PetroMagdalena Continues Exploration Success with Another Discovery on the Cubiro Block
27 February 2012 - 11:00PM
PR Newswire (Canada)
TORONTO, Feb. 27, 2012 /CNW/ - PetroMagdalena Energy Corp. ,
provided an update today on its ongoing exploration program.
Luciano Biondi, Chief Executive Officer of the Company stated: "The
Llanos exploration program is continuing to build our production
and reserves, the latest discovery occurring at Cernicalo in the
Cubiro Block where we now have Upper Guadalupe sands on production
and potential in uphole in the C7 sands. With the growing success
from our exploration program we can begin to look for growth
opportunities that can be funded from our expanding cash flow."
CERNICALO DISCOVERY AT CUBIRO PetroMagdalena has discovered a new
field with the Cernicalo-1 ST, a sidetrack of the CernĂcalo 1
exploration well, which was drilled to explore the prospectivity of
the Carbonera Formation, located on Polygon B of the Cubiro Block,
where the Company holds a 70% working interest. The Cernicalo-1ST
well was perforated in two Upper Guadalupe sands and it is
currently being tested. In the last five hours, with an
electro-submersible pump at 23 Hz, the Guadalupe Formation has
produced an average of 530 bopd of 23.9 degrees API oil with
30% BS&W. This represents 371 bopd as PetroMagdalena's
gross working interest share. The activities in the Cernicalo 1 ST
also include testing the Carbonera C7. The Cernicalo-1ST well was
spudded on January 18, 2012, drilled to a final depth of 6,845 feet
MD and logged on January 28, 2012. The top of the Carbonera C7 sand
was found at a depth of 5,880 feet MD. Petrophysical data show 13
feet of net pay in C7, with porosity of 24% and hydrocarbon
saturation of 50%; and 12 feet in Upper Guadalupe, with porosity of
28% and oil saturation of 50%. Based on seismic interpretations,
the accumulation discovered by Cernicalo-1ST is a 1.5 km long
structure, corresponding to the typical exploration play in the
Llanos Basin. The structure is on trend with the Barranquero field
to the north and Tijereto Sur-1X exploration well to the south.
EXPLORATION UPDATE Santa Cruz Block, Catatumbo Basin: Santa Cruz
-1X Exploration well The Santa Cruz-1X well, located on the Santa
Cruz Block in the Catatumbo Basin in North Eastern Colombia, was
drilled to the Middle Los Cuervos Formation, reaching TD of 11,550
feet (MD), and finding a repeated section of the Mirador Formation.
Based on the petrophysical logs and mud logging, a 7-inch
production liner has been run in the well and plans are in place to
test several intervals in the Mirador and Los Cuervos formations.
Results from the testing program are expected towards mid-March
2012. PetroMagdalena has a 70% working interest in the Santa
Cruz-1X well and is the operator of the Santa Cruz Block. Cubiro
Block, Llanos Basin: Tijereto Sur - 1X Exploration well The
Tijereto Sur-1X exploration well on the Cubiro Block has been
drilled to a TD of 6,926 feet (MD) and, based on the petrophysical
log data, 7-inch production casing has been run in the well to
total depth and work is ongoing to complete and production test the
C7 Carbonera Formation. Results from the completion and testing
program are expected by early March 2012. PetroMagdalena has a 70%
working interest in the Tijereto Sur-1X well and is the operator of
the Cubiro Block. Arrendajo Block, Llanos Basin: Arrendajo Norte -
1X Exploration well The Arrendajo-1X well on the Arrendajo Block
was drilled on February 9, 2012 to a TD of 6,298 feet (MD) and
subsequently sidetracked to a TD of 7,343 feet. Petrophysical data
do not show any prospective interval and the well will be
abandoned. For location details on these wells, please refer to the
Company's investor presentation at www.petromagdalena.com.
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. Statements concerning oil and gas reserve estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the oil and gas that will be
encountered if the property is developed. Boe may be misleading,
particularly if used in isolation. A boe conversion ratio of 6
mcf:1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Estimated values of future net
revenue disclosed do not represent fair market value. 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.
Glossary
_____________________________________________________________________
|1P: Proven reserves |G&A: General and Administrative | |
|Expenses |
|_________________________________|___________________________________|
|2P: Proven + Probable reserves |MMCF: Million Cubic Feet |
|_________________________________|___________________________________|
|3P: Proven + Probable + Possible |MD: Measured Depth | |reserves |
|
|_________________________________|___________________________________|
|ANH: Agencia Nacional de |MMBBLS: Million Barrels of Oil |
|Hidrocarburos | |
|_________________________________|___________________________________|
|API: American Petroleum Institute|MMBTU: Millions British Thermal
| | |Unit |
|_________________________________|___________________________________|
|BOE: Barrels of Oil Equivalent | |
|_________________________________|___________________________________|
|BOFD: Barrels of Fluid Per Day |NPV: Net Present Value |
|_________________________________|___________________________________|
|BOPD: Barrels of Oil Per Day |PSI: Pounds per Square Inch. The | |
|unit of pressure. |
|_________________________________|___________________________________|
|BOEPD: Barrels of Oil Equivalent |TD: Total Depth of the well |
|Per Day | |
|_________________________________|___________________________________|
|BS&W: Basic Sediments and Water |TVD: True Vertical Depth of
the | | |well |
|_________________________________|___________________________________|
|E&PC: Exploration & Production |TVDSS: True Vertical Depth
Sub Sea | |Contract | |
|_________________________________|___________________________________|
|ESP: Electric Submersible Pump |WI: Working Interest |
|_________________________________|___________________________________|
|FOB: Freight on Board |WTI: West Texas Intermediate Oil | | |Price
Index |
|_________________________________|___________________________________|
PetroMagdalena Energy Corp. CONTACT: Michael DaviesChief
Financial Officer(416) 360-7915Belinda LabatteInvestor Relations
Representative(647) 436-2152
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