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Petrominerales Boa-1 Exploration Well Produces Over 6,000 bopd
Press Release
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
On Thursday September 3, 2009, 9:36 am EDT
http://finance.yahoo.com/news/Petrominerales-Boa1-ccn-3074724394.html?x=0&.v=2
BOGOTA, COLOMBIA--(Marketwire - Sept. 3, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 67% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), announces that the Boa-1 exploration well is producing at over 6,000 bopd of 19 degree API oil at less than 1% water cut from the Lower Sand 1 formation. Boa-1 commenced drilling on June 26, 2009 and reached a total depth of 12,875 feet on July 25, 2009. Logs indicated 48 feet of net oil pay in the Lower Sand 1 and Lower Sand 2 formations. The Lower Sand 2 tests encountered non-commercial quantities of hydrocarbons.
We are currently drilling the Corcel-A2 side-track, targeting the structurally highest point of the Corcel A structure to access by-passed Mirador and Guadalupe pay. We have reached the top of the Mirador formation and are preparing to run intermediate casing. We expect to have the well on production by the end of September. The drilling rig will then be mobilized to our Guatiquia block for a two-well exploration program targeting the Percheron and Candelilla structures prior to returning to Corcel to continue our ongoing Corcel exploration program. We commenced side-track operations on August 15, 2009 on the Chiguiro Oeste-1 well. The testing program on the original Chiguiro Oeste-1 wellbore was suspended due to uncertainty regarding the integrity of the primary cement following significant losses during the cementing operation to a lower thief zone. We intend to core the entire Mirador zone and expect to have the results of the coring and testing program by the end of September. The Chiguiro Oeste-1 well is the second of our 2009 three well heavy oil exploration drilling program in the Llanos Basin. Following completion of operations on Chiguiro Oeste-1, we will be moving the rig to the Rio Ariari block to drill Rio Ariari-1, which we expect to commence in early October.
We have completed the acquisition of 423 square kilometers of 3D seismic over our Castor, Mapache, Casanare Este, Casimena and Rio Ariari blocks and an additional 14 kilometres of 2D data was acquired on the Castor block. The seismic data has been processed and is currently being interpreted. These acquisition programs will satisfy our current seismic phase commitments on these blocks. Our enhanced 3D database is expected to further define previously identified leads and structures derived from our extensive 2D data set.
Company production averaged 20,679 bopd for the month of August and is currently in excess of 25,000 bopd, including production additions form Boa-1 but excluding Corcel-A4 production of about 1,300 bopd. Corcel-A4 went offline August 26 due to the failure of the electric submersible pump. The service rig is being mobilized to Corcel-A4 to run a new pump and we expect to have the well back on-line within 10 days. Following the Corcel-A4 workover, we will embark on a program to upsize the electric submersible pumps and optimize production at Corcel-C1, Corcel-D2, Mapache-1 and Mirasol-1. We expect to have this program completed by the end of October.
Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "will", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to results from drilling, logging and testing operations and the timing of projects. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Petrominerales Ltd. is a Latin American-based exploration and production Company producing oil in Colombia with 16 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 67% owned by Petrobank Energy and Resources Ltd. (TSX:PBG - News).
Contact:
John D. WrightPetrominerales Ltd.President and Chief Executive Officer(403) 750-4400 or 011.571.629.2701Corey C. RuttanPetrominerales Ltd.Vice President Finance and Chief Financial Officer(403) 750-4400 or 011.571.629.2701Jack F. ScottPetrominerales Ltd.Executive Vice President and Country Manager, Colombia(403) 750-4400 or 011.571.629.2701Kelly D. SledzPetrominerales Ltd.Finance Manager(403) 750-4400 or 011.571.629.2701
Petrominerales Records Net Income of $15.3 Million in the Second Quarter
Press Release
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
On Wednesday August 5, 2009, 11:50 pm EDT
BOGOTA, COLOMBIA--(Marketwire - Aug. 5, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 67% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG - News), is pleased to announce second quarter financial and operating results highlighted by a 194% increase in production to 21,548 barrels of oil per day ("bopd") and a 20% increase in funds flow from operations to $64.1 million ($0.63 per share diluted).
FINANCIAL & OPERATING RESULTS
The following table provides a summary of Petrominerales' financial and operating results for the three and six months ended June 30, 2009 and 2008. Interim consolidated financial statements with Management's Discussion and Analysis ("MD&A") are available on the Company's website at www.petrominerales.com and will also be available on the SEDAR website at www.sedar.com.
(All references to $ are United States dollars unless otherwise noted)
http://finance.yahoo.com/news/Petrominerales-Records-Net-ccn-774537325.html?x=0&.v=1
"Petrobank will capitalize PetroBakken with its Canadian Business Unit assets and $400 million of cash."
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Major League Company here!
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Petrobank and TriStar to Create a Premier Southeast Saskatchewan Bakken and Light Oil Producer
Press Release
Source: Petrobank Energy and Resources Ltd., TriStar Oil & Gas Ltd.
On Tuesday August 4, 2009, 7:22 pm EDT
http://finance.yahoo.com/news/Petrobank-and-TriStar-to-ccn-3728755223.html?x=0&.v=1
CALGARY, ALBERTA--(Marketwire - Aug. 4, 2009) - Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News) and TriStar Oil & Gas Ltd. ("TriStar") (TSX:TOG - News) are pleased to announce that their respective Boards of Directors have unanimously agreed to the strategic combination of TriStar and Petrobank's Canadian Business Unit (the "Transaction"). The combination will create a new publicly listed company, PetroBakken Energy Ltd. ("PetroBakken" or the "Company"), that will be a premier, Bakken-focused, light oil exploration and production company. PetroBakken is expected to trade on the TSX under the symbol "TSX:PBN" immediately following the successful completion of the Transaction.
Petrobank will capitalize PetroBakken with its Canadian Business Unit assets and $400 million of cash. PetroBakken will then acquire all the outstanding shares of TriStar. In return, Petrobank will receive 109.8 million common shares of PetroBakken which will represent approximately 64% of PetroBakken's anticipated shares outstanding. Consideration to TriStar shareholders will consist of a combination of PetroBakken common shares and cash. At the election of the holder, a TriStar shareholder will receive $14.75 cash, or 0.5350 of a PetroBakken share, or a combination thereof, being approximately $3.75 per share in cash and 0.3989 of a PetroBakken share, for each share held. Based on $14.75, the consideration received by TriStar shareholders represents a 29% premium to TriStar's 10-day weighted average trading price. In aggregate, TriStar shareholders will receive approximately $580 million in cash and 61,762,500 shares of PetroBakken, representing 36% of PetroBakken's anticipated shares outstanding. In the event that the holders of TriStar shares elect to receive more or less than the set amount of cash, or more or less than the set amount of PetroBakken shares of which they are entitled, the amount of cash or shares to be received by a holder will be adjusted pro rata and the balance of the consideration will be paid in cash or PetroBakken shares, as the case may be.
Alberta Asset Dispositions
Following completion of the Transaction, PetroBakken plans to divest a package of Alberta-based assets consisting of approximately 9,500 boepd (44% light oil, 56% natural gas), and 40.1 mmboe of proved plus probable reserves to further enhance the focus of PetroBakken on southeast Saskatchewan light oil resource plays. Proceeds from the disposition will be used to further solidify the strong PetroBakken balance sheet. Following the divestitures, PetroBakken will primarily be a pure-play, southeast Saskatchewan, light oil-focused company with 2009 exit production of more than 37,000 boepd, more than 95% light oil, more than 70% of which will be from the Bakken.
Dividend Policy
Based upon the underlying strength of PetroBakken's high-netback light oil asset base and flexible balance sheet, PetroBakken intends to adopt a dividend policy initially targeting payments of $0.96 per share per annum, payable monthly, with the first dividend expected to be paid in November to shareholders of record on October 30, 2009. This dividend policy will allow PetroBakken shareholders to benefit in the Company's industry leading high netback production on a monthly basis.
The Transaction
John Wright, President and CEO of Petrobank, commented, "This is a unique opportunity to bring together two like-minded organizations to create a premier southeast Saskatchewan light-oil producer offering exceptional growth potential, focused on applying leading-edge technology to major resource plays, with our primary attention directed initially at the Bakken formation. At Petrobank, our Canadian Business Unit has consistently delivered exceptional per-share production and reserves growth and we have positioned PetroBakken to continue this legacy of growth, while also providing an attractive dividend yield."
Brett Herman, President and CEO of TriStar stated, "TriStar has achieved significant growth over the past three years, assembling a high quality, long life asset base with tremendous upside. We believe the consolidation of the southeast Saskatchewan and Bakken assets of Petrobank and TriStar, and the combination of each company's strong technical staff is the next step in the evolution of our company. With recent technological innovations, together, we have just begun to unlock the true potential of the Bakken and I am excited to be a part of the PetroBakken story going forward."
The Transaction will be completed by way of plan of arrangement (the "Arrangement") and is subject to TriStar shareholder approval. The information circular for the Arrangement is expected to be mailed to TriStar shareholders on or about August 31, 2009 and it is anticipated that the special meeting of TriStar's shareholders will be held on or about September 30, 2009 with closing of the Transaction to occur on or about October 1, 2009. The successful completion of the Transaction is also subject to customary regulatory, stock exchange, court and other approvals.
The Board of Directors of TriStar has concluded that the Transaction is in the best interests of the TriStar shareholders from a financial point of view and has unanimously resolved to recommend that TriStar shareholders vote their shares in favour of the Arrangement. All of the directors and officers of TriStar have entered into lock-up agreements with Petrobank and PetroBakken to vote their TriStar shares in support of the Arrangement.
The Arrangement prohibits TriStar from soliciting or initiating any discussion regarding any other business combination or sale of material assets, contains provisions enabling Petrobank to match competing, unsolicited proposals and, subject to certain conditions, provides for a reciprocal termination fee of up to $80 million.
Key Attributes of PetroBakken
PetroBakken will combine significant, high growth, long-life Bakken reserves and production with legacy conventional light oil assets, which provide high netbacks and a low production decline profile. PetroBakken will be the premier Bakken player in Canada with a greater proportion of its production coming from the Bakken than any other material producer, and will represent a compelling new investment opportunity for investors. In addition, the Company will have significant future development opportunities in the Horn River and Montney gas resource plays in northeast BC that will add long term growth to PetroBakken's attractive light oil position. Pro forma the expected divestiture of the majority of the Alberta assets, PetroBakken will have the following key attributes:
- 2009 total Company exit production greater than 37,000 boepd (after the planned Alberta asset dispositions), more than 95% light oil.
- More than 27,000 boepd from the Bakken (greater than 70% of total Company exit 2009 production).
- More than 127 mmboe of high quality, primarily light oil, proved plus probable reserves (as at December 31, 2008, except for TriStar's acquisition of Talisman properties with reserves reported based on a March 31, 2009 effective date) with significant future reserve growth potential through revisions, additions, improved recoveries and the application of technology.
- Proved plus probable reserve life index of more than 9 years.
- Significant land inventory of over 1.0 million net acres with over 800,000 net acres in southeast Saskatchewan, making PetroBakken the single largest landholder in this region. Of this, over 280,000 net acres (440 net sections) are located in the Bakken play fairway with significant further exposure to Bakken exploration activity, including 80,000 net acres in Montana.
- Further reserve enhancement capabilities on 110 net sections of existing producing Bakken acreage.
- More than 1,300 future Bakken drilling locations.
- Significant upside gas potential in the Horn River and Montney plays in northeast BC, with potential resource capability of 5 to 20 TCF of original gas-in-place ("OGIP") contained in more than 63,000 net undeveloped acres, with over 400 potential drilling locations, providing an additional long-term growth platform.
- Industry leading operating netbacks in excess of $57.00/boe based on US$75.00 WTI.
