Company is also pleased to announce that all of the resolutions put forth at its Annual General and Special Meeting of Shareholders held on November 28, 2012 have been approved. In addition to the standard annual shareholder resolutions which include the approval of Petroamerica's rolling stock option plan and the reappointment of Deloitte & Touche LLP, Chartered Accountants as auditors for the coming year.
The number of directors was set at five, and the election of the Company's Board of Directors was passed:
- Michael Beckett - Director of the Company since October 2009. Also director of Endeavour Mining Corporation since 2002 (and Chairman since 2008).
- Jeffrey S. Boyce - Executive Chairman of the Board since January 2011, and Director of the Company since October 2009. Also Chairman and Chief Executive Officer of Sure Energy Inc. since 2006.
- Augusto Lopez - Director of the Company since October 2009. Also Director of Pacific Rubiales Energy Corp. since 2008.
- Nelson Navarrete - Director of the Company since June 2011; President and Chief Executive Officer of the Company since January 2011.
- John Zaozirny - Director of the Company since October 2009. Also Vice Chairman of Canaccord Capital Corporation since 1986, a Director of Pengrowth Energy Corporation since 1987 (and Chairman since 2009) and a Director of a number of other public companies including Canadian Oil Sands, Coastal Energy, Computer Modelling Group and Bankers Petroleum.
Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica has production coming from two oil discoveries, one discovery to be appraised and developed, and has interests in a total of seven exploration blocks, all located in Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
This news release includes forward-looking statements related to the expected occurrences in relation to the properties identified including expectations regarding the results and timing of drilling test wells. A multitude of factors can cause actual events to differ significantly from any anticipated development and although Petroamerica believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized. These forward looking statements are based upon assumptions that Petroamerica has made concerning the oil and gas industry in Colombia, the reliability of available data regarding the properties, and the continuing market for oil and gas. Risk factors may include the uncertainty of conducting operations under a foreign regime, the availability of labour and equipment, the fluctuating price of oil and gas, and Petroamerica's dependence upon other participants in the property areas. Neither Petroamerica nor any of its subsidiaries nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors, nor do any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
Although the Company believes that the expectations represented by the forward-looking statements contained herein are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Data obtained from the initial testing results at the referenced wells, which may include barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The test results disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.
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.
For further information:
President and CEO
Executive Vice President Exploration & Business Development