TORONTO, Feb. 12 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
provided today an update on its continuous appraisal of the crude oil reserves
in the Rubiales Field, as well as announced the awarding of a new exploration
block in Colombia.
Extension of the Rubiales Reservoir
At the Rubiales field in the Llanos Orientales Basin in Colombia, the
company has successfully completed an exploratory well identified as RB-51, on
which it commenced a production test on January 15. The results indicate a
production of 430 barrels of oil per day (bopd), which is an excellent
production rate for a vertical well.
This well was drilled 2.5 kilometres to the southwest of the producing
well RB-31, which was previously thought to be the outermost well on the
western flank of the field. The well is located in the field's safety zone
(the 5 kilometre strip surrounding the contractually assigned area), and the
results confirm the lateral extension of the field. It is expected that these
results, once factored into the reservoir model, will result in the upgrade of
the company's already identified resources.
The test results will be finalized in early April, at which time the
company will be able to request from Ecopetrol the assignment of an additional
commercial area of approximately 35 square kilometres, and will be able to
develop additional production facilities for this portion of the field.
The company achieved a new production record for its Rubiales field on
February 12, 2008 when the company reached the landmark of 10,655 bopd net
(29,050 bopd gross). This steady increase reaffirms the company's push to
reach gross production of 126,000 bopd and its commitment to successfully
develop the field to its full potential.
Award of New Exploratory Block
The company has been awarded the block identified as JAGUEYES 3433-A, in
the Casanare Department, in the furthest north region of Los Llanos
Orientales. This block was offered by the Agencia Nacional de Hidrocarburos in
a bidding process that culminated in the announcement of the successful
bidders on February 8, 2008.
The JAGUEYES 3433-A block, with an area of 21,500 hectares, is surrounded
by producing oil fields and provides easy access.
The company's work commitment for this block consists of 112 square
kilometers of 3D seismic in the first phase (eight months), at an investment
of approximately US$3 million. If exploratory targets are then identified, the
proposal calls for the drilling of three exploratory wells in three different
phases (10, 12 and 12 months respectively), at an investment of US$5 million
for each well.
Pacific Rubiales, a Canadian-based company and producer of natural gas
and heavy crude oil, owns 100 percent of Meta Petroleum Limited, 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.
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 approximately
17,500 barrels of oil equivalent per day, with working interests in the
Rubiales, Piriri and Quifa concessions and the Caguan, Dindal, Rio Seco, Puli
B, La Creciente, Moriche, Guama, Arauca, Tacacho and Jagueyes blocks in
Colombia and blocks 135, 137 and 138 in Peru.
Forward-looking statements: This document contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the Company's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management. For such
statements, we claim the safe harbour for forward-looking statements within
the meaning of the Private Securities Legislation Reform Act of 1995.
For further information:
For further information: Mr. Ronald Pantin, Chief Executive Officer and
Director, (416) 362-7735 or Mr. Jose Francisco Arata, President and Director,