CEPSA and PACIFIC RUBIALES oil discovery... | ___xxCEN:CA Message Board Posts

___xxCEN:CA   /  Message Board  /  Read Message



Rec'd By
Authored By
Minimum Recs
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board
Msg  25989 of 25993  at  2/5/2014 7:02:25 AM  by


CEPSA and PACIFIC RUBIALES oil discovery...

TORONTO, Feb. 5, 2014 /PRNewswire/ - Pacific Rubiales Energy Corp. (PRE.TO) (BVC:PREC) (BOVESPA:PREB) today announced well test results from the Los Angeles-1X well located in Block 131 and an update on its Block 126, both located in the onshore Ucayali Basin in Peru. The Company gained its interest in both blocks through the Petrominerales Ltd. acquisition completed in late 2013.

Ronald Pantin, Chief Executive Officer of the Company, commented:

"The Company is very encouraged by the test results in the Los Angeles 1X well in Block 131 and is looking forward to progressing this discovery and the earlier Sheshea-1X oil discovery in Block 126 through an evaluation phase and future development and production. These light oil discoveries support our confidence in the potential of the under-explored onshore basins in Peru."

Block 131

Pacific Rubiales, through its wholly owned subsidiary Pan Andean Resources Plc (Perú), Sucursal del Perú, holds a 30% working interest in Block 131 in Peru. The Company, in joint operations with the operator CEPSA Peru S.A., has now carried out the third phase of exploration in the block. The operator carried 100% of the well costs and will retain the remaining 70% working interest. The Los Angeles 1X well in Block 131 was spud in mid-September, 2013 and reached a total depth of 12,409 feet in late November. Petrophysical evaluation indicated the presence of 62 feet of net pay in the Cretaceous aged Cushabatay formation.

Three separate tests have now been conducted across different net pay intervals in the Cushabatay formation under swabbing and natural flow conditions and through variable choke sizes over 22 to 60 hour test periods. Final flow rates from the three test intervals were 135 bbl/d, 936 bbl/d and 2,351 bbl/d respectively of 44° to 45° API light sweet oil. Water cuts ranged from 10% in the lowest interval to 0.3% to nil in upper intervals.

The produced oil was trucked and sold to the nearby Pulcallpa refinery in Peru. The operator has applied for a 30 day initial production test to further understand the reservoir drive mechanism to be followed by an extended production test beginning in mid-2014 (subject to government approvals). Both companies are currently evaluating development and oil marketing strategies for the block.

Block 126

The Sheshea-1X exploration well was drilled to a total depth of 8,925 feet in late 2012 and tested 1,430 bbl/d of 53° API light sweet oil with no water from a ten foot perforated zone in the Cretaceous aged Chonta formation. The Cretaceous aged Agua Caliente Formation tested 80 bbl/d of 42° API with a 97% water cut suggesting a potential accumulation updip from the well. The Company holds a 100% operated working interest in Block 126 and has recently applied for two Environmental Impact Assessments ("EIA") in order to progress the discovery to an evaluation phase followed by the expected development of the discovery. The first EIA is for 23 drilling pads, comprised of 8 wells each plus a 2D and 3D seismic program. The second EIA is primarily for early production facilities. The Company expects to receive the approval of these EIA's by the end of 2014.

Pacific Rubiales, a Canadian company and producer of natural gas and crude oil, owns 100% of Meta Petroleum Corp., which operates the Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and 100% of Pacific Stratus Energy Colombia Corp., which operates the La Creciente natural gas field in the northwestern area of Colombia. Pacific Rubiales has also acquired 100% of Petrominerales Ltd., which owns light and heavy oil assets in Colombia and oil and gas assets in Peru, 100% of PetroMagdalena Energy Corp., which owns light oil assets in Colombia, and 100% of C&C Energia Ltd., which owns light oil assets in the Llanos Basin. In addition, the Company has a diversified portfolio of assets beyond Colombia, which includes producing and exploration assets in Peru, Guatemala, Brazil, Guyana and Papua New Guinea.

The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB, respectively.

     e-mail to a friend      printer-friendly     add to library      
Recs: 0  
   Views: 849 []
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board

Financial Market Data provided by