CALGARY, July 30, 2012 /CNW/ - Petroamerica Oil Corp. (TSX-V:PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to announce the results of its Las Maracas-3 well (the "well") drilled on the Los Ocarros Block in the Llanos Basin of Colombia. The well has successfully appraised the Las Maracas Mirador Formation oil discovery and additionally, produced light oil from a new deeper reservoir, the Gacheta Formation, at rates of 1,491 barrels of oil per day ("bopd").
The well commenced drilling on June 28, 2012 and reached a total depth of 12,580 feet (measured depth) on July 13, 2012, following which it was logged and cased for testing. Based on a petrophysical evaluation of the wireline logs, the well encountered a total net oil pay of 59 feet (true vertical depth or "TVD"). Of this total amount, 30 feet (TVD) are in the Mirador Formation and 29 feet (TVD) in the deeper Gacheta Formation. In the Mirador Formation the well encountered similar reservoir properties and oil saturations to those found in the Las Maracas-2 sidetrack discovery well. The deeper Gacheta reservoir has excellent petrophysical characteristics with the logs indicating an average porosity of 24% and an average oil saturation of 72% over the net pay interval. Additionally, as a possible upside, potential thin-bed pay is identified in the Une, Gacheta and Carbonera C7 Formations and good oil and gas shows were encountered drilling through the Une reservoir. This upside potential will be evaluated in future wells.
Testing was carried out with the drilling rig and focused on realizing production from the new Gacheta reservoir. The flow test was conducted over an 18-hour period using two different choke-sizes of 32/64th and 28/64th of an inch. The Gacheta interval produced light oil (30 degree API) under natural flow from a 14-foot perforated interval, at a stabilized rate at the end of the test of 1,491 bopd with a 1.0% water-cut. The average oil rate over the 13-hour flow period following fluid unloading was 1,434 bopd, with short-term peaks reaching up to 1,723 bopd. Based on these test results, the decision was taken to run an electro-submersible pump and complete this well as a producer. It is planned to produce this Gacheta interval at rates up to 2,000 bopd through the Las Maracas long-term test facility during the first week of August 2012. The Mirador interval will be produced separately at a later date using the same well bore.
The Las Maracas-3 well was drilled according to plan, on time and under budget. It was drilled using the Tuscany 119 rig, which will now be skidded to drill the Las Maracas-4 well from the same surface location.
The Las Maracas-2 sidetrack discovery well has been producing from the Mirador Formation under long-term test since April 23, 2012, and as of July 29, 2012 had produced more than 102,000 barrels of oil. The well is currently choked back and is producing at a stabilized flow rate of 1,080 bopd with less than 2% water-cut.
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).
The Company also announces that as part of its portfolio rationalization in Colombia, it has signed an agreement to divest its 33.3% working interest in the Lower Magdalena Basin Block, SSJN-5 ("Block 5"). Petroamerica has transferred its entire working interest in Block 5 to the Operator of the Block at zero cost and the Operator will return to Petroamerica a letter of credit for the amount of US$3.0 million. As a result of this transfer of interest, Petroamerica has no further interests, liabilities or obligations in respect of Block 5.
On the successful Las Maracas-3 well results, Ralph Gillcrist, Petroamerica's Executive Vice President of Exploration and Business Development comments "We are very pleased with the successful appraisal of the Mirador discovery and the exciting test results coming from the new Gacheta discovery. These results are extremely positive for our financial position moving forward and have the potential to increase the size of the existing accumulation". On the SSJN-5 divestment, the Company's CEO and President, Nelson Navarrete, commented "This is a strategic divestment that reduces the capital risk profile of Petroamerica by protecting its balance sheet, and more importantly, it enables the Company to focus in the near-term on its higher value and less risky Llanos Basin properties".
Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica has interests in seven blocks and two oil discoveries, 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. 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-3 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-3 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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