TORONTO, Feb. 25 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today, together with its joint venture partner Petrodorado Ltd. (a wholly owned subsidiary of Cap-Link Ventures Ltd. (TSXV:CAV)), the successful completion of a new discovery well (ME-1) as a Mirador producer in the Moriche block, located in the Llanos basin of Colombia.
Mr. Ronald Pantin, Chief Executive Officer, commented: "We are very pleased with the success of the first well drilled as part of the 2010 exploratory program for the block. The fact that the first well drilled this year resulted in a commercial discovery confirms our optimism as to the hydrocarbon potential of the block. We look forward to the drilling of the second well in the same structure at the earliest possible opportunity to optimize hydrocarbon recovery."
Mauritia East Prospect (Moriche Block) ME-1:
The directional well was drilled to a total measured depth of 10,182 feet with the primary target of Mirador (9531 feet to 9770 feet measured depth, true vertical depth of 9130 feet). The well encountered a net oil column of 32 feet (true vertical depth) with 21.3% porosity and oil saturation of 71.3%, based on petrophysical analysis. The well was tested with two different pump systems; the jet pump yielded a peak oil rate of 650 barrels of oil per day (bopd) of 14 degree API oil, while the Electric Submersible Pump (ESP) yielded a peak oil rate of 693 bopd of 14 degree API oil. The well will be completed with an ESP and put into production within the next 40 days. A second well is scheduled to be drilled on the same structure during the second quarter of 2010.
As previously announced, Petrodorado acquired from the company a 49.5% working interest in the Moriche Block - Mauritia East Prospect, located in the Llanos Basin of Colombia. In exchange for this working interest, Petrodorado agreed to fund 100% of the total investment for the current exploratory phase for the block, equal to US$5.53 million. The company retains a 37.5% working interest in the Mauritia East Prospect.
Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Quifa Blocks in the Llanos Basin in association with Ecopetrol S.A., the Colombian national oil company. Pacific Rubiales also owns 100% of Pacific Stratus Energy which operates the rest of the production fields in Colombia. The company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has a current net production of over 55,000 barrels of oil equivalent per day (after royalties), with working interests in 32 blocks in Colombia and Peru.
Information in this press release expressed in barrels of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (Mcf) of natural gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements including with respect to estimates of reserves and future net revenues and additional exploration and appraisal wells. All statements, other than statements of historical fact, that address activities, events or developments that the company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the company based on information currently available to the company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia or Peru; changes to regulations affecting the company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the company's annual information form dated April 1, 2009 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.For further information: Mr. Ronald Pantin, Chief Executive Officer and Director; Mr. Jose Francisco Arata, President and Director, (416) 362-7735; Ms. Belinda Labatte, (647) 428-7035