TORONTO, Feb. 15, 2012 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) announced today the discovery of natural gas and condensate in the Cotorra-1X exploration well, drilled on the Guama Block in the Lower Magdalena basin. The Company has 100% working interest in the block and is the operator.
Ronald Pantin, Chief Executive Officer of the Company commented: "this is an important exploration discovery for Pacific Rubiales and demonstrates the potential of both the Guama block and Lower Magdalena basin where the Company has a large exploration acreage position and is looking to increase its gas reserves to support its initiative to develop an LNG export market in the future".
The Cotorra-1X well was drilled as an exploratory well after an earlier exploration success on the block, the Pedernalito-1X well drilled in 2010. The well targeted Porquero Medio sands and silts of Miocene age, a low-permeability play successfully tested by Pedernalito-1X. Cotorra-1X was drilled to a total depth of 7210 feet in mid-January. The petrophysical evaluation showed a total of 40 feet of net pay, with average 20% porosity.
The well was perforated only in the deeper pay zone, across two intervals; leaving overlying pay zones untested for further evaluation.
After clean-up while flowing through a 1/2" choke, Cotorra-1X reached a maximum gas flow rate of 7.5 MMcf/d and 370 bbl/d 56°API condensate, followed by a three-stage isochronal and one extended flow test through 12/64" choke which flowed at 2.6 MMcf/d and 121 bbl/d condensate at 3137 psi well head pressure.
During the month, the Company also completed drilling the Apamate-2X exploration well on its 100 percent owned and operated La Creciente Block. The well failed to test hydrocarbon flow at economic rates and was plugged and abandoned.
Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company, and 100 percent of Pacific Stratus Energy Corp. which operates the La Creciente natural gas field. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has working interests in 46 blocks in Colombia, Peru and Guatemala.
The Company's common shares trade on the Toronto Stock Exchange, La Bolsa de Valores de Colombia and Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC and PREB, respectively.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the company based on information currently available to the company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia, Guatemala or Peru; changes to regulations affecting the company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the company's annual information form dated March 11, 2011 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
In addition, reported production levels may not be reflective of sustainable production rates and future production rates may differ materially from the production rates reflected in this press release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons.
For further information:
Christopher (Chris) LeGallais
Sr. Vice President, Investor Relations
+1 (647) 295-3700
Ms. Carolina Escobar V
Corporate Manager Investor Relations
+57 (1) 628-3970