CALGARY, Sept. 17, 2012 /CNW/ - Petroamerica Oil Corp. (TSXV: PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to announce that following initial flow testing, its Las Maracas-4 well (the "well") drilled on the Los Ocarros Block in the Llanos Basin of Colombia, is now producing at a rate of approximately 1,500 barrels of oil per day ("bopd") with an electro-submersible pump ("ESP") from the Gacheta Formation. The well flow rate is currently restricted and it is anticipated that this oil rate will increase from 1,500 bopd to 2,000 bopd a week from now once access road and site congestion problems have been eased. These problems are a direct result of the arrival of the Tuscany 109 rig in anticipation of future development drilling and the removal of the work over rig used to complete and test the well, thereby limiting truck access for crude oil transportation.
It was announced on August 16, 2012, that after reaching its total depth and encountering oil pay in the Mirador and Gacheta Formations, as determined from electrical logs, the well was to be cased and tested using a work over rig. Upon testing the well flowed naturally for a period of 88 hours from a 12-foot perforated interval in the Gacheta Formation. During this test, the well produced light oil (30 degree API) at an average oil rate of approximately 1,400 bopd, with short-term peaks reaching more than 1,600 bopd. Following this flow test, the well was completed with an ESP and is now producing at restricted rates of approximately 1,500 bopd with minimal water (2.3% water cut) through a choke size of 23/64 of an inch and a minimum pump frequency of 28 hertz.
With the addition of the restricted production coming from the Las Maracas-4 well, the Las Maracas field is now producing at more than 4,600 bopd with minimal water through the long-term test facility; the Las Maracas-2 sidetrack well continues to produce at rates of approximately 1,150 bopd from the Mirador Formation, and the Las Maracas-3 and Las Maracas-4 wells, are producing approximately 2,000 bopd and 1,500 bopd, respectively, from the Gacheta Formation.
At September 17, 2012, the Company's total working interest production was 2,498 bopd (2,298 bopd net after royalties).
The Tuscany 119 rig used to drill the Las Maracas-4 well is currently drilling the La Casona-1 exploration well on the El Eden Block. The Tuscany 109 rig is currently being mobilized in order to drill the Las Maracas-5 and Las Maracas-6 wells, plus a water disposal well that is contingent to the results of the Las Maracas 5 and 6 wells. It is expected that the Las Maracas-5 well will be spud sometime during the first week of October 2012.
Petroamerica holds a 50% participating interest in the Los Ocarros Block. The operator of the block, Cepcolsa, has transferred its 50% participating interest to Parex Resources Colombia Ltd. Sucursal, which is still pending approval by the ANH (Colombian National Hydrocarbon Agency).
Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica has production coming from two oil discoveries and has interests in seven exploration 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 identified, including with respect to the expected drilling activities and spud dates on the wells identified in the press release and the expected timing of and expected flow rates from the Las Maracas-4 well. 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 Las Maracas-4 well, including 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 obtained from the Las Maracas-4 well 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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