CALGARY, April 26 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today that as a follow-up to its press release dated April 19, 2010, the company is pleased to report a significant upward revision of the previously calculated absolute open flow ("AOF") test rate for the Cienaga de Oro ("CDO") Formation in the Brillante SE-1X well, drilled on its 100% owned Sierra Nevada License in Colombia.
The newly calculated AOF is 18.0 MMcf/d, a rate 5.5 MMcf/d greater than the previous estimate. The increase from the previous estimate resulted from recovery of the bottom-hole pressure data recorded during the flow and shut-in periods of the production test, which was conducted during the period from April 17, 2010 through April 20, 2010, resulting in a more accurate AOF estimation. The previous estimate used assumptions based upon information available at the time of the press release to extrapolate surface pressures to bottom-hole conditions.
As previously announced, the measured rate of the drill stem test ("DST") conducted between 3,138 feet - 3,350 feet subsurface was 8.4 MMcf/d of dry natural gas, with no water, through a 48/64th inch choke with surface pressure at 579 pounds per square inch ("psi").
Current plans to suspend the well until a permit to conduct a long-term test is received remain unchanged.
Readers should be cautioned that measured flow rates and the calculated AOF rate may not be indicative of stabilized production rates for the Brillante SE-1X well. Further long term testing of the Brillante SE-1X well is required. Petrolifera has a right to appraise its oil and gas rights in Colombia but it does not have a right to produce same until such time as the reserves are determined to be commercial.
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, additional testing planned for the CDO Formation and plans to suspend the well until required permits are received to complete additional testing. 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 or regulatory approvals, 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 additional long term testing of the 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. Regulatory approvals are required prior to commencing the long term testing and the timing of receipt of such approvals is uncertain. 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 which is available at www.sedar.com. 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: Petrolifera Petroleum Limited, 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; Inquiries@petrolifera.ca, www.petrolifera.ca