- Expected operating costs of approximately $8.00/boe.
- Approximately $1.9 billion of tax pools.
- Run rate cash flow of more than $700 million based on US$75 WTI oil price and 2009 exit production.
- 2010 capital budget of approximately $550 million based on a US$75 WTI oil price.
- Initial dividend of $0.96 per share per annum, payable monthly, representing a payout ratio of 23% based on run rate cash flow.
- Excellent financial flexibility with a pro forma debt to cash flow ratio of less than one times.
- 172 million PetroBakken shares outstanding.
- Industry leading technical team.
Strategic Rationale
The combination of the Petrobank and TriStar assets are highly complementary as it creates a pure play investment opportunity for exposure to high-netback light oil and the Bakken resource play. In the Bakken resource play alone, the combined asset base creates a dominant, operationally complementary land position providing significant visible development growth through the drilling of 1,300+ identified locations.
The combined entity is expected to have an improved cost of capital as a result of the focused nature of the high netback conventional and Bakken light oil assets in southeast Saskatchewan.
Additionally, the strategic merger results in the combination of premier technical teams focused on unlocking the value embedded in the large resource in place asset base. Independently, each of TriStar and Petrobank have been industry leaders in applying new, leading-edge technologies to unlock the true potential of the Bakken resource play. Bringing these two teams together in PetroBakken will create the preeminent Bakken resource team utilizing best practices to continually enhance and ultimately maximize recovery factors.
It is expected that PetroBakken's increased scale, particularly in the Bakken, will provide superior operating efficiencies, particularly with respect to complementary gathering systems, oil processing facilities, marketing arrangements and gas plant synergies.
Corporate Strategy
PetroBakken will target significant production and reserves growth through an internally funded capital program underpinned by strong cash flows which will provide an attractive dividend yield to our shareholders. Based on the anticipated dividend policy PetroBakken shares are expected to yield approximately 3% based on a $0.96 annualized dividend and anticipated trading levels for PetroBakken.
A Portfolio of Assets to Support Long-Term Growth
Bakken Resource Play
The Petrobank and TriStar teams have been industry leaders in the application of new technology to maximize value from the Bakken. These efforts have resulted in cost effective drilling and completion methods, superior production rates and high expected ultimate oil recoveries. In 2007, the TriStar and Petrobank relationship began with a 50/50 ownership in 22,000 gross acres that has resulted in joint operations in numerous wells and two facilities. The combined land interests of both parties represents 70,000 net acres of developed land and over 210,000 net acres of undeveloped land for a total of 280,000 net acres or 440 net sections on the Bakken resource play. The synergies of combined facilities and infrastructure will minimize total future investment capital required to fully develop lands as well as improve gas conservation and continue to reduce operating costs.
The drilling and completion plan for the undeveloped lands will predominantly be executed using multi-leg horizontal drilling technology that reduces inter-well distance between horizontal legs from 400 metres to 200 metres, and completion techniques that utilize new fracture stimulation technologies providing much higher fracture intensity along each horizontal leg. Existing developed lands can also benefit from the same technological advances by re-entering existing wells and adding a second horizontal leg adjacent to the existing horizontal well which is then fracture stimulated with increased fracture intensity. Combining bi-lateral horizontal wells with increased frac intensity allows access to considerably more reservoir in an extremely cost-effective manner. The result is a significant increase in rates of return with much higher productivity and expected ultimate oil recoveries.
A typical Bakken section is generally recognized by third party reserve evaluators as containing approximately 4.0 mmbbls of original-oil-in-place with proved plus probable reserve recovery estimated at 12.5%. PetroBakken's internal assessments, based on ongoing strong production performance combined with increased well density and frac intensity is ultimately expected to increase reserve recovery to up to 22.5%. PetroBakken will control 440 net sections of land, with an estimated ultimate recovery factor of 22.5%, the potential recoverable resource could approach 400 mmbbls.
Southeast Saskatchewan Conventional
PetroBakken will also be strongly positioned in the complementary conventional oil plays in the Midale, Frobisher, Alida and Tilston formations of Southeast Saskatchewan. Production of approximately 10,000 boepd from these Mississippian aged reservoirs provides a stable platform of low decline production and strong cash flows while offering future growth through infill drilling. Our current inventory is represented by 144 net proved undeveloped locations and a further 235 net unbooked development locations identified internally. These relatively low-risk, high netback, light oil wells offer attractive investment opportunities at approximately $1.0 million to drill, complete and tie-in. A typical conventional southeast Saskatchewan well has initial production rates in the range of 75 to 200 bopd and reserves in the range of 50 to 150 mbbls per well. In addition to these low risk development opportunities, the Company will have 510,000 net undeveloped acres of land providing the opportunity for seismically driven step-out and exploration drilling.
Montney and Horn River Gas Resource Plays
Additional long term growth will come from PetroBakken's large land position in the Montney and Horn River natural gas resource plays located in northeast British Columbia. The company has 17 sections of land (100% working interest) in the Monias area with Montney potential of upwards of 30 to 50 Bcf of Original Gas in Place (OGIP) per section, providing a total resource potential of 510 to 850 Bcf of OGIP with recoveries expected to range between 25% and 35%. In addition, the Company will have a further 97 (84 net) sections north of Fort Nelson in the Horn River basin. Various industry sources estimate that the prospective zones within the Horn River basin may contain between 30 and 300 Bcf of OGIP per section, providing a total resource potential of 2.5 to 25 Tcf of OGIP with recoveries expected to range between 20% and 30%. PetroBakken's technical team has successfully drilled over 400 horizontal wells with multi-stage fracture stimulations, more than any other operator in the Western Canadian Sedimentary basin. This experience positions PetroBakken to be a leader in the development of these massive unconventional resource plays.
PetroBakken Management and Board of Directors
Certain of the Senior Executives of Petrobank will also serve in the following roles for PetroBakken:
John D. Wright, Chairman of the Board & Chief Executive Officer
R. Gregg Smith, President and Chief Operating Officer
Corey C. Ruttan, Executive Vice President and Chief Financial Officer
The Board of Directors will consist of nine members, six appointed by Petrobank, including John D. Wright, and three appointed by TriStar, including Brett Herman, current President and CEO of TriStar.
Financial Capacity
Prior to closing, PetroBakken expects to finalize a $1.05 billion borrowing base credit facility currently being arranged by TD Securities Inc. ("TD Securities"), and it is expected that approximately $950 million will be drawn on closing, prior to the anticipated Alberta asset divestiture. TD Securities and BMO Capital Markets have pre-committed to fund up to $400 million of the facility. Debt to run-rate cash flow, following the Alberta asset dispositions, is expected to be less than one times providing for excellent financial flexibility. PetroBakken plans to maintain an active hedging strategy to provide certainty to a portion of our revenue stream.
Advisors
TD Securities acted as sole financial advisor to Petrobank for the Transaction.
Macquarie Capital Markets Canada Ltd. ("Macquarie") and BMO Capital Markets acted as financial advisors to TriStar. Macquarie and BMO Capital Markets have advised the TriStar Board of Directors that they are of the opinion that the consideration to be paid to TriStar pursuant to the Transaction is fair from a financial point of view, subject to review of final form documentation. A copy of the fairness opinions will be included in the TriStar information circular to be sent to shareholders for the special meeting to be called to approve the plan of arrangement.
Haywood Securities Inc., and UBS Securities Canada Inc. are acting as strategic advisors to Petrobank.
CIBC World Markets Inc., GMP Securities L.P., and National Bank Financial are acting as strategic advisors to TriStar.
All advisors have agreed to receive a portion of their fees in the form of PetroBakken shares.
FirstEnergy Capital Corp., and TD Securities have agreed to manage the sales process for PetroBakken's Alberta assets.
Joint Conference Call and Audio Webcast
A joint conference call and webcast hosted by management of Petrobank and TriStar will be held for investors, financial analysts, media and other interested persons on Wednesday, August 5, 2009 at 9:00 a.m. (MST) (11:00 a.m. EST) to discuss the Transaction.
Live-Call Audience Dial-In Number: 416-340-2216 or 866-226-1792
Replay Audience Dial-in Number & Codes: 416-695-5800 or 800-408-3053
Participant Number: 1786213
A live audio webcast of the investor call is available via: http://events.onlinebroadcasting.com/petrobank/080509/index.php
Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the Transaction, benefits of the Transaction, timing of the Transaction and go-forward operational plans of PetroBakken. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in Petrobank's and TriStar's Canadian securities filings. Such factors include, but are not limited to: TriStar shareholder approval of the Transaction not being received, customary approvals to the Transaction not being received, general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling; timing and rig availability; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of both Petrobank and TriStar. There is no representation by Petrobank or TriStar that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, neither Petrobank nor TriStar assumes any obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
The original gas-in-place and original oil-in-place figures included in this press release are Petrobank management estimates only, actual figures and recovery factors may be less.
BOE. Disclosure provided herein in respect of boes 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 an economic value at the wellhead.
Contact:
John D. WrightPetrobank Energy and Resources Ltd.President and CEO(403) 750-4400Corey C. RuttanPetrobank Energy and Resources Ltd.Senior Vice President and CFO(403) 750-4400R. Gregg SmithPetrobank Energy and Resources Ltd.Senior Vice President and COO, Canada(403) 750-4400Email: ir@petrobank.comWebsite: www.petrobank.comBrett HermanTriStar Oil & Gas Ltd.President and CEO(403) 268-7800Jason J. ZabinskyTriStar Oil & Gas Ltd.Vice President, Finance and CFO(403) 268-7800
Petrominerales Updates Exploration Drilling Activities
Press Release
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
On Wednesday July 29, 2009, 11:56 pm EDT
http://finance.yahoo.com/news/Petrominerales-Updates-ccn-3791543543.html?x=0&.v=1
Companies:Petrobank energy & com npvPetrominerales ltd
BOGOTA, COLOMBIA--(Marketwire - July 29, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 67% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), announces that the Chiguiro Oeste-1 and Corcel Boa-1 exploration wells have been cased as potential oil wells. The Corcel-F1 exploration well, originally cased as a potential oil well, will be re-completed for water disposal after testing non-commercial rates of hydrocarbons.
Chiguiro Oeste-1 commenced drilling on July 12, 2009 and reached a total depth of 4,984 feet on July 19, 2009. Electric logs indicate 56 feet of potential net oil pay in the Mirador formation. We have made the decision to case the well and we expect to have the results of the testing program by the end of August. The Chiguiro Oeste-1 well is the second of our 2009 three well heavy oil exploration drilling program in the Llanos basin. Following completion of testing operations at Chiguiro Oeste-1, we will be moving the rig to the Rio Ariari block to drill Rio Ariari-1, which we expect to commence drilling by the end of August.
Boa-1, previously named Corcel-B1, commenced drilling on June 26, 2009 and reached a total depth of 12,875 feet on July 25, 2009. Electric logs indicate 48 feet of potential net oil pay in the Lower Sand 1 and Lower Sand 2 formations. The potential pay in the Lower Sand 2 was not expected but is indicative of the multi-zone potential in Corcel. The well has been cased and we expect to have the results of the testing program by the end of August.
Corcel-F1 commenced drilling May 10, 2009 and reached a total depth of 12,830 feet on June 7, 2009. Production tests conducted on the Lower Sand 1, Guadalupe and Mirador formations were completed July 29, 2009. These tests indicated that all zones of interest are wet or cannot produce hydrocarbons at commercial rates. Corcel-F1 was the first of our Corcel exploration wells drilled on the east side of the main Corcel fault. Petrophysical data indicates that hydrocarbons have migrated through the reservoir quality rocks encountered in F1, indicating the potential for new play concepts at Corcel, and will be incorporated into our geological model going forward. The well will now be completed for water injection service.
