VANCOUVER, April 3, 2018 /CNW/ - In light of the recent negative trading in its shares since its March 28 news release on the Istanbul-1 well, PentaNova Energy Corp. (the "Company") (TSXV: PNO), would like to clarify both the drilling results and the factors surrounding the testing the Istanbul-1 well ("the well").
The well, located in the Maria Conchita block in northern Colombia, commenced drilling on February 27, 2018 and reached a total depth of 8,740 feet measured depth ("MD") on March 21st. When drilling through potential reservoirs of the Jimol formation, the same formation that tested a combined rate of 18 million cubic feet per day of gas in the Aruchara-1 discovery well, gas shows were observed on the mud log.
Open hole logs run between March 21st and March 24th revealed 88.5 feet of low resistivity, potential gas bearing sands with an average porosity of 20.3%. During logging, 32 sidewall core plugs were cut and recovered, the analysis of which supports the interpretation of favourable reservoir properties for the potential gas bearing reservoir intervals identified on logs.
After logging, a 7-inch liner was run to a depth of 8,732 ft MD and cemented. Subsequent cased hole logs acquired on March 30th showed a good quality cement bond across the intervals of interest.
Based on the interpretation of the open hole logs and mud log, 12 separate intervals covering a total thickness of 62.4 feet were selected and perforated for testing.
Currently, a permanent production completion is being run in hole, after which the drilling rig blow-out-preventers will be removed and a production Christmas Tree installed and pressure tested.
Following completion of the well, flow testing of the potential gas bearing perforated intervals will start and will last for three to four days. The testing will consist of a series of flow periods at different rates, punctuated by shut-in periods to measure the pressure response of the well. Towards the end testing, a production log will be run in order to determine the relative contribution of the different perforated intervals to the overall total flow.
Once the testing of the well has been completed, PentaNova will provide a full and comprehensive update on the results of the test.
PentaNova is investing in proven leadership and technology to develop oil and natural gas fields it has acquired in areas surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience in Latin America and global energy development, PentaNova's leadership is working with local partners and service providers, including YPF, Argentina's respected energy producer, to deliver the energy for Latin America's future.
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about the completion of the operations described herein, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms of such transaction.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company's inability to perform the proposed operations.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete the planned operations and activities. The Company has also assumed that no significant events will occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information 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 information, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE PentaNova Energy Corp.
For further information: PentaNova Energy Corp.: Ralph Gillcrist, CEO & President; Chris Reid, CFO, Tel: (604) 609-6110, E-mail: [email protected]