CALGARY, Nov. 6, 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 the commencement of drilling operations on two of its exploration properties in the Llanos Basin of Colombia.
The Zampoña-1 exploration well was spud on October 28, 2014 and is targeting Mirador, Gacheta and Une formations on the next fault trend to the east of the currently producing Las Maracas Field. The well is expected reach a total depth of approximately 12,700 feet (measured depth). Zampoña-1 is situated on the Los Ocarros Block where Petroamerica holds a 50% working interest ("WI").
The Langur-1x exploration well was spud on November 4, 2014 and is targeting Mirador, Gacheta and Une formations in a highly prospective low-side fault closure. The well is expected reach a total depth of approximately 13,800 feet (measured depth). The Langur-1x well is situated in the Llanos-19 block, where Petroamerica holds a 50% participating interest, subject to ANH (National Hydrocarbon Agency) approval, and the Company will pay 100% of the drilling costs up to a cap of US $17 million.
Results for both of these wells are expected before year-end.
Petroamerica is also pleased to announce that it has reached an agreement with Petromont Colombia S.A. Sucursal Colombia ("Petromont") to acquire an additional 5.5% working interest from Petromont on the Llanos-10 Block for a total consideration of US $850,000. Under this agreement Petroamerica, along with Parex Resources Colombia Ltd. Sucursal ("Parex"), the other partner on the block, will each assume an equal share of Petromont's 11% WI and Parex will assume operatorship of the block. With the completion of this agreement, Petroamerica and Parex now each hold a 50% WI in the Llanos-10 Block, subject to ANH approval.
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".
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.
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