The drilling rig at Corcel is now being mobilized to Corcel-A2, where it will drill a side-track, targeting the top of the Corcel A structure. Corcel-A4, the structurally highest well, is not draining the top of the A structure efficiently due to a poor cement job. The rig will then be mobilized to our Guatiquia block for a two-well exploration program targeting the Percheron and Candelilla structures prior to returning to Corcel to continue our ongoing Corcel exploration program. We have completed the acquisition of 337 square kilometers of 3D seismic over our Castor, Mapache, Casanare Este and Rio Ariari blocks. We expect to finish recording the remaining 85 square kilometers of 3D data over our Casimena block by mid-August. These acquisition programs will satisfy our current seismic phase commitments on these blocks. Our enhanced 3D database is expected to further define previously identified leads and structures derived from our extensive 2D data set.
Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "will", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to results from drilling, logging and testing operations and the timing of projects. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Petrominerales Ltd. is a Latin American-based exploration and production Company producing oil in Colombia with 16 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 67% owned by Petrobank Energy and Resources Ltd. (TSX:PBG - News).
Contact:
John D. WrightPetrominerales Ltd.President and Chief Executive Officer(403) 750-4400 or 011-571-629-2701Corey C. RuttanPetrominerales Ltd.Vice President Finance and Chief Financial Officer(403) 750-4400 or 011-571-629-2701Jack F. ScottPetrominerales Ltd.Executive Vice President and Country Manager, Colombia(403) 750-4400 or 011-571-629-2701Kelly D. SledzPetrominerales Ltd.Finance Manager(403) 750-4400 or 011-571-629-2701011-571-629-4723 (FAX)Email: ir@petrobank.comWebsite:
http:// www.petrominerales.com
Petrominerales to Case Corcel-F1 as Potential Oil Well
On Monday June 15, 2009, 10:09 pm EDT
http://finance.yahoo.com/news/Petrominerales-to-Case-ccn-15532066.html?.v=1
BOGOTA, COLOMBIA--(Marketwire - June 15, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 66.7% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce that we plan to case our Corcel-F1 well as a potential oil well. The well commenced drilling on May 9, 2009 and was drilled directionally to a total depth of 12,830 feet on June 7, 2009. Wellbore stability issues prevented the acquisition of a complete logging suite. Based on drilling log data, geological sampling and gas shows similar to those experienced while drilling our Corcel-E1 well, the decision was made to case the well. We plan to conduct a multi-zone testing program over the Lower Sand 1, Guadalupe and Mirador formations using the completion rig. Test results are expected by mid-July. We plan to spud Corcel-B1, the next well in our ongoing Corcel drilling program, by the end of June.
Phase 1 construction of our Monterrey offloading station with a delivery capacity of 11,000 bopd is now complete. The facility has been commissioned and we expect to commence deliveries this week. Final delivery capacity of 20,000 bopd is expected to be available early in the third quarter of this year. The facility will be the closest offloading station to Corcel, 77 kilometers away, and will significantly reduce our trucking costs for volumes delivered to Monterrey.
Our Chiguiro Este-1 exploration well commenced drilling today. This is the first well in our 2009 three-well heavy oil exploration program on our 818,650 acre land position in the southern Llanos Basin.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production Company producing oil in Colombia with 16 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 66.7% owned by Petrobank (TSX:PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "plan", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of capital projects and the results of operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011-571-629-2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011-571-629-2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011-571-629-2701
Wonder how their Oil Sand Technology Demonstation Project is faring?
kIf it really works as projected the oil sands will no longer present such an environmental disaster.
futr
Petrominerales Announces First Quarter Results
On Wednesday May 6, 2009, 11:57 pm EDT
BOGOTA, COLOMBIA--(Marketwire - May 6, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.9% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG - News), is pleased to announce first quarter financial and operating results.
FINANCIAL & OPERATING RESULTS
The following table provides a summary of Petrominerales' financial and operating results for the three months ended March 31, 2009 and 2008. Interim consolidated financial statements with Management's Discussion and Analysis ("MD&A") are available on the Company's website at www.petrominerales.com and will also be available on the SEDAR website at http://www.sedar.com.
http://finance.yahoo.com/news/Petrominerales-Announces-ccn-15160374.html?.v=1
Petrobank's been on a roll lately Sumisu!
Should have bought some more.
BEXP is over a 3 bagger off of its lows as well!
Petrobank Announces Record 2008 Results
Thursday March 12, 2009, 3:42 am EDT
CALGARY, ALBERTA--(Marketwire - March 12, 2009) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) is pleased to announce record year-end financial and operating results.
(All references to $ are Canadian dollars unless otherwise noted)
http://finance.yahoo.com/news/Petrobank-Announces-Record-ccn-14613226.html
Petrominerales Announces Strong Year End Results and Continued Success at Mapache
Monday March 2, 2009, 1:32 am EST
BOGOTA, COLOMBIA--(Marketwire - March 2, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.5% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce record financial, operating and year-end reserve results along with another exploration success with our Mapache-1 well testing 1,400 barrels of oil per day ("bopd").
HIGHLIGHTS...............
http://finance.yahoo.com/news/Petrominerales-Announces-ccn-14506604.html
No question about it Petrominerales knows how to find and produce copious amounts of Oil!
Market approves also.
We're up almost 10% today!
futrcash
Petrominerales Mapache-2 Well Flows 1,300 BOPD
Monday February 9, 12:09 am ET
http://biz.yahoo.com/ccn/090209/200902090510571001.html?.v=1
BOGOTA, COLOMBIA--(Marketwire - Feb. 9, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.5% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce that our Mapache-2 exploration well flow tested an average 1,300 barrels of 34 degree API oil per day, at a final water cut of 22%, on an initial 30 hour test from 9 feet of high quality sand, in the Upper Carbonera 7 (C7) formation.
The well was originally spudded on March 27, 2008, reached a total depth of 8,112 feet on April 9, 2008 and was cased as a potential oil well in the Mirador and Carbonera formations. At that time, however, we were unable to economically access the area due to the deterioration of the road during the Llanos rainy season. On January 27, 2009, we commenced our program to test the potential of the Guadalupe, Mirador and C7 formations.
All zones tested demonstrated excellent inflow characteristics. The Guadalupe zone tested wet. Two Mirador zones, with a combined net pay of 10.5 feet, were swab tested together and recovered 750 bbls of formation fluid at a stabilized 20% oil cut. The well was then completed in the C7 formation and began flowing oil in commercial volumes. We intend to flow the well through temporary facilities, and then install a progressive cavity pump to conduct a longer-term production test. We will then move the completion rig to Mapache-1, which appears to have similar potential in the two Upper Mirador sands which were oil bearing in Mapache-2. Later this spring, we plan to acquire an additional 91 square kilometres of 3D seismic adjacent to our existing 3D seismic data on the Mapache Block. These two seismic surveys will allow us to evaluate approximately 30% of the 107,861 acre Mapache Block.
The ultimate potential of the Mapache Block will be further refined through revaluation of the existing seismic data, additional seismic acquisition and additional delineation drilling.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production Company producing oil in Colombia with 16 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 76.5% owned by Petrobank (TSX: PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of capital projects and the results of operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701
--------------------------------------------------------------------------------
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
Petrominerales Corcel-D1 Mirador Recompletion Produces 8,770 BOPD
Monday February 2, 12:13 am ET
http://biz.yahoo.com/ccn/090202/200902020509379001.html?.v=1
BOGOTA, COLOMBIA--(Marketwire - Feb. 2, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce that our Corcel-D1 exploration well is producing 8,770 barrels of 26.4 degree API oil per day, at an 8% water cut, from 56 feet of high quality sand, following a successful recompletion in the Mirador formation. Corcel-D3, the next well in our multi-well Corcel drilling program, was spudded on January 31.
Orito
Our Orito field production is still ramping up following the cessation of the general strike in the Putumayo province. We have also successfully finished drilling Orito-163 and will then spud Orito-171. After Orito-171, we intend to temporarily suspend our Orito drilling program as part of our strategy to refocus capital deployment to the highest value-add areas of our portfolio during this period of lower commodity prices.
Neiva
We are currently drilling the eighth well in a multi-well drilling program at Neiva. We have completed and placed two of these new wells on production using a new completion technique. Initial rates from these first two wells represent a significant improvement over historical performance. Together these two wells have added an incremental 911 bopd, in which Petrominerales has a 69% working interest. Company interest production at Neiva is now 1,050 bopd.
Current Production
With the Corcel-D1 well back online, early success at Neiva, and some production still off-line at Orito, the Company is now producing in excess of 25,000 bopd. We will provide a further operational update following the approval of our independent reserve report, which is expected by the end of February 2009.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production Company producing oil in Colombia with 16 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 76.4% owned by Petrobank (TSX:PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of capital projects and the results of operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701
--------------------------------------------------------------------------------
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
Petrobank's January 2009 Corporate Presentation
http://www.petrobank.com/webdocs/presentations/PBG_2009_Jan.pdf
The following Quarterly Report Provides a Concise overview of All the Company's Assetts.
A great primer on what this investment offers.
http://www.petrobank.com/webdocs/news_2008/PBG_2008_08_13_Q2_2008.pdf
futrcash
Nice Well!...Huh?
Bought me a starter position of 100 shares @ the bell.
My first buy of anything over the last 6 months!
If the Thai oil sands extraction process really works,Petrobank could become the largest publicly owned Oil Company on the planet!
futrcash
Petrominerales Brings Corcel-D2 Well on Production at 4,500 BOPD
Wednesday January 21, 9:53 pm ET
http://biz.yahoo.com/ccn/090121/200901210507735001.html?.v=1
BOGOTA, COLOMBIA--(Marketwire - Jan. 21, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce that our Corcel-D2 exploration well is producing 4,500 barrels of 26 degree API oil per day from 46 feet of high quality sand in the Mirador formation, at a 50% water cut.
The Corcel-D2 well was initially drilled to a total depth of 12,762 feet and completed with a seven inch liner. The liner cementing operation was unsuccessful and attempts to cut and pull the liner from the well were also unsuccessful. The liner was cement squeezed and abandoned and a sidetrack was drilled approximately 15 feet away from the original wellbore where a new seven inch liner was run and successfully cemented.
The initial 50% water cut is likely a result of crossflow from water bearing zones encountered in the original wellbore and as a result does not fully reflect the ultimate initial oil production potential of the Mirador formation. Unfortunately, it is not feasible to attempt additional remedial work on the original wellbore.
The Corcel-D1 well is presently offline and we are currently performing a workover to complete the Mirador formation following premature water break through in the Guadalupe perforations. We plan to have Corcel-D1 back on production early next week. We will then spud the Corcel-D3 well.
With the Corcel-D1 well offline, and our Orito field production still ramping up following the cessation of the general strike in the Putumayo province, the Company is presently producing approximately 17,800 BOPD. We will provide a further operational update following the approval of our independent reserve report, which is expected at the end of February 2009.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 76.4% owned by Petrobank (TSX:PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of capital projects and the results of operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701
--------------------------------------------------------------------------------
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
Petrominerales Resumes Operations at Orito and Las Aguilas
Tuesday January 6, 8:26 am ET
http://biz.yahoo.com/ccn/090106/200901060505169001.html?.v=1
BOGOTA, COLOMBIA--(Marketwire - Jan. 6, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce that the strike affecting our production and drilling operations at the Orito field and operations at our Las Aguilas exploration block has been lifted. Ecopetrol, the Orito field operator, has commenced the process of reactivating production from the field. It is expected that Orito production will ramp back up over the next week. We are also mobilizing personnel to the area and plan to recommence drilling and workover operations within the next few days.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins of Colombia and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 76.4% owned by Petrobank (TSX:PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of capital projects and the results of operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701
--------------------------------------------------------------------------------
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
>Absolutely and you find the greatest stocks. 500 shares is not enough; should have bought more.
