CALGARY, Sept. 12 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)
announces that as a result of its recent and continuing drilling, completion
and workover programs at Puesto Morales and Rinconada in the Neuquén Basin,
Argentina, the company's daily crude oil production is currently at
8,600 bbl/d with a further volume of approximately 600 bbl/d shut in due to
testing or workovers underway at five separate wells on the two blocks. Also,
current natural gas sales are approximately 380 boe/d, bringing the company's
total production and productive capacity to approximately 9,625 boe/d.
Since the company's last update release in mid-August 2007, the company
has drilled, tested and completed four wells on the Puesto Morales Block and
two more wells on the Rinconada Block. The best well on the Puesto Morales
Block was the 1044 well, which tested at an initial flow rate of approximately
2,000 bbl/d of light gravity crude and is currently onstream, flowing at a
rate of approximately 1,050 bbl/d. The 1033, 1042 and 1043 wells are also oil
producers at current or anticipated rates of approximately 200 bbl/d, 475
bbl/d and 500 bbl/d, respectively.
Petrolifera has also drilled or is drilling additional wells, 1031, 1036
and 1037 at Puesto Morales. Two of these wells, 1036 and 1037, were originally
scheduled as water injectors to be utilized in the company's planned
waterflood on the northern lobe at Puesto Morales. However, the 1036 well
encountered approximately nine meters of Sierras Blancas oil pay and
accordingly will be tested and likely completed as an oil producer. A
replacement injector will now be drill downdip from the 1036 well. The 1031
well is presently drilling. The company will shortly post an updated map of
the region on its website at www.petrolifera.ca.
Recently, Petrolifera has had three rigs working at Puesto Morales. As
was previously indicated, one of these rigs has now been released back to
another operator active in the region. However, the Quintana Rig No. 13, which
arrived from China in the past while, has substantially been relocated to a
staging area in Neuquén Province and is expected to be available to
Petrolifera before the end of September 2007.
A new drilling rig and two service rigs (including the converted Quintana
truck-mounted Rig No. 3) are now operating on the Rinconada drilling program.
In the past month, the 1006, 1029 and 1005 wells have all been drilled, logged
and cased. Testing programs are planned or underway. The company continues to
be enthused about the prospects at Rinconada, especially in light of the fact
the 1029 well encountered oil and is situated some seven kilometers southeast
of the initial discovery made at the Ra-1001 well, raising the possibility of
considerable areal extent to the play. Further results will be released upon
completion of testing programs. The next well to be drilled at Rinconada is
1011, situated approximately one-half mile south of the 1001 discovery well.
Construction and completion of the company's facilities at Puesto Morales
is proceeding on schedule, despite some minor delays related to the shortage
of natural gas to industrial companies during the winter months in Argentina.
This slowed down the delivery of certain component parts for the high pressure
natural gas pipeline to Medanito, which is now expected to commence operations
on September 20, 2007 once low pressure pipeline connections are completed.
High pressure connections and compression will now be operative around
mid-November 2007. Final completion of certain of the company's water
treatment facilities and water injection scheme will also be delayed by
several weeks for the same reason and are expected to be substantially
operative by mid-October 2007.
Elsewhere in Argentina, the company has been pre-awarded the Puesto
Guevara Concession by the government of the Province of Rio Negro, Argentina.
This block, which encompasses 171,520 acres (670 sq. kilometers), is on trend
with and contiguous with the Vaca Mahuida Concession southeast of the
Rinconada Block. Petrolifera was the sole bidder on this block at a recent Rio
Negro sale of oil and natural gas rights. Upon formal award, Petrolifera as to
a 100 percent working interest will be committed to reprocessing existing 3D
seismic coverage on the block, to shooting 100 square kilometers of new 3D
seismic, and to the drilling of one 2,000 meter well within the first three
years of the award date.
In Peru, the company's 2D 800 kilometer seismic program on Ucayali Block
107 is underway. The company is also evaluating various alternatives to secure
a drilling rig or rigs for its proposed 2008 program on both its 100
percent-owned Ucayali Block 107 and on the Maranon Block 106.
In Colombia, formal awarding of the Sierra Nevada II TEA is anticipated
in the next several days. In the interim, Petrolifera's technical staff is
gathering and assessing all relevant data for the Sierra Nevada I License and
the Turpial TEA.
Petrolifera Petroleum Limited is a Calgary-based crude oil and natural
gas exploration, development and production company. It is active in the
Neuquén Basin, Argentina; in the Maranon and Ucayali Basins onshore Peru; and
holds concessions onshore Colombia. The company's shares are listed for
trading on the Toronto Stock Exchange under the symbol PDP.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including but not
limited to future drilling plans, anticipated capital expenditures, forecast
production, anticipated reserve additions and estimated flow rates and levels
of water incursions. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results
to differ materially 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; 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 risk associated with international activity. Additional risks
and uncertainties are described in the company's Annual Information Form which
is filed on SEDAR at www.sedar.com.
The company's ability to complete its capital program and potentially
increase production volumes and reserves is dependent on access to services,
drilling rigs and equipment. Similarly, the company's ability to increase
sales of oil and natural gas is dependent on sustained productivity of new and
existing wells, maintenance (or reduction) of water cuts and completion of
certain infrastructure and transportation systems that are currently under
construction. There can be no assurance that the flow rates of newly drilled
wells will result in stabilized production at these levels or that the
company's new or existing high productivity wells will not incur higher water
cuts than that reported herein or reductions in reservoir pressures, resulting
in a decision to further curtail production pending implementation of the
proposed pressure maintenance program or other remedial measures. 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. Forward looking statements
contained in this press release are made as of the date hereof and are subject
to change. The company assumes no obligation to revise or update forward
looking statements to reflect new circumstances, except as required by law.
A barrel of oil equivalent (boe), derived by converting gas to oil in the
ratio of six thousand cubic feet of gas to one barrel of oil, may be
misleading, particularly if used in isolation. A boe conversion is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.
For further information:
For further information: Richard A. Gusella, Executive Chairman,
Petrolifera Petroleum Limited, (403) 538-6201, Fax: (403) 538-6225,