TORONTO, Oct. 24, 2011 /PRNewswire/ - PetroMagdalena Energy Corp. (TSXV: PMD.V) is pleased to announce it has discovered a new light oilfield with the Copa A Sur-1 ("Copa AS-1") exploration well, located at short distances to the north and south of the Copa AS-1 well. A workover rig is currently at the location and the testing and completion program has begun, the results of which will be provided upon conclusion.
Luciano Biondi, Chief Executive Officer of PetroMagdalena stated, "I am pleased that we have a third successful well as part of our Cubiro 2011 drilling campaign and the third consecutive discovery based on the analogy with the Copa and Copa B fields. This well will add to our production growth for the balance of the year and into 2012, and it increases the chances of additional discoveries on the Copa trend in the Cubiro block, our core producing asset in Colombia."
Located in Cubiro Block of the Llanos Basin, the Copa AS-1 well, in which the Company holds a 57% working interest, was spudded on September 16, 2011 and directionally drilled to a total depth of 7,572 feet measured depth ("MD"). The top of C7, C5 and C3 Carbonera sections were encountered at depths of 6,241 feet (MD), 5,796 feet (MD) and 5,523 feet (MD), respectively. Well logs indicate a total of 57 feet of net oil sand, 12 feet in two C7 sands, 21 in two C5 sands and 24 feet in two C3 sands. Porosities range from 25% to 32%.
Based on 3D seismic, the accumulation discovered by Copa AS-1 is a 1.4-kilometre long structure with an estimated closure of 216 acres, and bounded to the east by a normal fault, the common exploration play in the Llanos Basin. The Copa AS structure is located 2.7 kilometres to the south of the Company's Copa Field, and immediately north of the recent discovery of Copa B, all of them part of the Copa trend. The Copa trend includes additional structures to be drilled targeting the prospective sands of Carbonera C7, C5 and C3.PetroMagdalena is a Canadian-based oil and gas exploration and production company, with working interests in 19 properties in five basins in Colombia. Further information can be obtained by visiting our website at www.petromagdalena.com All monetary amounts in U.S. dollars unless otherwise stated. This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of PetroMagdalena. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and reserve life of the various oil and gas projects of PetroMagdalena; the estimation of oil and gas reserves; the realization of oil and gas reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of PetroMagdalena and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated. Although PetroMagdalena has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. PetroMagdalena undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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