And yes, Peak Oil is definitely on the way. Petro is great for this environment.
sumi
Nice Interview...If Petrobank's Heavy Oil Technology truly works as hoped,It could be a game changer for North American Oil security!
futrcash
Alan Knowles, Haywood Securities: Finding that Elusive Bottom
Source: The Energy Report
12/29/2008
http://www.theenergyreport.com/pub/na_u/641
Haywood Senior Oil and Gas Analyst Alan Knowles says we haven’t seen a bottom yet, advising investors to watch the large companies when the market strengthens again. Meanwhile, demand continues to slide as OPEC plays catch up on a series of announced production cuts. And a pilot project involving a new oil sands technology is exceeding expectations; Knowles explains the significant advantage of upgrading oil in situ and foresees a bright future for the company that patented it.
The Energy Report: Alan, do you think we have seen the bottom yet? When we get to the bottom, how will the oil and gas sector fare against other sectors in terms of rebounding stock prices? Will they lead it, be in the middle, or lag?
Alan Knowles: I know a lot of investors were buying stocks at the end of November because they thought they were seeing the bottom then and we saw some strength in the market at the time. And as we know the market has fallen drastically since then. I don’t think we have all the bad news yet.
As far as the energy businesses go, the oil business will be stronger. You need oil to do your business. The economy thrives on the use of hydrocarbons, as you well know. I have had fund managers ask me ‘what does this company look like with a $30 oil price?’, and so that is the kind of concern that’s out there. Until we have some clear picture of where the bottom is, share prices will continue to erode. I don’t think there’s too much concern over whether prices will come back over time. They definitely will; it’s a cyclical business. You should be forecasting based on the future expectations.
Right now, the spot price is $43 to $45; but if you go out to December 2010 it is $65, and December of 2011, it’s $71. So, that’s the kind of trendology, if you will, that people think is going to happen here. It might happen sooner because these same contracts that are $45 today were $148 last summer, so while the futures indicate current market sentiment, they are not the best indicator of future prices. The contract that we’re talking about right now is the one for January delivery. Futures are not by any means a crystal ball on the world.
TER: As an analyst, what are you looking for to determine when we hit a bottom? What’s the formula you’ll use?
AK: Well, it’s not a formula. I’d like to see some clear indications that buyers are coming back into the market, and we don’t see that right now. There’s limited buying. I know a lot of funds are continuing to buy a little bit every day, and they’re averaging down, essentially, with the view that in two years anything you buy today is going to be doing very well. But you want to make sure you buy a company that is going to be around in two years; hence, the balance sheet focus.
So many investors have a one-, two- or maybe a three-month investment horizon. We were a little spoiled with the kind of strong returns one could achieve in the last several years. Now, I think you have to get back to the fundamentals and the longer-term view on life and you can do quite well. But if you try to make a lot of money in a short period of time in this market, you’re going to get hurt.
TER: If someone has a longer-term horizon, would this seem like a good time to start getting in? I mean how much more can oil go down?
AK: Well, people said that same thing when oil was $55, and now it’s $10 less. So, there’s nothing wrong with waiting for a clear bottom to be formed, and then maybe you wait until the stocks start to come up or the oil price starts to rise. But at least you’re not going to be putting money into a down market. It may be well into the new year before this point is reached. There’s still selling pressure; as well there will be a lot of tax-loss selling going on between now and the end of the year.
And I think that’s going to put some—let’s call it arbitrary—downward pressure on the stocks that has nothing to do with the fundamentals, because, at the beginning of the year, there were a lot of people who had a lot of capital gains. If they realized those capital gains, there’s going to be tax-loss selling, and then you will consolidate your stocks into positions that you think will rise the quickest when the market starts rising again.
TER: As I look at the oil business, the price of crude oil is down to $43 today, which I believe is up a little bit from Friday. I look at the U.S. dollar appreciating, and OPEC decreasing production. What’s going on here?
AK: Well, OPEC is reducing production, but so far they’re probably not even at the reductions they made at the September and October meetings, at least it hasn’t been verified. And then on the demand side, we’re seeing the OECD demand decreasing, and the current estimates are that non-OECD demand is increasing by an offsetting amount so that year-over-year in ‘09 you’re looking at no overall demand growth. But the problem is that I think the OECD demand estimates are probably too optimistic. It probably should be lower. And the same with the non-OECD, so the net-net is going to be (the more likely scenario) a decrease in demand in ‘09 over ‘08—a situation we’ve experienced only once since World War II.
TER: Is this decrease in demand being fueled (pardon the pun) by the recession, or by Green/Alternative Energy coming into play? What’s causing it?
AK: It’s not the Green Movement; in fact, with the decrease in commodity prices, the alternative energy efforts are actually struggling because, in the current environment, people are less willing to commit dollars to the more-expensive energy options. The recession has certainly had something to do with it. Prior to this, the $140 oil did set in motion the demand destruction—you saw people driving less and costs went up for airline flights, so people weren’t flying as much. Now that the price has come down, that ball had already been set in motion, and then it gets compounded (in the U. S., particularly) by the banking situation, which has caused a lot of destruction of wealth, so people just aren’t buying goods. Then the lack of buying goods put people out of jobs, people don’t buy as much, goods aren’t being transported around the country, and transportation is one of the single largest uses of hydrocarbons.
TER: So, the fact that gas pumps are down to $2 a gallon isn’t so much the cause for the drop in oil price, but really the drop in transportation of goods around the country?
AK: Well it’s everything, and Europe pretty well followed. Europe had a lot of the same problems as the U.S. with the financial sector and it similarly suffered, having to put a lot of money into the banking sector. So it’s not just the falling prices; if that were true people would be driving again.
Demand is down, therefore, car sales are going to be down—and all those goods get shipped around the continent. And then demand for goods from China, which obviously makes a lot of goods that are shipped around the world (including North America), are going to be down. Consequently, China’s going into an economic downturn and its demand for hydrocarbons is down as well.
TER: Everyone keeps talking about China as somewhat decoupling from the Western economies because it has a growing middle class, and that middle class is starting to demand things like inexpensive cars. Do you see that taking up the slack of the lack of driving and transportation in the Western countries?
AK: No. There’s been a downturn there as well. For example, if a company—Wal-Mart is a good example— if companies are not making goods to be sold by Wal-Mart around the world, then they have to lay off people in China. So people are getting laid off in China I am sure, and they have had to put stimulus packages into their system as well, although not to the same degree as in North America. And so their economy is still on the positive side, but not growing like it was.
TER: Alan, when you talk about the Saudis "getting their house in order," in terms of verifiable decreases in oil production, do you, as the analyst, really see that happening? Do you trust their statements—that they are going to decrease production; and how do we verify that, going forward?
AK: It’s not just the Saudis—it’s OPEC and all the countries in OPEC. How do we verify that? Well, you track tanker movements around the world; that’s one of the most visible ways for third-parties to do that. To the end of October, they were off side by about 2 million barrels a day from where they said they were going to be, and by the end of November, average production was still off side by a million barrels a day. So, for them to come out here two weekends ago and announce another cut when they really weren’t there yet on the previously announced cuts—their credibility would have suffered. And their credibility is an issue, so there is very much a “wait-and-see, and are-you-going-to-do-it–or-not.” I think that’s why they’re waiting until their meeting coming up here in less than two weeks now. [Note: a week after this interview OPEC announced an incremental 2.2 mmbbls/day cut in production taking the total for the past three months to 4.2 mmbbls/day].
TER: Once they cut the amount, how quickly can they cut the production? Is there normally a delay or can it happen overnight?
AK: Well, once they announce it, it’s allocated to the 11-member countries of OPEC, excluding Iraq. And it’s up to each country to cut its pro rata share of, let’s say, that 1.5 million split between the 11 countries. Now, the Saudis are the biggest, and they seem to have the most flexibility. They are the swing producer within the group, but every country is supposed to do its own share. You can’t just shut in the wells, or even a field quickly. There are procedures to go through to shut in the wells properly. Otherwise, you could damage the well or the reservoir, which could cause some problems when you do want to bring back production.
But assuming that they went from the end of October—from the October average to the end of November—let’s say that they decreased their production evenly through the month as they were shutting these wells, as I mentioned. They’d still be off side by 5-700,000 barrels a day from their 2.0 mmbbls/day target. I think they probably are using the two weeks following that last meeting before the next to get as close as they can to their targets to have some credibility for the additional cuts.
There is no doubt that the Gulf States are particularly hurting with these low prices. They have significant ongoing infrastructure projects in their countries. Costs have gone up for their new production; old production has low costs associated with it, but anything new has a higher cost especially infrastructure projects or grassroots.
TER: That’s true worldwide; new production is going to cost more than the older. That’s not just a Saudi Arabia issue.
AK: No, it’s not, but a lot of people associate Saudi Arabia with costs like $5 or so a barrel and that is the case for their old production. But in terms of the new production, they are faced with the same cost pressures as the rest of the world. There is a sense, I guess, among people who don’t spend too much time on it that their cost base is quite low. . .and it’s not for new production.
TER: Do you agree with the concept of peak oil, and have we gotten there yet or do we have numerous decades to go?
AK: Well, I do agree with the peak oil theory, and there’s evidence that it’s happening. The reason we got to $140 oil is the supply and demand numbers were coming together. There wasn’t a lot of excess supply. Let’s say there was an extra 1.5 to 2 million barrels between OPEC nations, but that isn’t necessarily easily brought on stream. It would be there, but it might require some capital, and there is some question whether those estimates are even valid as to how much extra there is. But the point is that you are getting to a level that it’s hard to replace natural declines.
As a result of this low price, a lot of large projects are either outright cancelled or deferred. And we have seen a lot of that in the oil sands; probably, when all is said and done, we might see the deferral of between half a million and a million barrels of production. The world is producing 86 million barrels a day now; the decline rate in that production is 6% to 7%. So, just to keep production flat, you have to add 5 to 5.5 million barrels of production a day per year. In order to meet demand forecasts for 2030, you have to get up to 106 million barrels a day. When you’re deferring projects that add up to the numbers I just mentioned, you’re going to be hard-pressed to come even close to those numbers because once a project is deferred, it’s going to take a year or two just to get back on the drawing board and for the boards of directors to approve it again because the costs will be different.
TER: If everyone recognizes that our production rates are diminishing and our demand, even in a slowdown, is increasing and we have a replacement issue, eventually the oil price has got to go up. Why wouldn’t that future demand cause the current price to go up?
AK: Because the market really tends to pay attention to the near term and near-term prices with decreasing demand, we’re probably looking at low prices for the next year, at least, if not two years. But then when demand does come back, economies strengthen and demand comes back around the world, we’re going to be in an even tighter situation than we were last summer because so many projects—even conventional drilling, a well here, a well there—producers are not going to drill them because at $45 it doesn’t make economic sense to drill those wells. So, it will mean the supply and demand balance will become even tighter and the two will probably get off side even quicker than what happened this last time because projects that were in the queue here a year ago aren’t in the queue now.
TER: So, it sounds like we’re going to yo-yo a bit. We’re going to go from our $140 in July down to something low, and then back up to $140 or more within a couple of years when the economies start to turn around.
AK: Yes, I am not sure how many years it will take. It could take five years. It might even take a little longer, but because the bigger projects have longer lead times, they’re the ones being cancelled; we are running the risk of being whipsawed significantly on the supply side.
TER: Now, I think it was Exxon that came out after Q3 with record quarterly profits. What’s to keep these big oil companies from financing these large projects?
