PetroMagdalena suspends Santa Cruz-1X exploratory well and provides information on blockade of roads in Colombia
21 April 2012 - 2:08PM
PR Newswire (Canada)
Santa Cruz-1X Well Suspended TORONTO, April 24, 2012 /CNW/ -
PetroMagdalena Energy Corp. 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: Santa Cruz-1X Test Formation Interval DST 1
Barco 11, 263-276 DST 2 Barco 11, 083-103 DST 3 Barco 11, 017-027
11, 040-066 DST 4 Los Cuervos 10, 714-724 DST 5 Mirador 9, 726-746
9, 842-862 DST 6 Mirador 9, 734-754 9, 494-524 9, 470-480 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. PetroMagdalena
Energy Corp. CONTACT: Michael DaviesChief Financial Officer(416)
360-7915Belinda LabatteInvestor Relations Representative(647)
436-2152
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