CALGARY, May 4, 2012 /CNW/ - P1 Energy Corp. ("P1" or the "Company"), a company focused on oil exploration and production exclusively in Colombia, is pleased to announce that it has made an oil discovery on the operated Llanos 32 Block ("LLA-32"). P1 holds a 50% working interest which we anticipate becoming a 40% working interest pending the submission and approval of an assignment of a 10% interest to a 3rd party.
The Maniceño-1 well was spud on March 2, 2012 and after a side track of the original wellbore, reached total measured depth of 11,027 feet on April 18, 2012. The well targeted the Mirador and Une formations. Log interpretations in the Mirador indicate net pay of more than 50 feet. The top 14 feet (10,750' - 10,764') of the indicated pay in the Mirador was perforated and production tested on jet pump at an average rate of 7,280 barrels of oil per day of approximately 25 degree API crude oil and less than 5% basic sediment and water ("BS&W") over a four hour period. The maximum flow obtained from the well during the jet pump test was 9,512 barrels of oil per day over a one hour period during the four hour period. The well also flowed naturally at an average rate approximately of 3,036 barrels oil per day over a 6 hour period with downhole restrictions due to the jet pump assembly. Initial test rates are not necessarily indicative of long-term production rates. P1 plans to install a high volume electric submersible pump ("ESP") in the well before releasing the drilling rig to drill the next well on the Block. The Maniceño-1 well was the first of two commitment exploratory wells on the Block.
After release from the Maniceño-1 well, the drilling rig will move to the second commitment exploratory well on the Block called Samaria Norte-1. Samaria Norte-1 is expected to spud in the second half of May 2012 and is targeting the Mirador and Une formations.
About P1 Energy Corp.
P1 Energy Corp. is an exclusively Colombia focused oil and gas exploration and production company headquartered in Calgary, Alberta. P1 Energy holds a variety of interests in producing and exploration blocks in Colombia. P1 is operating and participating in an active exploratory drilling campaign in Colombia and will update its shareholders on the results of this campaign as material information becomes available.
This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the Company's plan to install a high volume submersible pump at the Maniceño-1 well, (ii) the movement of the Company's drilling rig to another exploratory well on the LLA-32 Block, and (iii) the expected spud date and targeted formations of the Samaria Norte-1 exploratory well.
The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning: (i) the success of future drilling and development activities, (ii) the performance of existing wells, (iii) the performance of new wells, (iv) the availability and performance of facilities, (v) the geological characteristics of the Company's properties, (vi) the successful application of drilling, completion and seismic technology, (vii) prevailing weather conditions, commodity prices, royalty regimes and exchange rates, (viii) the application of regulatory, governmental and licensing requirements, and (ix) the availability of capital, labour and services.
Although the Company 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 the Company 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (which include operational risks in development, exploration and production; risk that there will be delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to production, costs and expenses; the uncertainty of well performance; and health, safety and environmental risks), uncertainty as to weather conditions, uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations and changes to existing laws and regulations. These and other risks are set out in more detail in the Company's management's discussion and analysis for its most recent financial period, which has been provided to the shareholders.
The forward-looking statements contained in this press release 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.
For further information:
Chief Financial Officer
P1 Energy Corp.