TORONTO, March 16 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today a new oil discovery at the Quifa 24X exploratory well, as well as results of the Quifa 32 appraisal well located in the Quifa Block, Llanos Basin, Colombia.
Mr. Ronald Pantin, Chief Executive Officer, commented: "Our sustained effort and focus in this area continues to show positive results and extends our understanding of the Quifa region and its hydrocarbon potential."
The Quifa 24X exploratory well was drilled on Prospect "Q" at the northeastern border of the Quifa block, and found the top of the Carbonera basal sands at 3,206 feet measured depth (MD), or 2,666 feet true vertical depth at sub-sea level (TVDSS) and the oil water contact (OWC) at 3,252 feet MD, or 2,712 feet TVDSS, resulting in an oil column of 46 feet gross at the well. The petrophysical evaluation of the well indicates a net pay zone of 22 feet with 32% average porosity. The Quifa 24X well, drilled as part of the exploratory drilling campaign that the company is carrying out in this part of the block, was drilled to the northeastern flank of Prospect "Q", at a distance of approximately 5.1 km from the crest of the structure, which has been mapped at 2,580 feet TVDSS. This indicates that the thicker section of the reservoir, approximately 86 feet thick, locates toward the highest part of the structure. The structural trap for Prospect "Q" shows a preliminary area of approximately 9,513 acres, and stretches 12.7 km in the southwest-northeast direction and 3 km crosswise. The Quifa 24X well was drilled at a distance of 20.1 km from the Quifa 6 discovery well on Prospect "A", 5.2 km from the Quifa 23X well on Prospect "G", and 6.2 km from the Quifa 26X discovery well, on prospect "F" (please refer to the Quifa 6, Quifa 23X and Quifa 26X well results, reported in the company's press releases dated February 9, 2010 and March 8, 2010, respectively). This discovery, together with the discoveries at the Quifa 6 and Quifa 26X wells, confirms the company's previous assessment of the hydrocarbon prospectivity in this part of the block.
The Quifa 32 well was drilled as the fourth appraisal well for the Quifa 7 discovery well on Prospect "H". The well found the top of the Carbonera basal sands at 2,825 feet MD, or 2,188 feet TVDSS and the oil water contact OWC at 2,871 feet MD, or 2,234 feet TVDSS, resulting in an oil column of 46 feet at the well. The petrophysical evaluation of the well logs indicates a net pay zone of 25 feet, with 32% average porosity. The Quifa 32 well was drilled at a distance of 900 m to the northeast of the Quifa 7 well. The results of this well, along with the results of the Quifa 7, Quifa 10, Quifa 11 and Quifa 31 wells confirm the area and the net pay previously estimated for prospect "H", consisting of 5,175 acres and 21 feet, respectively (refer to the drill results of the Quifa 7, Quifa 10, Quifa 11 and Quifa 31 wells, in the company's press release dated September 8, 2009).
For a detailed map of the Quifa exploration campaign, please refer to the company's investor presentation on the company's website at www.pacificrubiales.com.
The Quifa Block is an Association Contract with Ecopetrol S.A. in which Meta Petroleum Ltd. (a wholly-owned subsidiary of the company) holds a 60% working interest and Ecopetrol S.A. holds a 40% working interest.
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/Piriri and Quifa Block in the Llanos Basin in association with Ecopetrol S.A., the Colombian national oil company. Also, through its affiliate Pacific Stratus Energy Corp., 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 (boes) 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 5.7 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. 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