CALGARY, May 3, 2012 /CNW/ - Petroamerica Oil Corp. (TSXV: PTA) ("Petroamerica" or the "Company"), a junior oil and gas company with activities in Colombia, today announced that the Las Maracas-2 sidetrack well has commenced oil production. The well is currently producing under short-term test prior to the commissioning of the Long-Term Test Facility, which is expected for 15 May 2012. The well is producing by electro-submersible pump, at a constant rate of slightly more than 1,000 barrels of oil per day ("bopd") with a varying water cut of between 1% and 4%, that appears to be related to the well bore clean-up. Due to the limited storage capacity of the short-term test facility, the well flow rate is currently restricted and producing with a minimum pump frequency of 30 Hertz. Once the Long-Term Test Facility is in place, the plan is to progressively increase the daily production rate up to between 1,500 and 2,000 bopd, depending on the observed well performance and reservoir behavior. The Las Maracas-2 sidetrack light oil (37o API) discovery was announced in August 2011 and is located on the Los Ocarros Block in the Llanos Basin, onshore Colombia.
"This is a huge milestone for Petroamerica" said Ralph Gillcrist, Executive Vice President of Exploration and Business Development for Petroamerica. "This test allows us to properly appraise the Las Maracas discovery ahead of establishing the full development plan as well as generating important cash inflows for the Company."
Petroamerica and its partner, Parex Resources Colombia Ltd. Sucursal ("Parex"), each hold a 50% participating interest in the Block, with the Parex interest still to be approved by the ANH ("Colombian National Hydrocarbon Agency").
Petroamerica Oil Corp. is a junior oil and gas exploration and development company operating in Colombia. Petroamerica has interests in eight blocks, comprising a total of 1.8 million gross acres. The Company's Balay and Las Maracas oil discoveries are located in Colombia's Llanos Basin, on the Balay and Los Ocarros Blocks, respectively. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
This news release includes information that constitutes "forward-looking information" or "forward-looking statements". The forward-looking statements contained in this document, including expectations and assumptions concerning expectations regarding the testing of the Las Maracas well, the timing of the Long-Term Test Facility and its expectations regarding the results of the operations thereof, in addition to the potential exploration and development opportunities associated with such well. 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 do 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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