Santa Cruz-1X Well Suspended
TORONTO, April 24, 2012 /CNW/ - PetroMagdalena Energy Corp. (TSXV: PMD) has finished drilling and testing of the Santa Cruz-1X well located in the Santa Cruz Block in the Catatumbo Basin. Based on the results of the testing program, the well has been suspended to allow for further geological studies and a final conclusion on the prospectivity of the area. PetroMagdalena has a 70% working interest in the Santa Cruz Block, the Santa Cruz-1X well is the first exploration well on the block.
The testing program consisted of three tests in the Barco, the first with water and traces of oil, the second two wet, one in the Cuervos with no inflow and two tests in the Mirador, both tests resulting in a natural flow of water.
The program tested the following intervals:
|DST 1||Barco||11, 263-276|
|DST 2||Barco||11, 083-103|
|DST 3||Barco||11, 017-027|
|DST 4||Los Cuervos||10, 714-724|
|DST 5||Mirador||9, 726-746|
|DST 6||Mirador||9, 734-754|
Blockade Affects Cubiro
On the morning of April 19, 2012, small groups of people began illegally blocking roads on the Cubiro Block, in the municipalities of Trinidad and San Luis de Palenque, which has led to a lack of public order in the area. These persons are not employees or contractors of PetroMagdalena or associated in any way with the company. The blockades and the actions of those involved have resulted in a lack of public order which impacts PetroMagdalena's operations in the area.
As a result of these measures, a temporary production halt has been initiated on certain wells located in the Cubiro Block. Management estimates that approximately 3,700 barrels of oil per day are currently shut-in. PetroMagdalena has evacuated all non-essential operational personnel from the Cubiro Block to ensure their safety. The Company's priority is to maintain the well-being of our personnel and contractors and to limit any potential damages and we will continue to take all necessary measures to do so.
PetroMagdalena's social responsibility practices and policies include a full time Social Manager and permanent social representatives in the area of operations. PetroMagdalena is committed to open and honest dialogue with stakeholders and members of their local communities. The Company will continue to work with the National Government authorities for restoring law and order in the area and will provide all necessary support requested.
PetroMagdalena is a Canadian-based oil and gas exploration and production company, with working interests in 19 properties in five basins in Colombia. Further information can be obtained by visiting our website at www.petromagdalena.com
All monetary amounts in U.S. dollars unless otherwise stated. This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of PetroMagdalena. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and reserve life of the various oil and gas projects of PetroMagdalena; the estimation of oil and gas reserves; the realization of oil and gas reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of PetroMagdalena and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated. Although PetroMagdalena has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. PetroMagdalena undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither 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 news release.
For further information:
Chief Financial Officer
Investor Relations Representative