CALGARY, Aug. 9 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) is pleased to announce test results for its RN.PM a-1061 well on the central lobe of the Puesto Morales North field in the Neuquen Basin, Argentina.
On test, the well flowed 35 degrees API crude oil at a rate of 1,643 bbl/d through a 50 millimeter choke and at a rate of 1,490 bbl/d on an 18 millimeter choke, both with no water, from a lower set of perforations in Sierras Blancas zone approximately 17 meters thick, based on log analysis. The company plans further testing of the zone through an upper set of perforations. The outcome of the well is expected to impact the overall aerial extent and reserves associated with the central lobe.
It is anticipated the well will be placed onstream as a flowing well with an initial rate of approximately 1,000 bbl/d, increasing current oil production to over 8,000 bbl/d. The company is presently drilling three wells, two offsetting the prolific 1027 well on the northern lobe of Puesto Morales, and one on the Rinconada Block (1006). Also, the 1033 well on the northern lobe remains to be tested which has been cased as an indicated Sierra Blancas oil well with extended pay of approximately 12 meters thick.
Petrolifera is a Calgary-based crude oil and natural gas company active in Argentina, Colombia and Peru. The company expects to immediately start its seismic program on its 3 million acre Ucayal Block 107, upon formal receipt of approval of its Environmental Impact Assessment study. Seismic will also be underway shortly on its Gobernador Ayala Block in Argentina. Seismic on the Vaca Mahuida Block in Argentina will commence in early 2008. Also, up to three additional drilling rigs and two additional service rigs are being considered for use in Argentina later this year.
Drilling in Peru and Colombia is anticipated in 2008 following interpretation of planned seismic programs.
This press release contains forward-looking statements, including but not limited to future drilling plans, anticipated capital expenditures, forecast production, anticipated reserve additions and estimated flow rates and levels of water incursions. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity. Additional risks and uncertainties are described in the company's Annual Information Form which is filed on SEDAR at www.sedar.com.
The company's ability to complete its capital program and potentially increase production volumes and reserves is dependent on access to services, drilling rigs and equipment. Similarly, the company's ability to increase sales of oil and natural gas is dependent on sustained productivity of new and existing wells, maintenance (or reduction) of water cuts and completion of certain infrastructure and transportation systems that are currently under construction. There can be no assurance that the flow rates of newly drilled wells will result in stabilized production at these levels or that the company's new or existing high productivity wells will not incur higher water cuts than that reported herein or reductions in reservoir pressures, resulting in a decision to further curtail production pending implementation of the proposed pressure maintenance program or other remedial measures. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the company's securities should not place undue reliance on these forward-looking statements. Forward looking statements contained in this press release are made as of the date hereof and are subject to change. The company assumes no obligation to revise or update forward looking statements to reflect new circumstances, except as required by law.
A barrel of oil equivalent (boe), derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.