CALGARY, March 26 /CNW/ - Petrolifera Petroleum Limited (PDP-TSX) announces that subsequent to the issuance of its press release earlier today with respect to its RN.PM a-1016 well, wherein it was announced the well was flowing at a calculated rate of 460 bbl/d of light gravity crude oil, the well stopped flowing. This occurred during continued testing of the well using various choke sizes.
Testing procedures are continuing, and based on this development it now appears the well may need some form of artificial lift or pump, although no conclusion has yet been arrived at in this regard. The change which occurred may be due to a relatively high gas/oil ratio encountered in the well, along with some element of pressure depletion due to production from offset wells and general reservoir quality at this location.
While subject to the normal risks of predicting how any new well will perform, Petrolifera believes the well, on pump, will be a commercial producer and it may produce at or towards the levels recorded when the well was flowing, but further testing will now be required to confirm this estimate.
It should be noted that the indicated flow rate represents approximately four percent of Petrolifera's current average daily production rate, which will fluctuate over the next several days as field pressure testing of other individual Puesto Morales wells is undertaken as a normal course procedure.
Forward Looking Statements
This press release contains forward-looking statements, including but not limited to expectations with respect to production rates, flow rates and productive capacity of the RN.PM a-1016 well and continued testing activities related thereto. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ 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 and recoverability thereof; 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 third party contractors and risk associated with international activity. Although Petrolifera believes that our expectations represented by these forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. In particular, Petrolifera has not established a stabilized flow rate in respect of the RN.PM a-1016 well and this well is not currently onstream. 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. For a detailed description of the risks and uncertainties facing Petrolifera, readers should refer to Petrolifera's Annual Information Form as filed at www.sedar.com.