Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG), a 76.3% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG), is pleased to announce that our Corcel-C3 exploration well is producing at rates in excess of 9,700 barrels of oil per day ("bopd") of 29 degree API oil from 23 feet of high quality sand in the Guadalupe formation at a 0.3% water cut. We have installed an electric submersible pump in the well and plan to ramp the production up to the pump's capacity of 11,000 barrels of fluid per day over the next few days.
We have behind pipe capacity in both of our existing Corcel-C wells. In addition to the Guadalupe interval, Corcel-C3 also penetrated 45 feet of high quality sands in the Lower Sand-1 interval which has proven highly productive in our Corcel-C1 well. This interval in Corcel-C1 has already produced 329,000 barrels of 17 degree API crude oil since July 25, 2008 and is still producing 3,712 bopd. The Corcel-C1 well logs also indicate 41 feet of net pay in the Guadalupe which is currently not completed. We plan to produce the Guadalupe zone from the Corcel-C3 well and the Lower Sand interval in Corcel-C1 on extended tests and evaluate the optimal exploitation strategy for both zones, which might include additional delineation wells.
We are now drilling the Corcel-D1 well and have reached the top of the Mirador formation where we experienced encouraging oil and gas shows. This is the first well in a multi-well drilling program planned for the Corcel-D structure which, based on 3D seismic, appears analogous to our Corcel-A structure.
Production Update
Our production averaged 12,491 bopd in the third quarter of 2008, 176% higher than the 4,522 bopd produced in the third quarter of 2007 and 70% higher than the 7,339 bopd produced in the second quarter of 2008. Production has now increased to over 22,000 bopd including production from Corcel-C3.
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 76.3% owned by Petrobank (TSX:PBG).
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.
SOURCE: Petrominerales Ltd.
Petrominerales Ltd.
John D. Wright
President and Chief Executive Officer
(403) 750-4400 or 011 571 629 2701
Petrominerales Ltd.
Corey C. Ruttan
Vice-President Finance and Chief Financial Officer
(403) 750-4400 or 011 571 629 2701
Petrominerales Ltd.
Jack F. Scott
Executive Vice-President and Colombian Country Manager
(403) 750-4400 or 011 571 629 2701