AK: Well, first of all, that’s profits, not cash flow, and there are a lot of nuances into the earnings number that don’t translate into cash flow. So, these large companies—the really large companies—are generating a lot of cash flow, but they’re reinvesting a significant amount of that cash flow into the ground already. Exxon and BP, for example, had so much cash flow at the $140 price that they actually did build a significant cash reserve because they couldn’t spend the money they were making. But that will quickly erode because their capital commitments will continue at an oil price that is a third of those prices so they’re not going to have excess cash in a year or two.
There definitely will be M&A activity going on. Larger companies will acquire smaller companies that might be undervalued but, more importantly, are also a strategic fit for their operating areas or growth plans. But that’s not adding new production, remember. When you see companies acquiring other companies, that’s not adding new production; in fact, as far as the capital expenditures of those two companies, one plus one doesn’t equal two anymore, it might equal 1.5 because the two combined companies will drop projects off the table that separate companies would have done.
TER: Well, as an investor, I am looking at some of the companies you’re following, which range from trading on the New York or Toronto Stock Exchange to trading on the Toronto Venture. What should an investor start looking at—the producers or the explorers?
AK: When we start to see the market strengthen again (as I said, I don’t think we’re at the bottom yet), you want to watch the large companies. The larger companies tend to be the first ones to respond positively when the market turns, followed by the medium and then the smaller companies.
TER: Would you expect to see some of these smaller companies go bankrupt or will they be acquired?
AK: No, I don’t think the larger companies are going to buy a company just because it’s cheap. They’re going to buy companies that offer some strategic value to them and fit with the existing assets. Bankruptcy might not be in the cards, but we’ve already seen quite a few announcements of companies that are seeking strategic alternatives. So, they might not actually go bankrupt; they will be able to service their debt, for instance, but growth is going to be muted. Ultimately some weaker companies will be on the edge of bankruptcy but I expect the assets will be acquired, but now at a discount price.
TER: So, as an investor, we look at this like some of the mining industries where there’s an expectation that many will kind of go away. When it comes back around, there is at least a potential that these smaller companies will eventually make a turnaround with the increase in the economy.
AK: Right now, the equity markets are not really available to any of these companies, and the debt markets are selectively available depending on the quality of the assets and the management; so if a company is not at its bank line already, it has more flexibility to grow. So, you shouldn’t just go in and just buy the sector. You have to be careful which names you pick; you want to pick companies that have quality assets and low costs associated with running that company (i.e., operating costs, admin costs and the interest costs—I’m talking about the cash costs here). In this environment, a company fully extended on its bank line isn’t likely to get that line increased; in fact, it could be decreased, depending on how the banks look at their risk going into the first quarter. So, you want to be looking at companies that have some, if not a lot of, flexibility on their balance sheets going into 2009.
TER: Can you share with us some of the companies that you feel qualify for those three areas you just mentioned—quality assets, low cash costs and bank line availability?
AK: Well, in the large caps, I think both Nexen (NYSE: NXY) and Talisman Energy Inc. (TLM) have that going for them. On the medium size, Petrobank Energy (PBG.TO), which we cover, has room on its bank lines and has a quality asset base that is generating a lot of cash, even in a $45 oil environment. TriStar Oil and Gas (TOG.TO) is another company that we cover that is in that boat. Crescent Point (CPG-UN.TO) has a very good balance sheet and quality assets. And on the internationals, Petrominerales (PMG.TO) right now appears to be there—they’ve got some very positive drilling successes; they’ve got more drilling to do, and they’ve got high net-back oil production even in a $45 oil environment. So, having said that, in a $45 oil environment, all these companies will be reducing their capital investment due to, as I said earlier, the expectations of the oil price coming back in a year or two. I think a lot of these companies will look at the rate of return on the investment now versus a higher oil price and choose to defer drilling wells for now.
TER: Let’s say that oil goes back up. What is a reasonable number to start drilling again—$65, $80?
AK: I think $65 would be a good number. I think Crescent Point, Petrobank, TriStar, and Petrominerales can really do something with $65 oil because of their low royalty, low operating costs. Petrobank, Crescent Point and TriStar are involved in the same play here in Canada, called the Bakken play, and that’s light oil, so it receives quality pricing. The first year’s royalty on those wells is only 2.5%, and the operating costs are in the $8 to $9 range, generally. Even in a $45 oil environment, they have a decent net back but the rate of return on a well at $65 versus $45 is significantly better; so, they wouldn’t stop drilling but rather slow it down in a $45 oil environment.
TER: And with the $45 oil, you indicated that the various oil sands projects are not really moving forward; do they move forward at $65?
AK: $65 causes you to start thinking seriously about them, but you have to see higher prices than $65, especially if there’s an upgrader involved. When demand goes down, then the discount from heavy to light oil is larger, which is what we’re experiencing now. So, the heavy oil producer is seeing a disproportionate decrease in its oil price than a light oil producer.
TER: And the companies you mentioned before—Crescent Point, Petrobank, and TriStar—are all light oil?
AK: Yes.
TER: Very good.
AK: Well, Petrobank does have an oil sands project, but it also has an oil sands technology, which is why it’s more complicated than the other companies mentioned. The company’s oil sands technology is in the pilot stage now, but all indications are that that pilot is working. The oil is upgraded in situ in this process, so instead of producing 9- or 10-degree oil, it produces 20- to 21-degree oil—a significant advantage; and capital costs are a third to a quarter of competing projects. This is a new technology and it is getting a lot of attention now, especially in the lower oil price environment. And Petrobank owns the technology; the company has already signed two contracts for joint venture agreements with third parties to use this technology in their fields. It’s not just an oil sands technology, by the way; you can use this technology in any heavy oil field.
TER: That is quite an advantage.
AK: It is very significant, and it provides the company leverage against the technology in the future. The value of the technology for the company increases as more and more companies do a joint venture with them, and the technology becomes more proven. So far Petrobank’s deal has been to retain a 50% working interest in, and a 10% override on, the other company’s project. The benefit of that, of course—it adds to the company’s growth. The other benefit is that it also recovers 70% of the oil in place in the reservoir, and a competing or just a standard expectation is somewhere between 25% and 40%, depending on the project. So they get almost twice as much oil out of the ground from their well than a competing project would get from their well.
TER: That is substantial. That’s amazing. So, it’s still officially in pilot, and they’re actually going out and doing these joint ventures? You mentioned that they had two that they’re doing.
AK: Yes its still is a pilot project. But the pilot has produced above expectations, and it has upgraded the oil. I guess now you really want to see that pilot kept on stream for an extended period of time, say six months, at least. But so far, it has been very positive; Petrobank has signed two projects—one with Duvernay Oil, which was recently taken over by Shell, and another with a company in Canada called True Energy Trust (TUI-UN.TO). It has signed confidentiality agreements with most South American state oil companies—and there’s a huge amount of heavy oil in South America; and it has ongoing negotiations with other companies besides the state oil companies in South America.
TER: Is this technology capital intensive, meaning to replicate it across several wells, it’s hundreds of thousands of dollars, or is it like pure technology where it’s highly leverageable?
AK: Like I was saying, the technology is actually cheaper; for instance, the estimates are that this will cost $20,000 per producing barrel to put a project together, and it likely will be less, whereas your average SAGD (steam assisted gravity drainage) project is $60,000 per producing barrel. So, it’s a third, and if you add an upgrader, you can get into the $80–$100,000 per producing barrel. And so you’re comparing $20,000 versus those higher numbers, depending on the project.
TER: Wow, these guys could make it just on the technology.
AK: They could. They have this Bakken play in Saskatchewan that I mentioned to you, which by itself probably justifies the current share price because in this market where everyone is beaten up, and the market is not paying for anything unless you actually have it physically in hand, you have it on production. So, our view is this technology is not in the share price at all right now.
TER: That’s going to be amazing. I was wondering what small cap names you cover and if you had any names in that category that you like right now.
AK: Well, Petro Vista Energy (PTV.V) is one that we’ve been watching and I like it because of the inventory of assets it has and the opportunities those assets present for the company right now. Due to their size however, they do have some exposure on their balance sheet compared to their desired level of activity.
TER: Aren’t they in Brazil?
AK: They’re in Brazil and Colombia, and the Brazil project is one that is low risk and can provide a good return that is average. The Colombian assets provide a little bit higher risk but also potentially a greater rate of return. Petro Vista falls into the smaller cap group; and, in terms of funding, its pockets aren’t as deep as a larger company, so it’s in the process of establishing a cash flow base. Its drilling and exploration activities are being funded from the cash the company currently has on hand plus possible asset sales.
Alan Knowles joined Haywood in 2000, having previously worked as a senior oil and gas analyst with two Canadian investment firms. In addition, he has held senior financial positions with Petrorep Resources and Sceptre Resources and has over 20 years of oil and gas industry experience. As a key member of Haywood's oil and gas research team, Alan covers a broad mix of energy producers that range from senior to intermediate to emerging companies.
Petrobank Files May River Application and Appoints Neil McCrank to Board of Directors
Thursday December 18, 12:54 am ET
http://biz.yahoo.com/ccn/081218/200812180503607001.html?.v=1
CALGARY, ALBERTA--(Marketwire - Dec. 18, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) is pleased to announce that we have today filed our application for the May River Project with the Energy and Resources Conservation Board and Alberta Environment.
The May River Project is our 10,000 bopd THAI(TM) commercial demonstration project to be developed on our Whitesands oil sands leases located two kilometers from the current Whitesands pilot project site. We have initiated the front end engineering and design, which is based on a repeatable modular design enabling a staged development plan for future expansions. This project will also incorporate an integrated facilities design with power generation from the recovery of produced gas and sulphur recovery utilizing the CrystaSulf® technology. Ultimately, May River is planned to be built in phases, to a capacity of up to 100,000 bopd of partially upgraded bitumen.
In addition, Petrobank is very pleased to welcome Neil McCrank to our board of directors. Mr. McCrank has a long record of public service in Alberta and Ontario and was the Deputy Minister of Justice and Deputy Attorney General for Alberta from 1989 to 1998. From 1998 to 2007, Mr. McCrank was the Chairman of the Alberta Energy and Utilities Board. Since then, he has been consulted with respect to regulatory matters by all levels of Government in Canada, international Governments, and numerous regulatory organizations and was appointed as Counsel to Borden Ladner Gervais LLP in June of 2008. Mr. McCrank is a Professional Engineer in Alberta and a member of the Law Societies of both Alberta and Ontario.
Petrobank Energy and Resources Ltd.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units and a technology subsidiary. The Canadian Business Unit is focused on developing a solid production platform from the Bakken light oil play in southeast Saskatchewan, and exploiting a large undeveloped land base through the application of new technology to large oil and gas resource opportunities. The Latin American Business Unit, operated by Petrobank's 76.4% owned TSX-listed subsidiary, Petrominerales Ltd. (TSX:PMG - News), is a Latin American-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins of Colombia and 2.6 million acres in the Ucayali Basin of Peru. Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally. THAI(TM) and CAPRI(TM) are registered trademarks of Archon Technologies Ltd., a wholly-owned subsidiary of Petrobank.
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: applicable regulations, required regulatory approvals, general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrobank assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrobank Energy and Resources Ltd.
President and Chief Executive Officer
(403) 750-4400
Chris J. Bloomer
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief
Operating Officer, Heavy Oil
(403) 750-4400
Corey C. Ruttan
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Financial Officer
(403) 750-4400
R. Gregg Smith
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Operating Officer, Canada
(403) 750-4400
Email: ir@petrobank.com
Website: www.petrobank.com
--------------------------------------------------------------------------------
Source: Petrobank Energy and Resources Ltd.
