Petrolifera updates developments at 1016 well

    CALGARY, March 26 /CNW/ - Petrolifera Petroleum Limited (PDP-TSX)
announces that subsequent to the issuance of its press release earlier today
with respect to its RN.PM a-1016 well, wherein it was announced the well was
flowing at a calculated rate of 460 bbl/d of light gravity crude oil, the well
stopped flowing. This occurred during continued testing of the well using
various choke sizes.
    Testing procedures are continuing, and based on this development it now
appears the well may need some form of artificial lift or pump, although no
conclusion has yet been arrived at in this regard. The change which occurred
may be due to a relatively high gas/oil ratio encountered in the well, along
with some element of pressure depletion due to production from offset wells
and general reservoir quality at this location.
    While subject to the normal risks of predicting how any new well will
perform, Petrolifera believes the well, on pump, will be a commercial producer
and it may produce at or towards the levels recorded when the well was
flowing, but further testing will now be required to confirm this estimate.
    It should be noted that the indicated flow rate represents approximately
four percent of Petrolifera's current average daily production rate, which
will fluctuate over the next several days as field pressure testing of other
individual Puesto Morales wells is undertaken as a normal course procedure.

    Forward Looking Statements

    This press release contains forward-looking statements, including but not
limited to expectations with respect to production rates, flow rates and
productive capacity of the RN.PM a-1016 well and continued testing activities
related thereto. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results
to differ from those anticipated. These risks include, but are not limited to,
risks associated with the oil and gas industry (e.g. operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates and recoverability thereof; the uncertainty
of estimates and projections in relation to production, costs and expenses and
health, safety and environmental risks), the risk of commodity price and
foreign exchange rate fluctuations, the uncertainty associated with
negotiating with foreign governments and third party contractors and risk
associated with international activity. Although Petrolifera believes that our
expectations represented by these forward-looking statements are reasonable,
there can be no assurance that such expectations will prove to be correct. In
particular, Petrolifera has not established a stabilized flow rate in respect
of the RN.PM a-1016 well and this well is not currently onstream. Due to the
risks, uncertainties and assumptions inherent in forward-looking statements,
prospective investors in the company's securities should not place undue
reliance on these forward-looking statements. For a detailed description of
the risks and uncertainties facing Petrolifera, readers should refer to
Petrolifera's Annual Information Form as filed at

For further information:

For further information: R. A. Gusella, Executive Chairman, Petrolifera
Petroleum Limited, Phone: (403) 538-6201, Fax: (403) 538-6225,,

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