CALGARY, March 22 /CNW/ - Petrolifera Petroleum Limited (PDP-TSX) announced today that the Brillante SE-1X well in the 100% owned Sierra Nevada Block, Colombia, has encountered indicated hydrocarbon-bearing zones.
The well was spudded on February 16, 2010, has been drilled without incident and reached the base of the primary objective section in the Cienaga de Oro ("CDO") Formation on March 18, 2010, five days ahead of schedule. Intermediate logs were run on March 19, 2010 and March 20, 2010.
An initial interpretation by a qualified third party evaluator of logs, mud log shows and MDT pressure gradient data through the primary objective section in the CDO Formation, indicated that hydrocarbon-bearing sandstones were found over two main intervals in the well. The expected product is natural gas and natural gas liquids.
This preliminary interpretation concluded that the upper interval contains 184 feet of calculated gross pay and 158.5 feet of calculated net pay, while a deeper series of sandstones contains 85 feet of calculated gross pay and 56 feet of calculated net pay. Intermediate 9 5/8th inch casing will be run across this zone and once this procedure is completed, drilling will resume with a view to evaluating deeper objectives, including possibly for crude oil.
The projected total depth of the well is 9,500 feet. Testing equipment is being mobilized to the location and testing is expected to begin in approximately three weeks, after the well has reached total depth. There is no guarantee at this stage as to the quality of reservoir permeability and whether or not the formation can flow commercial rates of hydrocarbons. This can only be evaluated through testing.
Petrolifera Petroleum Limited is a Calgary-based crude oil, natural gas and natural gas liquids exploration, development and production company with interests in eleven concessions or licenses in Argentina, Colombia and Peru.
Forward Looking Information:
This press release contains forward looking information including, but not limited to, anticipated results from the CDO Formation in the Brillante SE-1X well, planned testing of the CDO Formation and the timing associated therewith and the projected total depth of the Brillante well. Forward looking information is not based on historical facts but rather on Management's expectations regarding the company's future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities and expectations with respect to general economic conditions. Such forward looking information reflects Management's current beliefs and assumptions and is based on information currently available to Management. Forward looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking information, including but not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production, unavailability of or delays in receipt of required equipment, delays or changes to plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty associated with geological interpretations; the uncertainty of estimates and projections in relation to production, costs and expenses and health, safety and environment risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and third parties located in foreign jurisdictions and the risk associated with international activity. There can be no assurance that planned testing of CDO Formation in the Brillante SE-1X well drilled on the 100 percent owned Sierra Nevada License will yield commercial results. Hydrocarbon shows and results of logs do not confirm the presence of commercial hydrocarbons. Additional testing is required to assess the quality of the reservoir permeability and whether or not the CDO Formation is capable of flowing commercial rates of hydrocarbons. Petrolifera has the right to appraise the Sierra Nevada License but does not have a right to produce same until such time as the reserves are determined to be commercial. Exploration, appraisal and development of crude oil and natural gas reserves is speculative and involves a significant degree of risk. Additional risks and uncertainties associated with Petrolifera's future plans are described in Petrolifera's Annual Information Form for the year ended December 31, 2009. Although the forward looking information contained herein is based upon assumptions which Management believes to be reasonable, the company cannot assure investors that actual results will be consistent with this forward looking information. This forward looking information is made as of the date hereof and the company assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. Because of the risks, uncertainties and assumptions inherent in forward looking information, prospective investors in the company's securities should not place undue reliance on this forward looking information.
SOURCE PETROLIFERA PETROLEUM LIMITED
For further information: For further information: R. A. Gusella, Executive Chairman, (403) 538-6201; Or Gary D. Wine, President and Chief Operating Officer, (403) 539-8450; Or Kristen J. Bibby, Vice President Finance and Chief Financial Officer, (403) 539-8450, Fax: (403) 538-6225, email@example.com, www.petrolifera.ca