Petrominerales Awarded Two New Exploration Blocks and Tests Corcel-D1 Well at 3,800 bopd
Thursday December 4, 8:56 pm ET
http://biz.yahoo.com/ccn/081204/200812040501347001.html?.v=1
BOGOTA, COLOMBIA--(Marketwire - Dec. 4, 2008) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce that, following the Colombian Mini Round 2008, we have been awarded Blocks 25 and 31, in the Llanos Basin of Colombia. These blocks are on trend with both the "super giant" Cusiana-Cupiagua fields and our prolific Corcel Block. Block 25, immediately southwest of Cusiana-Cupiagua, covers 169,733 acres and our first phase work commitments will include shooting 141 square kilometres of 3D seismic and drilling one exploration well. The block currently has 675 kilometres of existing 2D seismic from which we have already identified several leads. Block 31, immediately north of our Corcel Block, covers 163,833 acres and our first phase work commitments will include shooting 143 square kilometres of 3D seismic and drilling two exploration wells. The block has 640 kilometres of existing 2D seismic from which we have also identified several leads. The first work commitment phase for both blocks has a term of three years. Both of these blocks will be subject to a standard Colombia National Hydrocarbon Agency ("ANH") contract (8% initial royalty) plus a further state participation of 1% of gross production, payable to the ANH. The contracts are subject to the final approval of the Directive Council of the ANH, and we anticipate final execution will occur in January, 2009.
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Corcel-D1 - Initial Test Results
Our Corcel-D1 exploration well has just been brought on-stream and is currently producing at 3,800 barrels of oil per day ("bopd") of 22 degree API crude oil at a 0.8% water cut from 35 feet of sand in the Guadalupe formation. Based on log and core analysis, the well has an additional 67 feet of net pay in the Mirador and Lower Sand-1 intervals which are currently not completed. Over the next two weeks we intend to seek regulatory approval to complete the Mirador interval in this well, which should allow us to produce the two zones comingled at a significantly higher rate.
The Corcel-D1 well was our first well of a multi-well drilling program on the Corcel D structure. We are now drilling the D2 well and expect to reach total depth within the next two weeks. We then plan to drill the D3 well on the same pad and then drill additional exploration wells on the Corcel E, F, B and G structures, as well as an exploration well on the northeastern portion of the block, as our program progresses through 2009.
Production Update
Our production averaged 14,150 bopd in the month of November. Production has been impacted by the ongoing general strike in the Putumayo region that has resulted in approximately 3,500 bopd of production at Orito being shut-in since November 21, 2008. Including our Corcel-D1 well, production is now approximately 18,000 bopd.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins of Colombia and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 76.4% owned by Petrobank (TSX:PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of capital projects and the results of operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701
--------------------------------------------------------------------------------
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
Petrobank's Whitesands Expansion Approval Advances
Thursday November 27, 9:02 pm ET
http://biz.yahoo.com/ccn/081127/200811270499982001.html?.v=1
CALGARY, ALBERTA--(Marketwire - Nov. 27, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) announces that it has today received copies of two letters (the "Correspondence") from the Energy and Resources Conservation Board ("ERCB") to objecting parties that indicate that the ERCB has decided that the three well expansion at Petrobank's Whitesands site (the "Expansion") has met all regulatory requirements and the ERCB will issue their approval document in due course ("Decision").
The objective of the Expansion is to further demonstrate Petrobank's THAI(TM) technology, an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil. The Expansion will allow Petrobank to draw upon the knowledge and know-how gained through the development of our existing Whitesands project. We are also excited about this opportunity to further utilize our proprietary CAPRI(TM) technology, our revised down-hole completion design and longer well lengths.
It is one of Petrobank's core values to communicate openly and with respect for individuals, communities and cultures. We began our consultation with applicable regulatory agencies and other stakeholders on the Expansion application ("Application") in mid 2007 and ultimately filed the Application in December 2007. During 2008, Petrobank responded to routine supplementary information requests from the ERCB and Alberta Environment. During this same period a comprehensive consultation program was ongoing with all potential stakeholders. Two groups intervened into the Application process with broad letters of objection which delayed the regulatory Decision. In the Correspondence, the Board determined that the rights of the two groups were not "directly and adversely affected", that they did not have standing, and dismissed their objections.
The delay in receiving the Decision was not related to the technical merits of the Application. Petrobank views this Decision as validation of our values and strategy to consult, rather than compromise the process by making extraordinary financial payments to intervening parties to facilitate the withdrawal of objections and thereby shortening the regulatory process. Petrobank communicates widely on our development plans and works with stakeholders that may potentially be affected by our activities in a clear and transparent manner, in accordance with the Government of Alberta's First Nation Consultation Policy on Land, Management and Resource Development, issued in May 2005. Petrobank will continue to maintain frequent contact and work with the relevant regulatory authorities to secure all necessary permits and to meet any requirements forthcoming in the formal approval document. Following receipt of the ERCB approval document, Petrobank plans to proceed immediately with the drilling of the Expansion wells. The Correspondence can be viewed on Petrobank's website at http://www.petrobank.com/hea-whitesandsproject.html. To provide further clarity for shareholders, within the next week, Petrobank will also post to this link all relevant correspondence and documents relating to the Application process.
While we are excited to use the Expansion at the Whitesands site to further demonstrate our THAI(TM) technology, we are concerned with the length of time this regulatory process has taken. However, we are satisfied with the Decision reached by the ERCB as it paves the way for our Expansion project and future projects to prudently develop Alberta's oil sands using environmentally sustainable and cost effective technologies.
Petrobank Energy and Resources Ltd.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units and a technology subsidiary. The Canadian Business Unit is focused on developing a solid production platform from the Bakken light oil play in southeast Saskatchewan, and exploiting a large undeveloped land base through the application of new technology to large oil and gas resource opportunities. The Latin American Business Unit, operated by Petrobank's 76.4% owned TSX-listed subsidiary, Petrominerales Ltd. (TSX:PMG - News), is a Latin American-based exploration and production company producing oil from three blocks in Colombia and has contracts on 14 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally. THAI(TM) and CAPRI(TM) are registered trademarks of Archon Technologies Ltd., a wholly-owned subsidiary of Petrobank.
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: applicable regulations, required regulatory approvals, general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrobank assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrobank Energy and Resources Ltd.
President and Chief Executive Officer
(403) 750-4400
Chris J. Bloomer
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Operating Officer, Heavy Oil
(403) 750-4400
Corey C. Ruttan
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Financial Officer
(403) 750-4400
R. Gregg Smith
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Operating Officer, Canada
(403) 750-4400
(403) 266-5794 (FAX)
Email: ir@petrobank.com
Website: http://www.petrobank.com
--------------------------------------------------------------------------------
Source: Petrobank Energy and Resources Ltd.
Petrominerales Announces Temporary Suspension of Operations at the Orito Field and Las Aguilas Exploration Block
Friday November 21, 7:05 pm ET
http://biz.yahoo.com/ccn/081121/200811210499006001.html?.v=1
BOGOTA, COLOMBIA--(Marketwire - Nov. 21, 2008) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News) announces that, in conjunction with the suspension of certain operations by Ecopetrol, the Colombian national oil company and the Orito field operator, our drilling and completion operations at the Orito field have been suspended temporarily, pending resolution of a general strike currently ongoing in the Colombian Department of Putumayo. These measures also apply to our Las Aguilas exploration block. We have released all non-essential personnel from the areas and have taken appropriate measures to secure property, equipment and the integrity of the wells where our drilling and completion operations have been suspended.
We will continue to take joint measures with Ecopetrol that maintain the safety of both our personnel and of our contractors and limit any potential damages. The Colombian Government has indicated that they expect that the President of Colombia will be convening a meeting with the Mayors of the municipalities on Tuesday to address the strike. Petrominerales is in frequent contact with the appropriate Colombian government authorities.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production company producing oil in Colombia with 14 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Petrominerales is 76.4% owned by Petrobank (TSX:PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the temporary suspension of Petrominerales' operations at the Orito Field and Las Aguilas Exploration Block. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701
--------------------------------------------------------------------------------
Source: Petrominerales Ltd., Petrobank Energy and Resources Ltd.
Petrobank Enters Into Thai(TM) Royalty and Technology Licence and Joint Venture Agreement
Friday November 21, 1:51 pm ET
http://biz.yahoo.com/ccn/081121/200811210498878001.html?.v=1
CALGARY, ALBERTA--(Marketwire - Nov. 21, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) is pleased to announce that it has entered into a royalty and technology license and a joint venture agreement (the "Agreement") with True Energy Trust ("True") to apply Petrobank's patented THAI(TM) heavy oil recovery technology on portions of True's Kerrobert heavy oil property in Saskatchewan.
Under the Agreement, Petrobank will initially earn a 50% working interest in three sections of land in the Kerrobert Mannville heavy oil pool. Subject to regulatory approval, Petrobank and True will develop a two well project to demonstrate the THAI(TM) technology in the 10+ metre thick Mannville conventional heavy oil channel reservoir. Petrobank will earn an additional ten percent gross overriding technology royalty on True's share of all THAI(TM) production following a threshold reserve recovery.
Petrobank is also entitled to earn a 50% working interest in ten additional sections of True lands upon the expansion of the initial THAI(TM) project or development of another project on these lands, which Petrobank and True would develop jointly. In addition, Petrobank and True have established an area of mutual interest over thirty additional sections of land to jointly develop additional THAI(TM) projects.
Petrobank is excited about the opportunity to partner with True and bring the THAI(TM) technology to the conventional heavy oil resource base in Saskatchewan. Saskatchewan has billions of barrels of unrecovered heavy oil that could be efficiently captured using our THAI(TM) technology. This is Petrobank's second license agreement that expands our THAI(TM) technology into conventional heavy oil reservoirs and into a jurisdiction in Saskatchewan that is proactive in encouraging project development and facilitating the application of advanced technologies. Our project engineering and design has been advancing rapidly with respect to this project and, based on preliminary discussions with Saskatchewan government officials, we expect to have a prompt approval of this initial project and future projects in the Province.
"This is indeed a welcome announcement, particularly in these uncertain economic times, and a vote of confidence in the future of Saskatchewan's energy sector," Saskatchewan Premier Brad Wall said. "I congratulate the team at Petrobank for moving ahead with this innovative technology that promises development of Saskatchewan's conventional heavy oil resources in an environmentally responsible and sustainable way."
Petrobank Energy and Resources Ltd.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units and a technology subsidiary. The Canadian Business Unit is focused on developing a solid production platform from the Bakken light oil play in southeast Saskatchewan, and exploiting a large undeveloped land base through the application of new technology to large oil and gas resource opportunities. The Latin American Business Unit, operated by Petrobank's 76.4% owned TSX-listed subsidiary, Petrominerales Ltd. (trading symbol: PMG), is a Latin American-based exploration and production company producing oil from three blocks in Colombia and has contracts on 14 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally. THAI(TM) and CAPRI(TM) are registered trademarks of Archon Technologies Ltd., a wholly-owned subsidiary of Petrobank.
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrobank assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrobank Energy and Resources Ltd.
President and Chief Executive Officer
(403) 750-4400
Chris J. Bloomer
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Operating Officer, Heavy Oil
(403) 750-4400
Corey C. Ruttan
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Financial Officer
(403) 750-4400
R. Gregg Smith
Petrobank Energy and Resources Ltd.
Senior Vice President and Chief Operating Officer, Canada
(403) 750-4400
Email: ir@petrobank.com
Website: http://www.petrobank.com
--------------------------------------------------------------------------------
Source: Petrobank Energy and Resources Ltd.
Petrobank's output boosts profit
It was a pretty outstanding quarter for the company
Dina O'Meara, Calgary Herald
Published: Friday, November 14, 2008
http://www.canada.com/calgaryherald/features/energy/story.html?id=28b0645c-b9d1-4dfc-9bc1-07da0cbc1253
Strong production growth and stellar oil prices propelled third-quarter profits to record levels, PetroBank Energy and Resources Ltd. reported Thursday.
