Business
Petrolifera Petroleum Limited provides operational update; Q1 2007 crude oil sales strong; facilities progressing favorably; second rig to arrive next week; new concessions awarded or to be awarded in Argentina; Colombian concessions signed; Peru activity accelerating
Petrolifera Petroleum Limited provides operational update; Q1 2007 crude oil sales strong; facilities progressing favorably; second rig to arrive next week; new concessions awarded or to be awarded in Argentina; Colombian concessions signed; Peru activity accelerating.
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, May 2 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) is\npleased to provide an operational update to its shareholders.\n\n\nThe company's first quarter 2007 crude oil sales averaged 11,333 bbl/d,\nwhich represents a 511 percent increase over the same period last year when\nsales were only 1,855 bbl/d. The first quarter sales also represent an\nincrease of six percent over the fourth quarter of 2006, despite the fact\nfourth quarter 2006 levels were favorably affected by deliverability testing\nduring the month of December 2006, when peak production levels of 13,400 bbl/d\nwere tested. Since that time, the company has curtailed production levels for\nsound reservoir management purposes and some pressure declines have also been\nexperienced. Accordingly, the company is proceeding with a pressure\nmaintenance waterflood designed to assist long-term production levels and\noverall reserve recovery factors. The waterflood is anticipated to be\noperative by September 2007 when water injection will be initiated, after\nwhich it will take some time for response to occur in the reservoirs. In the\ninterim, production growth is likely to be achieved from new wells drilled on\nnewly-defined prospects which are separate from the existing accumulations.\n\n\nFirst quarter 2007 natural gas sales were 1,858 mcf/d and on an\nequivalent basis, sales averaged 11,643 boe/d, 485 percent above 2006 levels\nof 2,062 boe/d.\n\n\nIn 2007, Petrolifera has drilled and completed only three wells due to\nthe late arrival of drilling rigs. All of the wells have been tested, cased\nand completed as producing oil wells. Two of the wells, 1016 and 1023, have\nbeen placed on pump due to the wells encountering lower reservoir pressures.\nThe 1021 well is a flowing oil well. The company is currently drilling the\n1056 location, situated to the east of 1004 and southeast of the\n1003-1010-1011 accumulation.\n\n\nThe company continued to make progress with its field facilities during\nthe quarter, with some revised engineering required as changing plans were\nintroduced. As a result, the treatment plant at Puesto Morales is not yet\nfully operative, although it should be shortly. In the interim, a portion of\nthe company's crude oil sales are delivered through its own pipeline to the\nnational grid, while the balance continues to be trucked to th...