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Petroamerica Provides an Operations and Financial Update for its Activities in Colombia...
Wednesday, October 02, 2013
Petroamerica Provides an Operations and Financial Update for its Activities in Colombia
CALGARY, Oct. 2, 2013 /CNW/ - Petroamerica Oil Corp. (TSX-V:PTA) ("Petroamerica" or the "Company"), a Canadian oil company operating in Colombia is pleased to provide an operating and financial update for activities in Colombia.
The Company's cash position, as of September 30, 2013, was approximately US$64 million and all planned future capital programs through 2014 are expected to be fully funded from a combination of cash-on-hand and projected revenues.
Company working interest production for the third quarter averaged 5,951 barrels of oil per day ("bopd"), an increase of 18% over production levels reported for the second quarter of 2013. Company working interest production for the month of September averaged 6,213 bopd, compared to an August average of 5,997 bopd, representing a 4% increase.
Las Maracas Field, Los Ocarros Block (50% Working Interest)
The Las Maracas field oil production averaged 12,200 bopd gross for the month of September. Production from the field is currently being managed with the objective of extending the production plateau, optimising total fluid production and delaying the future decline. Looking forward, the Las Ocarros partnership intends to carefully manage the Las Maracas Field production and it is therefore anticipated that production is expected to be maintained at approximately 12,000 to 12,500 bopd gross throughout the rest of this year.
The Las Maracas-5 well has been recompleted as a Mirador producer. The well had been previously producing from the Gacheta and produced 332,886 barrels of oil before being shut in with a water cut of 50% and being recompleted. A production test from the Mirador over a 7-hour period on a 30/64-inch choke yielded an average rate of 2,993 bopd under natural flow conditions. The stabilized rate for the last hour of the test was approximately 3,200 bopd with 0.5% water cut. This test again confirms the excellent properties of the Mirador reservoir at the Las Maracas Field. It is anticipated that the remaining Gacheta oil volume will be drained by the up dip LM-6 well. Further to this, once the Mirador starts cutting higher water volumes there is the option to commingle the production from both the Mirador and Gacheta zones together.
The Las Maracas-12 development well targeting attic oil in the Gacheta and Une reservoirs, encountered a total net pay thickness of approximately 17 feet. The well produced light oil (29.8o API) on test from the Une Formation under natural flow conditions. The most representative average flow rate was 674 bopd through a 34/64-inch choke over a 17-hour period. During the test a maximum oil rate of 1,582 bopd was observed and the water cut at the end of the test was 25% with the well still cleaning up. The well has since been completed as an Une oil producer.
The Las Maracas-14 well has successfully delineated the southern extent of the Las Maracas Field. The well encountered approximately10 feet of net pay in the Mirador Formation. The Gacheta and Une Formations were deemed to be water bearing from the observed log response. The Mirador is expected to be production tested using a work over rig and the Tuscany 109 rig will now mobilize to drill the La Guira prospect located to the immediate south of the Las Maracas Field.
La Casona Discovery, El Eden Block (40% Working Interest)
The La Casona-2 Sidetrack appraisal well reached its target depth of 16,700 feet, however, while pulling out of the hole prior to wire-line logging, part of the well bore collapsed trapping the drill string. Following several unsuccessful fishing attempts, the decision was taken to abandon the deeper part of the well bore and initiate a new sidetrack (La Casona-2 Sidetrack-2). LWD (Logging While Drilling) logs from the original well bore indicates up to 46 feet of potential net oil pay in the Mirador Formation, 25 feet in the Gacheta and up to 25 feet of potential net pay in the Une Formation, with the caveat however, that logs over the Une are of poor quality. Given the encouraging log response and good oil shows encountered in the Mirador Formation, the primary objective of the new sidetrack will be to drill and test the potential Mirador oil leg only. The new sidetrack is expected to kick off at a depth of approximately 14,700 feet in the Carbonera C7 Formation, and is expected to drill approximately 600 feet to its new target depth.
Construction of the long-term test production facility for the La Casona-1 well, which includes gas compression, is now complete. However, in the interest of safety, production from this well will not commence before the Tuscany 119 rig, which is drilling the La Casona-2 Sidetrack-2 well from the same surface pad, has moved off location.
About Petroamerica:
Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica produces more than 6,000 bopd from two oil fields, is appraising two new discoveries and has interests in six exploration blocks, all located in Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
Forward-Looking Statement
This news release includes forward-looking statements related to the expected occurrences in relation to the properties and drilling activities identified. A multitude of factors can cause actual events to differ significantly from any anticipated development and although Petroamerica believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized. These forward looking statements are based upon assumptions that Petroamerica has made concerning the oil and gas industry in Colombia, the reliability of available data regarding the properties, and the continuing market for oil and gas. Risk factors may include the uncertainty of conducting operations under a foreign regime, the availability of labour and equipment, the fluctuating price of oil and gas, and Petroamerica's dependence upon other participants in the property areas. Neither Petroamerica nor any of its subsidiaries nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors, nor do any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
Although the Company believes that the expectations represented by the forward-looking statements contained herein are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Data obtained from the initial testing results at the well identified in this press release, including barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The well test results obtained and disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Petroamerica Oil Corp.
For further information:
Nelson Navarrete
President and CEO
Colin Wagner
CFO
Ralph Gillcrist
COO, Executive Vice President
Tel Bogota, Colombia: +57-1-744-0644
Tel Calgary, Canada: +1-403-237-8300
Email: investorrelations@pta-oil.com
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