TORONTO, Dec. 12, 2011 /PRNewswire/ - PetroMagdalena Energy Inc. (TSXV: PMD) is pleased to announce that the Petirrojo-2 development well has been on production for the last 24 hours with an average rate of 1,108 bopd natural flow with a 21.3% water cut of 40.4 degrees API light oil. This represents approximately 775 bopd gross working interest share for the Company.
Luciano Biondi, Chief Executive Officer of PetroMagdalena stated, "We are very pleased to announce the Petirrojo-2 development well is now on production, and that completion operations on Petirrojo-3 have started. This development has now increased our daily production average to approximately 4,400 boepd. The last two Llanos basin exploration wells for this year will be drilled before year end, and is part of our plan to increase light oil production and reserves."
The drilling rig used to drill and complete Petirrojo-2 is now being mobilized to drill the Azor-1 exploration well on the adjacent Arrendajo block where the Company now has a 67.5% beneficial working interest, subject to ANH approval. A workover rig is also currently being mobilized to Petirrojo-3, which was drilled and cased in November 2011, to complete the well and put it on production. The Petirrojo-3 well is expected to be on production in approximately 12 days.
The Company is also pleased to announce that on December 11, 2011, the Yopo-1 exploration well was spudded on the Cubiro Block, four kilometers north of the Petirrojo production facility. Yopo-1 will test an exploration prospect located between the Petirrojo field and the Palmarito located six kilometers north of the Yopo-1 well. It is anticipated the well will reach total depth (TD) in approximately 12 days.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. Statements concerning oil and gas reserve estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the oil and gas that will be encountered if the property is developed. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 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. Estimated values of future net revenue disclosed do not represent fair market value. 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. SOURCE PetroMagdalena Energy Corp.