CALGARY, Nov. 13, 2013 /CNW/ - Petroamerica Oil Corp. (TSX-V:PTA) ("Petroamerica" or the "Company"), a Canadian oil company operating in Colombia is pleased to announce a light oil discovery at the La Guira-1 exploration well on the Los Ocarros Block. The Company is also pleased to announce that total Company Working Interest production reached a new high with an average rate of 6,312 barrels of oil per day ("bopd") over the month of October. Operations at the El Eden Block continue to progress, with the La Casona-2 well scheduled to begin testing in the next two weeks, the La Casona-1 well long term test production expected to commence within the next week, and the Rumi-1 exploration well currently drilling at a depth of approximately 5,000 feet.
La Guira Well, Los Ocarros Block (50% Working Interest)
The La Guira-1 exploration well on the La Guira prospect was spud on October 9, 2013 and drilled to a total depth of 12,500 feet. The well encountered 11 feet of net pay in the Mirador Formation, which was flow tested on a fully open choke for a period of 24.5 hours. The well started producing under natural flow at rates of approximately 1,000 bopd of light 37.5 degree API oil with a water cut of 20% during the first hour of testing. As testing continued, the water cut progressively increased to more than 50% and as a result the well ceased flowing naturally. The final water cut measured at the end of the test was 34% and a total of 206 barrels of oil and 162 barrels of water were recovered from the test. Petroamerica plans to produce this using an electro-submersible pump to provide artificial lift, and the well is expected to be tied back via a 7 kilometer flow line to the Las Maracas central production facility. The Gacheta formation was also flow tested and produced non-commercial amounts of hydrocarbons.
Petroamerica interprets the La Guira-1 discovery well as being low in the La Guira structure and plan to drill an up-dip appraisal well, La Guira-2, with the objective of gaining more vertical height above the Mirador oil-water contact and intersecting the Gacheta reservoir within structural closure, as soon as a rig can be secured.
La Casona Discovery, El Eden Block (40% Working Interest)
The La Casona-2 appraisal well has been drilled and a workover rig is being mobilized to test the Mirador Formation, which was untested at La Casona-1. The workover rig is expected to be on location in the next two weeks.
The long-term test production facility for the La Casona-1 well, which includes gas compression, was commissioned following the demobilization of the La-Casona-2 drilling rig. La Casona-1 production is expected to start during the next week.
Rumi-1 Exploration Well, El Eden Block (40% Working Interest)
The Rumi-1 exploration well targeting the Mirador, Gacheta and Une Formations was spud on November 6, 2013 and is currently drilling at a depth of approximately 5,000 feet in the Guayabo Formation. Results are expected sometime around mid-December.
Petroamerica Oil Corp. is an 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 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 and drilling activities identified including the expected timing of mobilisations of drilling rigs and the commencement of production. 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 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 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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