CALGARY, Jan. 6, 2012 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company") announces preliminary results from the Balay-3 appraisal well that was drilled to evaluate the northern extension of the Balay field in the Balay Block of the Llanos Basin, Colombia.
The Balay-3 well reached a total depth of 14,610 feet Measured Depth ("MD") within the Guadalupe Formation, and the top of the main objective, the Mirador Formation, was encountered deeper than expected. A petrophysical evaluation of the wireline logs indicated 3 feet of net oil pay at the very top of the Mirador Formation. A cased-hole Drill Stem Test ("DST") (13,960 feet to 13,985 feet MD) was run to evaluate this interval and was dry, meaning that no reservoir fluids were recovered due to the low permeability of the reservoir.
A second DST was performed at a lower interval (13,984 feet to 14,000 feet MD), recovering a cumulative volume of 1,200 barrels of formation water. A pressure build-up of this second interval was performed and the producing wells at Balay-1 and Balay-2 were monitored during testing. This data is now being evaluated and should provide invaluable information on reservoir pressure and connectivity between wells. Injectivity tests are currently underway with the objective of converting the Balay-3 well into a water disposal well as part of the Balay field development plan.
Petroamerica Oil Corp., through its wholly owned subsidiary, Petroamerica International Corp., holds a 15% participating interest in the Balay Block.
Petroamerica is a junior oil and gas company operating in Colombia and its shares are listed on the TSX Venture Exchange under the symbol "PTA".
ON BEHALF OF PETROAMERICA OIL CORP.
President and CEO
This news release includes information that constitutes "forward-looking information" or "forward-looking statements". A multitude of factors can cause actual events to differ significantly from any anticipated developments and although the Company believes that the expectations represented by such forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. Material risk factors include, but are not limited to: the risks of the oil and gas industry in general, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable shortages of equipment and/or labour; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and reliance on industry partners.
Neither the Company nor any of its subsidiaries nor any of its officers, directors or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
The forward-looking statements contained in this document 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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