CALGARY, Dec. 11, 2013 /CNW/ - Petroamerica Oil Corp. (TSX-V:PTA) ("Petroamerica" or the "Company"), a Canadian oil and gas company operating in Colombia is pleased to announce the start-up of production at its La Casona discovery and that the Rumi-1 exploration well is being cased for testing.
La Casona Discovery, El Eden Block (40% Working Interest)
The La Casona long-term test facility commenced production operations on December 2, 2013, with La Casona-1 producing at restricted rates of approximately 350 barrels of oil per day ("bopd") and 1.5 million cubic feet per day ("MMCFD") of gas from the Une Formation. The produced gas is being compressed and sold and the rate will be restricted until trucking at the gas compression plant has been optimized.
The La Casona-2 appraisal well was drilled 600 meters away from La Casona-1, and is about to commence testing of the Mirador Formation, which was untested in the La Casona-1 well, using a service rig that was on location as of December 10, 2013. It is expected that test results will be available before year-end.
Rumi-1 Exploration Well, El Eden Block (40% Working Interest)
The Rumi-1 exploration well, which was spud on November 16, 2013, has reached its target depth of 14,620 feet and is being cased for testing. Wire-line logs indicate the presence of a gross hydrocarbon column of approximately 60 feet in the Une Formation of which 27 feet is interpreted to be net oil pay. Testing will be performed using the drilling rig so that results should be available before year-end.
Petroamerica Oil Corp. is a Canadian oil and gas exploration and production company with activities in Colombia. Petroamerica produces more than 6,000 bopd from two oil fields, is appraising two new discoveries and has interests in five blocks, all located in Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
This news release includes forward-looking statements related to the expected occurrences in relation to the properties and drilling activities identified and the anticipated timing of well results. A multitude of factors can cause actual events to differ significantly from any anticipated development and although Petroamerica believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized. These forward looking statements are based upon assumptions that Petroamerica has made concerning the oil and gas industry in Colombia, the reliability of available data regarding the properties, and the continuing market for oil and gas. Risk factors may include the uncertainty of conducting operations under a foreign regime, the availability of labour and equipment, the fluctuating price of oil and gas, and Petroamerica's dependence upon other participants in the property areas. Neither Petroamerica nor any of its subsidiaries nor any of its officers 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.
Although the Company believes that the expectations represented by the forward-looking statements contained herein 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. 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.
Data obtained from the initial testing results at the wells identified in this press release, including barrels of oil and cubic feet of gas produced and net feet of oil pay, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The well test results obtained and 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.
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.
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