Business
Petrolifera Petroleum provides operations update
Petrolifera Petroleum provides operations update
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\n May 31, 2010 (Canada NewsWire Group) -- Petrolifera Petroleum Limited (PDP - TSX) is pleased to provide an operations update for its shareholders.\n\nARGENTINA\n\nPuesto Morales/Rinconada Concession (100% and Operator)\n\nCurrent production is averaging approximately 4,000 boe/d, primarily from the Puesto Morales Norte ("PMN") Field, situated in the onshore Neuquén Basin. Recent pricing for crude oil has been quite favorable, approaching US$52.00 per barrel. Capacity at the company's water injection plant was recently increased from 25,000 bbl/d to 33,000 bbl/d and the company has acquired a stand-by water injection pump for increased production reliability. Simultaneously, produced water treatment capacity is being increased from 12,000 bbl/d of to 33,000 bbl/d, with a scheduled completion date of mid-June 2010. This expanded capacity will enable the company to handle increased fluid volumes, which is anticipated to extend the ability to sustain production and recover increased volumes of crude oil. This was also undertaken in anticipation of the commencement of an additional five well infill drilling campaign, scheduled to be underway by the middle of the third quarter 2010, which will target unproduced reserves from within the Field.\nThe company is considering and evaluating various proposals to accelerate drilling on its Puesto Morales/Rinconada Blocks, including a multi-well infill program within the Puesto Morales Block to access extensive identified but untapped Loma Montosa crude oil and natural gas reserve and production potential. Also, the company recently completed an agreement to farmout the northern portion of the Rinconada Block, located in La Pampa Province, in exchange for a 35 percent carried working interest in three wells and operatorship of this portion of Rinconada.\n\nVaca Mahuida License (25% and Operator)\n\nAt Vaca Mahuida, a total of five wells have recently been drilled by Petrolifera, as operator and with a 25 percent carried interest in the program. All five wells have encountered hydrocarbons in at least one of the Centenario, Loma Montosa, Sierras Blancas, Punta Rosada and Pre-Cuyo Formations. This has validated the geological model through the confirmation of both hydrocarbon migration and trapping in the Vaca Mahuida License. Results to date for these wells are as follow...