Petrominerales Provides Exploration And Operations Update Highlighted By Bromelia-1 Well

abarrelfullabarrelfull wrote on 27 Apr 2012 06:39
Tags: colombia peru petrominerales s-america upstream


Petrominerales Ltd. (“Petrominerales” or the “Company”) (TSX: PMG, BVC: PMGC) is pleased to provide the following exploration and operations update.

Foothills Blocks (Block 25, 31, 59 and 15), Deep Llanos Basin, Colombia
At Bromelia on Block 25, we have reached our third intermediate casing point of 18,015 feet measured depth after penetrating the Carbonera, Mirador, Guadalupe and Barco formations. The well penetrated an initial 204 feet of net potential reservoir. The log data is considered to be poor as the density tool only functioned intermittently during the logging operation. Net potential pay is initially estimated to be 40 feet and the well was successfully cased to 18,015 feet. Hydrocarbon shows either described from geological description or seen in mud gas were encountered in the Carbonera C8, Mirador, Guadalupe and Barco formations. Following drilling of the final section of the well, expected to be up to an additional 800 feet and reached in mid-May, we will acquire logs and initiate a comprehensive testing program.

We believe that the thickness of reservoir quality intervals encountered at these drilling depths is very encouraging for the prospectivity of the Block. We also have initiated a 187 square kilometre 3D seismic acquisition program on the northern portion of the Block. The 3D seismic, combined with our well results, will help to significantly improve our geological and geophysical understanding of the area.

Following Bromelia, we plan to commence drilling our second exploration prospect on Block 25, Canatua-1, in June.

Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia On our Corcel Block, we began drilling our Chilaco-1 prospect January 29th, and reached total depth of
12,360 feet on March 18th. Well logs indicate 24 feet of potential net oil pay in the Lower Sand Formations.

We cased the well and placed it on production at 437 bopd with a 45 percent water cut.
Following Chilaco-1, we began drilling our next prospect, Guala-1 on March 31st. In addition, as previously disclosed, our Tente-1 exploration well has been drilled and we are planning to commence a three interval testing program within the next week.

Central Llanos Basin (Casimena, Castor, Casanare Este, Mapache Blocks), Colombia
On our Mapache Block, we previously announced our Tucuso discovery on March 5th. We were successful in isolating production to the upper Ubaque sand to optimize oil and minimize water production. The well averaged over 1,000 bopd for the last 15 days of March.

Following Yenac-5, we drilled our Yenac-4 appraisal well. Well logs indicate 55 feet of potential net pay, 36 feet in the Upper Mirador formation and 19 feet in the Lower Mirador formation. We plan to place Yenac-4 on production by the end of April.

Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este), Colombia
We obtained initial production log data on our Tatama-1 horizontal well on our Rio Ari Ari Block. Based on our analysis, we believe there is fluid inflow coming from the entire length of the horizontal section. We plan to place the well on a long-term production test while running a coiled tubing string for down-hole diluent injection to assist in producing the well.

As previously disclosed on March 5th, to-date in 2012 we have drilled four stratigraphic wells (ES-22A, ES-36, ES-42, and ES-42A) on our Rio Ariari block. The drilling rig is currently moving to our Dara-1 prospect on our Chiguiro Oeste Block, and the stratigraphic rig is moving to drill our next well, ES-45. Following completion of our current nineteen-well stratigraphic drilling program, we plan to select a location for our next conventional horizontal heavy oil well.

Block 126, Peru
The testing of the La Colpa 2X well has been completed and no hydrocarbons were encountered. Log analysis and sample evaluation had suggested potential for hydrocarbons in several zones; namely in the Tarma sandstone and in several porous intervals in the Copacabana carbonates. The Tarma was completed first; little fluid was produced and no oil recovered. Pressure information indicated the permeabilities were
too low for the interval to be considered economic. The Tarma was suspended and completions were initiated on several porous intervals in the Copacabana. Despite encountering oil and gas shows in thesamples while drilling, it appears the entire Copacabana section has been flushed with fresh water.

Unusually low salinities in the formation waters complicated log analysis as fresh water generates a similar high resistivity log signature to that of hydrocarbons. Although excellent reservoirs were encountered, with flow rates of up to almost 4,000 barrels of fluid per day, only water was produced.

Following La Colpa 2X, we plan to move equipment to drill our Sheshea-1X prospect on the Block. The Sheshea prospect is an independent prospect from La Colpa and we are targeting multiple reservoir formations in the well. We expect to begin drilling operations from this well in July, subject to weather conditions.

PRODUCTION
For the first quarter, production averaged 34,047 bopd. In March, production averaged 35,187 bopd, a nine percent increase over February.


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