THE WOODLANDS, TX, Oct. 9, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal and development in Portugal, is pleased to provide an operational update on the ongoing drilling of its Alcobaça #1 ("ALC-1") Presalt well in the Aljubarrota-3 concession and its Lias stratigraphic drilling program, onshore Portugal.
The ALC-1 well is being drilled under a joint venture with Petróleos de Portugal - Petrogal ("Galp") who is carrying Porto on 50% of the total drilling costs of this well. The Company spud the ALC-1 well, its first Presalt well, at the end of August 2012 and has reached a total measured depth of 2,935 meters. Using interpreted 3-D seismic data, the ALC-1 well is targeting a mapped four-way closure approximately 800 meters high to the ALJ-2 appraisal well at the Company's Aljubarrota gas discovery. The well has encountered a thicker than expected salt section and has now drilled though this salt section and into the closure below the salt. Galp and Porto have decided to run a liner and then resume drilling operations to a targeted depth of 3,300 meters. The thicker than expected salt section is encouraging and the Company's remapping indicates that it is still drilling within the targeted closure. The Company cautions that it is still drilling into the primary zone of interest and final results are forthcoming. Porto anticipates its drilling operations at the ALC-1 well to reach total depth within the next two weeks.
"We continue to have high expectations for this well and are thus far encouraged by our preliminary findings," said Joseph Ash, President and CEO of Porto. "We encountered elevated gas readings when we drilled out of the salt and are now targeting a seismic anomaly we see on our 3D that we interpret as a potential reservoir interval. We are working closely with Galp to evaluate this section which has the potential to make this a commercial discovery."
The Porto Lias unconventional oil joint venture with Sorgenia International B.V., Netherlands, and Rohöl-Aufsuchungs Aktiengesellschaft, Austria, (together the "Farm-in Partners"), has now concluded a 23-well stratigraphic drilling program to jointly evaluate the unconventional resource potential of the Lower Jurassic (Lias) stratigraphic interval within Porto's concessions in Portugal. During Phase 1, for which Porto's costs are 100% carried by the Farm-in Partners, the Company originally intended to drill 19 wells. However, due to drilling efficiencies, the scope of the Phase 1 drilling program was expanded to drill an additional four wells for a total of 23 wells. This 23-well program is now complete, and the Farm-in Partners have until December 31, 2012 to elect to proceed to Phase 2 activities as contemplated under the joint venture.
"We are very excited about the preliminary results of the Lias work program. The drilling and logging program has demonstrated the thicknesses and presence of organic rich intervals that are consistent with our pre-drill estimates and whole cores taken within the Lias interval are showing higher than expected Total Organic Content," said Mr. Ash. "We are currently working on a comprehensive geological and geochemical analysis of the cores and initial results are very encouraging."
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
Email: [email protected]