TORONTO, Dec. 30 /CNW/ - Pacific Rubiales Energy Corp (TSX: PRE; BVC: PREC) announced today an operational update of its drilling campaign in the Rubiales Field and Quifa blocks, both located in the Llanos Basin, Colombia. The update describes the results of (i) three appraisal wells in Rubiales; two wells in prospect "D" (Rub-251 and Rub-266) and one well in prospect "B" (Rub-310) and (ii) two exploratory wells in prospects "B" and "C" in the Quifa block.
The appraisal wells, Rub-251 and Rub-366, were drilled as part of the appraisal campaign on prospect "D" to confirm reservoir extension and production potential of this northern area of the Rubiales Field. The Rub-251 well found the top of the Carbonera basal sands, at 2,913 feet measured depth ("MD"), or 2,271 feet true vertical depth at sub-sea level ("TVDSS"), and the oil-water contact ("OWC") at 2,963 feet MD, or 2,321 feet TVDSS, for a total gross oil column at the well of 50 feet. The Rub-266 well found the top of the Carbonera basal sands, at 2,890 feet MD, or 2,300 feet TVDSS and the OWC at 2,926 feet MD, or 2,336 feet TVDSS, for a total gross oil column at the well of 36 feet.
Petrophysical evaluation of both wells indicates a net pay zone of 31 feet, and porosities of over 30%. These wells were drilled as appraisal wells on prospect "D", at a distance of 6.81 km and 2.61 km, respectively, southeast of the discovery well Rub-147 (Rub-147 well was drilled on October 2008, refer to press release dated October 2, 2008). These wells confirmed the extension of this discovery to the southeast, and its continuation into the Quifa block, which was first evidenced with the Quifa-9 well results (refer to the press release dated September 21, 2009). The company is now planning to test the wells and complete them as vertical hole producers.
The Rub-310 well, drilled on prospect "B", to the eastern part of Rubiales field, found the top of the Carbonera basal sands at 2,552 feet MD, or 1,977 feet TVDSS, and the top of the basement at 2,644 feet MD. This well showed a total thickness of 92 feet and porosities of 29%; however, it was 100% water saturated. The company is now planning to convert it for use as an injector well.
As part of the exploration activity at Quifa block, two exploratory wells were drilled on prospects "B" and "C", located in the least known area of the block at 15 to 18 km northeast from the Rubiales field and on the eastern part of the Quifa block. The Quifa-15 well, drilled on prospect "B", found the top of the Carbonera basal sands at 2,671 feet MD, or 2,064 feet TVDSS and the top of basement at 2,868 feet MD. The Quifa-16 well, on prospect "C", found the top of Carbonera basal sands at 2,564 feet MD, or 2,010 feet TVDSS, and the top of basement at 2,722 feet MD, or 2,168 feet TVDSS. Although both wells showed good reservoir characteristics in the basal sand intervals (159-158 feet thick and 30% average porosity), none of them showed a presence of hydrocarbons in the column. Since both wells were located in the highest part of the structure of the Rubiales-Quifa area, mapped with a regional 6x4 km seismic grid, with no evident structural separation from the Rubiales reservoir, the absence of oil in this area could indicate the existence of a stratigraphic barrier to the west-southwest that separates this area of the Quifa block from the Rubiales field, regulating the hydrocarbon charge to this part of the block. These results, although unsatisfactory, will contribute to the better understanding of the geology on this, the least known and explored region of the block, and will help in focusing the next steps in the exploration campaign in the other prospects on Quifa.
Mr. Ronald Pantin, Chief Executive Officer, commented: "The results of the appraisal wells in Rubiales continue to show the extension of the reservoir into new areas and further supports our development plan for the block. The results of Quifa-15 and 16 are important in that they provide additional information insight into the Rubiales and Quifa area's structural geology."
Before drilling more exploratory wells in this eastern area of the Quifa block, the company will analyze these results and use the information obtained from these wells to prepare a seismic inversion exercise (calibrated with the new wells), to identify the stratigraphic anomaly that did not allow the connection from the Rubiales field towards this zone, and consequently did not permit the migrating oil to reach the area targeted by the Quifa-15 and 16 and wells.
The Quifa-15 and Quifa-16 wells are located in the Quifa Block, in the Llanos Basin of Colombia. The Quifa Block is an Association Contract with Ecopetrol S.A. in which Meta Petroleum Ltd. (a wholly-owned subsidiary of Pacific Rubiales) holds a 60% working interest and Ecopetrol S.A. holds a 40% working interest.
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 Quifa Block in the Llanos Basin in association with Ecopetrol S.A., the Colombian national oil company. 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 a current net production of 49,500 barrels of oil equivalent per day (after royalties), with working interests in 32 blocks in Colombia and Peru.
Information in this press release expressed in barrels of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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 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 April 1, 2009 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.
SOURCE Pacific Rubiales Energy Corp.
For further information: For further information: Mr. Ronald Pantin, Chief Executive Officer and Director, Mr. Jose Francisco Arata, President and Director, (416) 362-7735; Ms. Belinda Labatte, (647) 428-7035