CALGARY, Dec. 9, 2014 /CNW/ - Petroamerica Oil Corp. (TSX-V:PTA) ("Petroamerica" or the "Company"), a Canadian oil and gas company operating in Colombia is pleased to announce that it has cased the Langur-1X exploration well with the objective of testing. The Langur-1X well is targeting a low-side fault closure prospect in the LLA19 Block, in the Llanos basin of Colombia.
The Langur-1X exploration well reached a total depth ("TD") of approximately 13,700 feet (measured depth) and based on encouraging oil shows and electrical logs obtained while drilling, the decision was made to case the well for testing. The electrical logs indicate approximately 15 feet of net oil pay (true vertical depth) over a gross interval of approximately 38 feet in the Gacheta C sands, with no oil-water contact. The Gacheta C Formation is one of the main producing reservoirs in Petroamerica's Las Maracas Field situated in the adjacent Los Ocarros Block. The sand thicknesses and reservoir properties of the Gacheta C Formation encountered in the Langur-1X well appear to be broadly similar to those existing at the Las Maracas Field.
The Company's preliminary estimate of the cost to drill the Langur-1X well to TD is approximately US$5.5 million, with the final cost still to be verified. The Company holds a 50% working interest in the LLA19 Block subject to earning and ANH (National Hydrocarbon Agency) approval. To earn this working interest, the Company will pay 100% of the cost to drill, test and complete or abandon the Langur-1X well.
Petroamerica Oil Corp. is a Canadian oil and gas exploration and production company with interests in twelve blocks, located in Colombia's Llanos and Putumayo Basins. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
Data obtained from the initial testing results at the referenced wells, which may include barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The test results disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.
Readers should also note that even if the drilling program as proposed by the Company is successful, there are many factors that could result in production levels being less than anticipated or targeted, including without limitation, greater than anticipated declines in existing production due to poor reservoir performance, mechanical failures or inability to access production facilities, among other factors.
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.
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.
SOURCE: Petroamerica Oil Corp.
For further information: Nelson Navarrete, President and CEO; Colin Wagner, CFO; Ralph Gillcrist, COO, Executive Vice President; Tel Bogota, Colombia: +57-1-744-0644; Tel Calgary, Canada: +1-403-237-8300; Email: [email protected], Web Page: www.PetroamericaOilCorp.com