CALGARY, Jan. 12, 2015 /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 testing operations have established a stabilized test rate of 760 barrels of oil per day ("bopd") from the Langur-1X exploration well on the LLA19 Block in the Llanos Basin of Colombia.
After being drilled to 13,717 feet TD, the Langur-1X exploration well was cased to evaluate 14.5 feet of Gacheta C oil pay. Two intervals were perforated and the well was tested for fifteen days under flow-assistance by coiled tubing and nitrogen, establishing a stabilized flow rate over the last 24 hours of 760 bopd of 24° API oil (380 bopd net to the Company before royalty) with a 27% watercut. The watercut was steadily decreasing for the duration of the test from approximately 50% at the beginning of the test, to 26% at the time the well was shut-in. This watercut behaviour is not typical of water break-through from an active aquifer and the produced water is not interpreted to be coming from a nearby oil-water contact. The well has been equipped with an electric submersible pump and is expected to produce at rates in excess of 1,000 bopd during an extended production test. Operator Pacific Stratus Energy Colombia Corp. (50% working interest ("WI")) and Petroamerica (50% WI subject to ANH - National Hydrocarbon Agency) are currently assessing potential follow-up drilling locations to the Langur-1X discovery well.
Ralph Gillcrist, President and CEO commented, "The Langur-1X oil discovery is very encouraging as it opens up a new play fairway in this part of the Llanos Basin for trapping light oil in low-side fault closures in the prolific Gacheta C reservoir. Our expectation is that future oil produced from the Langur-1X discovery has the potential to deliver some of our highest netbacks and will be in high demand as a diluent in this part of the Llanos Basin".
The Company holds a 50% WI in the LLA19 Block subject to earning and ANH approval. To earn this working interest, the Company will pay 100% of the cost to drill, test and complete 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 well, 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.
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: Colin Wagner, CFO, Tel Calgary, Canada: +1-403-237-8300, Email: [email protected], Web Page: www.PetroamericaOilCorp.com