PetroMagdalena announces 86% increase in 2P reserves at Cubiro

abarrelfullabarrelfull wrote on 27 Oct 2011 06:24
Tags: colombia petromagdalena reserves

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PetroMagdalena Energy Corp. (TSXV: PMD) announced today that it has received an independent reserves evaluation report dated September 30, 2011 (the "Petrotech Report") prepared by Petrotech Engineering Ltd. of Burnaby, British Columbia, relating to the current reserve base in Cubiro, the Company's oil and gas exploration and production property located in the Llanos Basin of Colombia. The combined proved plus probable ("2P") reserves for this block (gross to the Company) increased by 5.0 million barrels of oil ("MMbbls"), or 86%, compared to those reported in December 2010. The Company's gross (before royalties) 2P reserves at Cubiro at September 30, 2011 amount to 10.8 MMbbls, having a total net present value ("NPV") (10% discount, before tax) of US$263 million, an increase of US$126 million since December 2010. The Report also reflects a 73% increase in gross proven reserves ("1P") to a total of 3.0 MMbbls.

Luciano Biondi, Chief Executive Officer commented: "We are pleased with the results of this Cubiro update as it demonstrates our belief in the long term production potential of these fields, as we have added reserves in both proved and probable categories. Our development plan for Cubiro includes three additional wells to be drilled in the third and fourth quarter of this year as a result of this success."

These additional reserves are the result of the 2011 drilling campaign that started mid-July, resulting in three light oil discoveries: Petirrojo, Copa B and Copa AS. The Company also increased 2P oil reserves by approximately 1.0 MMbbls through the acquisition on April 15, 2011 of an additional 32.13% working interest in Block C of Cubiro.

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