TORONTO, Nov. 1, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal and development in Portugal, today announced results from the drilling of the Alcobaça #1 ("ALC-1") Presalt exploration well in the Aljubarrota-3 concession, onshore Portugal. The well was drilled under a joint venture with Petróleos de Portugal - Petrogal ("Galp") who carried Porto on 50% of the total costs associated with the drilling of this well, estimated to be approximately $10.7 million.
The Company spud the ALC-1 well at the end of August 2012. The ALC-1 well was the Company's first Presalt well and reached a total measured depth of 3,240 meters. The well encountered a 300 metre gas column trapped below salt, but did not find sufficient reservoir sands to be a commercial success. The Company has begun efforts to plug and abandon the well and release the rig. Porto and Galp are initiating technical discussions on the best path forward.
"The well penetrated approximately 50 net meters of sand and saw good reservoir properties in several intervals, but much of the sands were near the base of the trapped gas column and as such were deemed non commercial," said Joseph Ash, President and CEO of Porto Energy. "Overall we drilled nearly 1,000 feet of hydrocarbon column. The salt sealing mechanism worked. The pre-salt charge and migration was confirmed as the sands were found to be gas bearing. Reservoir containment was also demonstrated since there was no breach. Unfortunately, we discovered a much lower net to gross ratio on the sands in this discovery. Regardless, this demonstrated to the partnership that the play can work in the basin."
Porto will turn its near term focus to its Lias unconventional resource oil play while Mohave and Galp evaluate other parts of the basin where the pre-salt is potentially productive. The Porto Lias unconventional oil joint venture with Sorgenia International B.V., Netherlands ("Sorgenia"), and Rohöl-Aufsuchungs Aktiengesellschaft, Austria ("RAG"), concluded a 23 well stratigraphic drilling program in the third quarter of 2012 to jointly evaluate the unconventional resource potential of the Lower Jurassic (Lias) stratigraphic interval within Porto's concessions in Portugal. While the cores continue to show encouraging results, complete rock mechanics and geochemical analysis is ongoing. Complete results are expected in the first quarter of 2013.
"We are very pleased with the results of our Lias work program and the extra wells we drilled have allowed the partnership to collect more data to analyze and interpret," said Joseph Ash. "We and our partners remain very optimistic about what we are seeing in the data thus far."
About Porto Energy Corp.
Porto Energy Corp. is an international oil and gas company engaged in the exploration of crude oil and natural gas in Portugal, including the appraisal of a gas discovery. Through its wholly owned subsidiary, Mohave Oil And Gas Corporation (a Texas corporation with branch offices in Portugal), the Company holds working interests in seven concessions in Portugal's Lusitanian Basin totaling approximately 1.9 million net acres. Through its exploration efforts to date, the Company has identified seven major exploration trends over its concessions including unconventional oil and gas resource plays as well as conventional oil and gas targets. Porto Energy's shares trade on the TSX Venture Exchange under the ticker symbol "PEC". For more information on Porto Energy visit: www.portoenergy.com.
This press release contains certain forward-looking statements. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements that are contained in this press release, except in accordance with applicable securities laws.
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 release.
SOURCE: Porto Energy Corp.
For further information:
Heath Cleaver - Chief Financial Officer