The oil and gas producer, known for piloting an innovative heavy oil recovery technology, saw net income shoot up to $123 million, from $20 million a year prior, as production from its Canadian and Colombian assets more than tripled.
Cash flow rose to $217 million, from $42 million a year prior.
PetroBank stands out from the crowd because its record cash flow resulted as much from increased production as from high oil prices year-over-year, said analyst Alan Knowles with Haywood Securities.
"A lot of the other producers have seen growth predominantly from the increase in oil prices," Knowles said. "(PetroBank has) done an excellent job adding production both in Canada and Colombia. Of course, everyone is facing a different commodity price environment, but they are operating in a low-cost, low-royalty environment in light oil, so they are in a good position compared to many of their peers."
PetroBank said approximately 85 per cent of its 18,365 barrels of oil equivalent in Canadian production was light oil from its Bakken play in Saskatchewan, which has lower royalty rates and operating costs than Alberta.
Operating under Petrominerales in Colombia, the company produced 12,485 barrels of oil equivalent per day.
Total production for the quarter reached 30,850 boepd, from about 10,000 the previous year.
"It was a pretty outstanding quarter for the company," said UBS Research's Andrew Potter.
"Sometimes the markets don't gettooexcitedwhenthingsarejust in line but when you look at the growth these guys have achieved year over year and you look at production and cash over earnings, it is pretty astounding."
The company should be able to continue raking in profits due to its holdings even with oil sliding to $60 a barrel from highs of $140 mid-year, analysts said.
The one shadow on PetroBank's otherwise strong performance was its White sands THAI/CAPRI heavy oil project.
"Their Canadian assets alone are moving quite strongly, along with their Colombian assets, but their Whitesands seem to dominate with investors and they don't get equal valuation with peer groups on their producing assets," Knowles said.
THAI, or Toe-to-Heel Air Injection, pumps into a well to spark combustion and heat up bitumen underground, making it thin enough to flow up through horizontal wells.
Equipment and production problems have delayed full operations, although PetroBank expects a full startup next week.
with files from dan healing
domeara@theherald.canwest.com
© The Calgary Herald 2008
Petrominerales to Acquire Interest in Peru's Block 126
Thursday November 20, 2008, 12:11 am EST
http://finance.yahoo.com/news/Petrominerales-to-Acquire-ccn-13627428.html
BOGOTA, COLOMBIA--(Marketwire - Nov. 20, 2008) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce that we have entered into agreements to acquire an aggregate 55% working interest in Block 126 in the Ucayali Basin of east central Peru.
Petrominerales will acquire a 45% interest in Block 126 from Veraz Petroleum Ltd. ("Veraz") and a 10% interest from a third party and will be designated the operator of the Block in exchange for total cash consideration of U.S.$0.6 million. Petrominerales will also provide a U.S.$9.0 million loan (the "Loan") to Veraz that will be used to fund their 45% share of expenditures in the next exploration phase, including the acquisition of 150 square kilometres of 3D seismic and 50 kilometres of 2D seismic. The Loan will be forgiven after the completion of the seismic program if Petrominerales chooses to continue as a 55% partner, otherwise Veraz will have the option to pay out the loan in cash or common shares of Veraz. The transactions are subject to the consent of Perupetro S.A.
Block 126 covers 2.6 million acres in the Ucayali Basin of east central Peru and comes with 1,200 kilometres of recently reprocessed 2D seismic. A discovery well on the Block tested oil in 1988 and was plugged and temporarily abandoned, due to completion problems. The 105,000 square kilometer Ucayali Basin has produced over 50 million barrels and is home to the giant Camisea gas/condensate complex. The underexplored Ucayali Basin possesses excellent exploration potential offering a variety of potential play types, multiple possible reservoirs and the presence of several source rocks within a sedimentary column of up to 16,000 feet. In addition to offering tremendous exploration potential, Peru has a compelling fiscal regime and an excellent business environment. This acquisition is a great addition to our already strong inventory of exploration and development opportunities in Colombia.
Petrominerales Ltd.
Petrominerales Ltd. is a Latin American-based exploration and production company producing oil in Colombia with 14 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Petrominerales is 76.4% owned by Petrobank (TSX:PBG - News).
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to transactions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrominerales Ltd.
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Corey C. Ruttan
Petrominerales Ltd.
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Jack F. Scott
Petrominerales Ltd.
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701
Petrobank Announces Another Record Quarter and Significant Production Increases
Wednesday November 12, 9:30 pm ET
CALGARY, ALBERTA--(Marketwire - Nov. 12, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) is pleased to announce record third quarter 2008 financial and operating results driven by strong production increases and superior operating netbacks.
THIRD QUARTER 2008 HIGHLIGHTS
(all comparisons are third quarter 2008 compared to the third quarter of 2007)
- Production more than tripled to 30,850 barrels of oil equivalent per day ("boepd").
- Production has now increased further to over 40,000 boepd.
- Canadian Business Unit ("CBU") production increased by 239% to 18,365 boepd and averaged 21,660 boepd in October.
- Latin American Business Unit ("LABU") production increased by 176% to 12,485 barrels of oil per day ("bopd") and has subsequently increased to 19,590 bopd.
- Funds flow from operations increased by 412% to $216.7 million ($2.36 per diluted share).
- Net income increased by 487% to $123.2 million ($1.35 per diluted share).
- Strong operating netbacks of $84.95 per boe in the CBU and $90.44 per barrel in the LABU.
- Drilled 61.6 net Bakken wells during the quarter, on pace to exceed our 2008 goal to drill 154 net Bakken wells.
- Repurchased 298,400 common shares.
FINANCIAL & OPERATING RESULTS
The following table provides a summary of Petrobank's financial and operating results for the three and nine month periods ended September 30, 2008 and 2007. Consolidated financial statements with Management's Discussion and Analysis ("MD&A") are available on the Company's website at http://www.petrobank.com and will also be available on the SEDAR website at www.sedar.com.
[table in following link]
http://biz.yahoo.com/ccn/081112/200811120497014001.html?.v=1
Petrominerales Announces Another Record Quarter, Production Increases and New Corcel Discovery
Thursday November 6, 7:32 pm ET
BOGOTA, COLOMBIA--(Marketwire - Nov. 6, 2008) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG - News), is pleased to announce record third quarter 2008 financial and operating results driven by a strong 176% increase in oil production.
HIGHLIGHTS (U.S. dollars, except where noted)
- Average crude oil production increased 176% to 12,485 barrels per day ("bopd") compared to the third quarter of 2007.
- Production is now 19,590 bopd including production from our recently completed Corcel-C3 well.
- Petrominerales will be casing the Corcel-D1 well as a new pool discovery and will immediately move to drill the D2 and D3 wells.
- Operating costs have decreased from $10.75 per barrel in the second quarter of 2008 to $8.02 per barrel in the third quarter.
- Superior operating netbacks of $86.66 per barrel reflecting a 53% increase over the third quarter of 2007.
- Funds flow from operations increased by 288% to $78.3 million ($0.75 per diluted share).
- Net income increased by 466% to $58.0 million ($0.57 per diluted share).
- Strong financial position with net working capital of $55.0 million at September 30, 2008, an undrawn credit facility with an $80 million borrowing base and strong cash flows.
- Repurchased 701,800 common shares.
- Repurchased convertible debentures with a face value of $15.5 million for $9.4 million.
FINANCIAL & OPERATING RESULTS
The following table provides a summary of Petrominerales' financial and operating results for the three and nine month periods ended September 30, 2008 and 2007. Consolidated financial statements with Management's Discussion and Analysis ("MD&A") are available on the Company's website at www.petrominerales.com and will also be available on the SEDAR website at http://www.sedar.com.
[continued in following link]
http://biz.yahoo.com/ccn/081106/200811060495829001.html?.v=1
>Very extensive progam; thanks
Excellent Post concerning Petrobank...
credit to Bobwins
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32619838
Petrobank has proven mgmt that is always thinking a couple steps and a few years ahead. They have several years of drilling the Bakken ahead of them, THAI to develop and Colombia but they bought this company to get into a ngas shale play that uses the same kind of advanced horizontal well fraccing techniques that they helped develop in the Bakken play. If the two test wells work, expect that PBG will be ready to exploit this if ngas prices move back up.
PBG.to/pbegf.pk C$34.70
PBG.to averaged 10,000 boepd in 2007, they should average 28K for 2008 and should average 45,000boepd in 2009. That's growth!
Should have a very big Q3 because they will record a big gain from hedging, partially offsetting the big loss in hedges last qtr. Ignoring the hedging, their cashflow will jump from 1.49 in Q2 to the 2.50 range for Q3. They are internally financing all their multiple projects. Petrobank is a keeper,even in this terrible energy environment. If oil prices fall, their THAI approach just becomes even better because capex is 1/2 the SAGD installations and operating costs are much less and are many times better because of no water and ngas use to extract the goop. Bobwins
CALGARY, ALBERTA--(Marketwire - Oct. 2, 2008) - Petrobank Energy and
Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG) is pleased to
announce that it has successfully closed the previously announced
acquisition of Rocor Resources Inc. ("Rocor") for total consideration
of approximately $53 million, comprised of 699,183 Petrobank common
shares and $26.5 million in cash.
With the closing of this acquisition, Petrobank has acquired strong
development potential in the Montney formation through the use of
horizontal wells and fracture stimulation technologies, similar to
those employed by Petrobank in the Bakken play. Rocor's assets are in
the Monias area of northeast British Columbia and include 14 sections
of land with two producing vertical wells, and a 5 mmcf/d gas plant.
Rocor's independent reserve auditor, GLJ Petroleum Consultants, has
assessed the best estimate contingent recoverable resource potential of
the lands at 148 Bcf. Petrobank plans to further delineate the
potential of the play by drilling and fracture stimulating two
horizontal Montney wells on these lands by the end of 2008.
>I share the same thought, but all of my stocks are so far down. But I do want in on this company.
Let's hope the the effects of the bailout will push up precious metals, then we can sell something off and enter Petrobank.
sumi
Petrobank has alraedy accomplished so much,with so many irons in the fire,I´ll have to find a way to acquire,a position here before it leaves the barn and gallops away!
futrcash
Petrobank Closes Montney Acquisition
Thursday October 2, 8:12 pm ET
http://biz.yahoo.com/ccn/081002/200810020489560001.html?.v=1
CALGARY, ALBERTA--(Marketwire - Oct. 2, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) is pleased to announce that it has successfully closed the previously announced acquisition of Rocor Resources Inc. ("Rocor") for total consideration of approximately $53 million, comprised of 699,183 Petrobank common shares and $26.5 million in cash.
With the closing of this acquisition, Petrobank has acquired strong development potential in the Montney formation through the use of horizontal wells and fracture stimulation technologies, similar to those employed by Petrobank in the Bakken play. Rocor's assets are in the Monias area of northeast British Columbia and include 14 sections of land with two producing vertical wells, and a 5 mmcf/d gas plant. Rocor's independent reserve auditor, GLJ Petroleum Consultants, has assessed the best estimate contingent recoverable resource potential of the lands at 148 Bcf. Petrobank plans to further delineate the potential of the play by drilling and fracture stimulating two horizontal Montney wells on these lands by the end of 2008.
Petrobank Energy and Resources Ltd.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units and a technology subsidiary. The Canadian Business Unit is developing a solid production platform from low risk gas opportunities in central Alberta and an extensive inventory of Bakken light oil locations in southeast Saskatchewan, complemented by new exploration projects and a large undeveloped land base. The Latin American Business Unit, operated by Petrobank's 76.2% owned TSX-listed subsidiary, Petrominerales Ltd. (trading symbol: PMG), is a Latin American-based exploration and production company producing oil from three blocks in Colombia and has contracts on 15 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally. THAI(TM) and CAPRI(TM) are registered trademarks of Archon Technologies Ltd., a wholly-owned subsidiary of Petrobank.
