End of December Production 776 boed
VANCOUVER, Jan. 3, 2018 /CNW/ - PentaNova Energy Corp. (the
"Company") (TSXV: PNO) continues to grow its production base
in Argentina by applying proven
technologies to increase daily production. The Company's working
interest production as of the end of December was 776 boed.
Operations in the Llancanelo block are continuing, with the
workover completed in November 2017
on well LLN2012, where a downhole heater was installed. Production
subsequently rose from 35 bopd on average to a current flow 125
bopd. This test has shown that well productivity can be increased
substantially by improving the inflow into the well, and the data
is being used to help optimize the well designs for the 2018
development drilling campaign in Llancanelo.
"PentaNova believes production can be dramatically improved
through the implementation of proven technologies to our existing
and planned wells," said Serafino
Iacono, Chairman of PentaNova. "The more than three-fold
production increase of this single well from 35 bopd to 125 bopd
strongly suggests to me that our development model can be scaled
across the massive heavy oil resource in the Llancanelo block.
Technology will be the key to unlocking the potential of the field
and taking it from it's relatively small production today of around
1300 bod to being a world class producer."
"We are applying this strategy to raise production from all of
our Argentine assets, primarily coming from the improvements in the
Llancanelo block and through the addition of Sur Rio Deseado. As a
result, PentaNova continues to develop cashflow as it advances its
strategy to maximize development of producing wells, develop new
wells and acquire new assets, to build the company into one of
Latin America's newest energy
producers."
PentaNova holds a 39% working interest in the Llancanelo block
and is completing the administrative registry with the Province of
Mendoza for the transfer of an additional 11% working interest
previously announced on November 22,
2017.
PentaNova has also finalized the acquisition of the Sur Rio
Deseado Este Production asset (SRDE-Producion) and the Sur
Rio Deseado Exploration (SRDE-Exploracion), obtained as part of the
Patagonia Oil Corp acquisition on August 9,
2017, with ROCH S.A., the selling party, transferring 54.14%
and 7.92% of the Sur Rio Deseado Este Production and
Exploration assets respectively, to PentaNova's wholly owned
subsidiary Alianza Petrolera S.A. ("Alianza"). The SRDE Production
asset has been averaging 60 bopd of 12-18 API heavy oil production
for the last three months, and PentaNova, through Alianza, will act
as the operator on the Production block. This provides PentaNova
with a foothold in the heavy oil southern flank of the San Jorge
Basin.
Operations continue in Colombia
on the Maria Conchita block. In order to avoid extra mobilization
costs during the holiday period, the Company elected to delay
drilling operations until the first quarter. These delays will not
materially impact the overall project timeline. Work is progressing
on course for the other technical and administrative requirements
necessary to produce gas from the block.
The Company plans to finalize its capital budget for activities
in both Argentina and Colombia with partners prior to making a final
decision regarding the credit facility proposal received late in
2017.
About PentaNova Energy Corp.
PentaNova Energy Corp. is a publicly traded E&P company
focused on proven oil & gas plays in Latin America. The Company holds a large
diversified portfolio of producing, development and unexploited
assets in Argentina and
Colombia, leveraging its technical
expertise and proven track record of building companies and
creating value.
Complete reports and statements are available on SEDAR at
www.sedar.com and on the Company website
www.pentanovaenergy.com.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the operations described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
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Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Please visit our website at www.pentanovaenergy.com
SOURCE PentaNova Energy Corp.