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrobank assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Resources and Contingent Resources
In this press release, Petrobank has disclosed estimated volumes of "contingent resources" or "resource" estimates that have been prepared by GLJ Petroleum Consultants in respect of the Rocor assets. "Resources" are oil and gas volumes that are estimated to have originally existed in the earth's crust as naturally occurring accumulations but are not capable of being classified as "reserves". The following are excerpts from the definition of resources contained in Section 5 of the COGE Handbook, which is referenced by the Canadian Securities Administrators in "National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities". Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. Resources and contingent resources do not constitute, and should not be confused with, reserves.
Contact:
John D. Wright
Petrobank Energy and Resources Ltd.
President and Chief Executive Officer
(403) 750-4400
Chris J. Bloomer
Petrobank Energy and Resources Ltd.
Vice-President Heavy Oil
(403) 750-4400
Corey C. Ruttan
Petrobank Energy and Resources Ltd.
Vice President Finance and Chief Financial Officer
(403) 750-4400
Email: ir@petrobank.com
Website: www.petrobank.com
Exploration - Positioning for Future Growth
[from company web page: http://www.petrobank.com/can-exploration.html]
Petrobank continues to expand our exploration prospect base in areas where we have internal technical strengths and a strong land position. The Company's large undeveloped land position of 424,000 net acres provides a significant platform for future growth.
With a strategy of adding value through the drill bit, Petrobank is aggressively moving forward on new, potentially high-impact exploration prospects in Saskatchewan, BC, and Alberta. Petrobank plans to drill at least 20 exploration wells in 2008.
Petrobank's extensive undeveloped land position also includes non-expiring fee-title lands in Alberta, Saskatchewan and Manitoba. These lands have allowed us to monitor industry results and generate a significant amount of royalty income in the Sinclair and Innes areas. This provided the platform for growth of our Bakken light oil play where we significantly expanded our presence through Crown land sales.
Northwest Alberta Exploration
Land Base: 9,920 acres
Working Interest: 100 percent
Our 2008 plans include drilling at least three additional deep exploration wells in Northwest Alberta and Northeast British Columbia. Petrobank is balancing its lower risk activities with higher impact exploration potential in one of the more exciting industry plays in recent years. Petrobank's Growing land position in northwest Alberta is now further expanded by the lands acquired through the Peerless acquisition. Our interest in the area stemmed from the availability of Crown land, the growing availability of infrastructure, and the stacked potential targets in light oil and natural gas. From regional mapping and 3-D seismic acquired in 2007 over the most prospective lands, Petrobank's exploration lands appear to be on trend with recent large discoveries in the area.
Petrobank Energy and Resources Ltd. to present at the FirstEnergy/Société Générale Global Energy Conference in London, UK
Tuesday September 30, 10:00 am ET
http://biz.yahoo.com/cnw/080930/1stenergyconf_pbg.html?.v=1
Petrobank Announces First THAI(TM)/CAPRI(TM) Production
Monday September 22, 12:01 am ET
http://biz.yahoo.com/ccn/080922/200809220487084001.html?.v=1
CALGARY, ALBERTA--(Marketwire - Sept. 22, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) is pleased to announce results from the world's first CAPRI(TM) in-situ catalytic production well (P-3B) at our Whitesands project near Conklin, Alberta.
Whitesands P-3B Update
Petrobank drilled P-3B late in the second quarter of 2008 and completion operations commenced on the well in late July. This well has been designed to demonstrate the additional upgrading potential of our patented CAPRI(TM) process which places an active catalyst bed between two concentric slotted liners. In laboratory tests, CAPRI(TM) has achieved an upgrading effect of seven degrees API in addition to the upgrading effect resulting from the THAI(TM) process. The P-3B well also incorporates our narrower slot design, intended to significantly reduce sand production from the McMurray sandstone reservoir typically encountered at Whitesands.
Since air injection and oil production commenced in August from P-3B, the well has been on continuous production, with no appreciable produced sand. Initial produced fluids consisted of oil and water emulsions from the steam preheat as well as residual drilling mud, which diminished as the well cleaned up. Recently we have achieved oil production volumes of up to 300 barrels per day on low air injection rates, with oil cuts of 40 to 50%. While it is still too early to determine the effectiveness of the catalyst, the produced oil has been upgraded to 11.5 degrees API due to the thermal cracking effects of the THAI(TM) process. Currently P-3B is operating at a well bore temperature below the optimum range for the catalyst to be effective. We are presently increasing well bore temperatures up to 300 degrees Celsius for optimum catalyst efficiency and we will continue to analyze produced oil quality to assess the catalyst effectiveness. Produced gas analysis from P-3B is consistent with the P-1 and P-2 wells and indicates high temperature combustion with free hydrogen.
During the early startup phase of the P-3B well we have continued to operate the P-1 and P-2 wells at lower air injection rates. These wells have recently achieved high on-stream factors with oil production rates of up to 400 barrels per day for each well at a quality of approximately 12 degrees API, compared to the native 8 degree API bitumen in-situ. Now that P-3B production is stabilizing, we are gradually increasing air injection on all three wells, which is expected to result in further increases in fluid and oil production.
During August we also installed facilities to recover lighter oil that is currently being carried by the overhead gas stream as a vapor which is then condensing in the secondary separators. This lighter oil is over 30 degrees API and is not included in the production rates noted above. This lighter oil component further demonstrates significant in-situ thermal cracking and the potential for co-production of other high-value by-products.
Our revised facilities design utilizing primary gas separation followed by tank separation of oil, water and sand (rather than using a single pressure vessel) is being installed on P-3B and, when combined with the narrower liner slot size, is expected to eliminate most operational challenges caused by sand production in this well and future wells.
Petrobank Energy and Resources Ltd.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units and a technology subsidiary. The Canadian Business Unit is developing a solid production platform from low risk gas opportunities in central Alberta and an extensive inventory of Bakken light oil locations in southeast Saskatchewan, complemented by new exploration projects and a large undeveloped land base. The Latin American Business Unit, operated by Petrobank's 76.2% owned TSX-listed subsidiary, Petrominerales Ltd. (trading symbol: PMG), is a Latin American-based exploration and production company producing oil from three blocks in Colombia and has contracts on 15 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally. THAI(TM) and CAPRI(TM) are registered trademarks of Archon Technologies Ltd., a wholly-owned subsidiary of Petrobank.
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of a normal course issuer bid. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrobank assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrobank Energy and Resources Ltd.
President and Chief Executive Officer
(403) 750-4400
Chris J. Bloomer
Petrobank Energy and Resources Ltd.
Vice President Heavy Oil
(403) 750-4400
Corey C. Ruttan
Petrobank Energy and Resources Ltd.
Vice President Finance and Chief Financial Officer
(403) 750-4400
Email: ir@petrobank.com
Website: www.petrobank.com
--------------------------------------------------------------------------------
Source: Petrobank Energy and Resources Ltd.
Petrobank Announces First THAI(TM)/CAPRI(TM) Production
Monday September 22, 12:01 am ET
http://biz.yahoo.com/ccn/080922/200809220487084001.html?.v=1
CALGARY, ALBERTA--(Marketwire - Sept. 22, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG - News) is pleased to announce results from the world's first CAPRI(TM) in-situ catalytic production well (P-3B) at our Whitesands project near Conklin, Alberta.
Whitesands P-3B Update
Petrobank drilled P-3B late in the second quarter of 2008 and completion operations commenced on the well in late July. This well has been designed to demonstrate the additional upgrading potential of our patented CAPRI(TM) process which places an active catalyst bed between two concentric slotted liners. In laboratory tests, CAPRI(TM) has achieved an upgrading effect of seven degrees API in addition to the upgrading effect resulting from the THAI(TM) process. The P-3B well also incorporates our narrower slot design, intended to significantly reduce sand production from the McMurray sandstone reservoir typically encountered at Whitesands.
Since air injection and oil production commenced in August from P-3B, the well has been on continuous production, with no appreciable produced sand. Initial produced fluids consisted of oil and water emulsions from the steam preheat as well as residual drilling mud, which diminished as the well cleaned up. Recently we have achieved oil production volumes of up to 300 barrels per day on low air injection rates, with oil cuts of 40 to 50%. While it is still too early to determine the effectiveness of the catalyst, the produced oil has been upgraded to 11.5 degrees API due to the thermal cracking effects of the THAI(TM) process. Currently P-3B is operating at a well bore temperature below the optimum range for the catalyst to be effective. We are presently increasing well bore temperatures up to 300 degrees Celsius for optimum catalyst efficiency and we will continue to analyze produced oil quality to assess the catalyst effectiveness. Produced gas analysis from P-3B is consistent with the P-1 and P-2 wells and indicates high temperature combustion with free hydrogen.
During the early startup phase of the P-3B well we have continued to operate the P-1 and P-2 wells at lower air injection rates. These wells have recently achieved high on-stream factors with oil production rates of up to 400 barrels per day for each well at a quality of approximately 12 degrees API, compared to the native 8 degree API bitumen in-situ. Now that P-3B production is stabilizing, we are gradually increasing air injection on all three wells, which is expected to result in further increases in fluid and oil production.
During August we also installed facilities to recover lighter oil that is currently being carried by the overhead gas stream as a vapor which is then condensing in the secondary separators. This lighter oil is over 30 degrees API and is not included in the production rates noted above. This lighter oil component further demonstrates significant in-situ thermal cracking and the potential for co-production of other high-value by-products.
Our revised facilities design utilizing primary gas separation followed by tank separation of oil, water and sand (rather than using a single pressure vessel) is being installed on P-3B and, when combined with the narrower liner slot size, is expected to eliminate most operational challenges caused by sand production in this well and future wells.
Petrobank Energy and Resources Ltd.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units and a technology subsidiary. The Canadian Business Unit is developing a solid production platform from low risk gas opportunities in central Alberta and an extensive inventory of Bakken light oil locations in southeast Saskatchewan, complemented by new exploration projects and a large undeveloped land base. The Latin American Business Unit, operated by Petrobank's 76.2% owned TSX-listed subsidiary, Petrominerales Ltd. (trading symbol: PMG), is a Latin American-based exploration and production company producing oil from three blocks in Colombia and has contracts on 15 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally. THAI(TM) and CAPRI(TM) are registered trademarks of Archon Technologies Ltd., a wholly-owned subsidiary of Petrobank.
Forward-Looking Statements
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the timing of a normal course issuer bid. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrobank assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Contact:
John D. Wright
Petrobank Energy and Resources Ltd.
President and Chief Executive Officer
(403) 750-4400
Chris J. Bloomer
Petrobank Energy and Resources Ltd.
Vice President Heavy Oil
(403) 750-4400
Corey C. Ruttan
Petrobank Energy and Resources Ltd.
Vice President Finance and Chief Financial Officer
(403) 750-4400
Email: ir@petrobank.com
Website: www.petrobank.com
--------------------------------------------------------------------------------
Source: Petrobank Energy and Resources Ltd.
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PETROBANK ENERGY & RES
Business Description:
The Corporation is an oil and natural gas exploration and
production company operating in two Western Canadian focus
areas, Southeast Saskatchewan and Northwest Alberta.
Alberta and Saskatchewan's Oil Sands -
ROBTV - The Street with Bridgitte Anderson -
Dave Forest, senior analyst, Casey Research -
http://ad.ca.doubleclick.net/adx/video.robtv.com/video;mode=d;feed=vod;spd=h;product=video;video_id=....
http://www.robtv.com/articles/rob.tv/335/oilprograms.html
Address:
2600,240-4th, 4thAvenue s.w,
Calgary, AB, CN T2P 4H4
Telephone:
(403) 920-0135
Website:
http://www.petrobank.com
Facsimile:
(403) 233-2249
Email:
ir@petrobank.com
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