TORONTO, Sept. 1, 2015 /CNW/ - Pacific Exploration &
Production Corp. (TSX: PRE) (BVC: PREC) is pleased to announce that
its wholly-owned subsidiary Pacific Stratus Energy Del Peru S.A.
has been awarded a two-year contract to operate Block 192 (the
"Agreement") by Perupetro S.A. (the State company that, on
behalf of the Peruvian State is responsible for promoting,
negotiating, underwriting and monitoring contracts for exploration
and exploitation of hydrocarbons). Block 192 is located onshore
Peru and is the largest producing
oil block in Peru. The Agreement
was signed by the Government of Peru by way of Presidential decree on
August 29, 2015 and the Company
commenced operations on August 30,
2015.
Block 192 is located in the highly prolific Northern Marañon
Basin of Peru, adjacent to the
Peru-Ecuador international border. The block has
been in production for 40 years, with a cumulative production of
725 MMbbl at the end of 2013, and a peak production of 117,000
bbl/d in 1979. The block has a total of 17 light, medium and heavy
oil fields and production comes from 12 of these fields, which
represents approximately 17% of Peru's total oil production. The block is
currently producing approximately 12,000 bbl/d, of an average
18.9o API oil with a water cut of 97.9%.
The Company's remuneration under the Agreement will be based on
an R-factor calculation, which gives the Company a larger
percentage of initial production and declines as the investment is
recovered. The initial work program contemplates the
reactivation/workover of wells identified by the Company with
further activities subject to well and field performance.
Ronald Pantin, Chief Executive
Officer of the Company, commented:
"Pacific firmly believes that the reserves and the resource
upside on this block have the potential for increased production
levels. The application of Pacific's strong and proven expertise in
heavy oil production and water handling operations should result in
production upside through optimization of current operations,
re-activating wells and fields currently shut-in and future
development drilling. As with all of our activities in all of the
countries where we are working, the Company will ensure that Block
192 operations continue to be conducted with the utmost respect for
the environment and the social well-being of the local
communities."
About Pacific Exploration & Production:
Pacific Exploration & Production is a Canadian public
company and a leading explorer and producer of natural gas and
crude oil, with operations focused in Latin America. The Company has a diversified
portfolio of assets with interests in more than 85 exploration
and production blocks in seven countries including Colombia, Peru, Guatemala, Brazil, Guyana, Papua New
Guinea and Belize. The
Company's strategy is focused on sustainable growth in production
& reserves and cash generation. Pacific Exploration &
Production is committed to conducting business safely, in a
socially and environmentally responsible manner.
The Company's common shares trade on the Toronto Stock
Exchange and La Bolsa de Valores de Colombia under the ticker symbols PRE, and
PREC, respectively.
Advisories
Cautionary Note Concerning Forward-Looking
Statements
This news release contains forward-looking statements. All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes,
expects or anticipates will or may occur in the future (including,
without limitation, statements regarding estimates and/or
assumptions in respect of production, revenue, cash flow and costs,
reserve and resource estimates, potential resources and reserves
and the Company's exploration and development plans and objectives)
are forward-looking statements. These forward-looking statements
reflect the current expectations or beliefs of the Company based on
information currently available to the Company. Forward-looking
statements are subject to a number of risks and uncertainties that
may cause the actual results of the Company to differ materially
from those discussed in the forward-looking statements, and even if
such actual results are realized or substantially realized, there
can be no assurance that they will have the expected consequences
to, or effects on, the Company. Factors that could cause actual
results or events to differ materially from current expectations
include, among other things: uncertainty of estimates of capital
and operating costs, production estimates and estimated economic
return; the possibility that actual circumstances will differ from
the estimates and assumptions; failure to establish estimated
resources or reserves; fluctuations in petroleum prices and
currency exchange rates; inflation; changes in equity markets;
political developments in Colombia, Guatemala, Peru, Brazil,
Papua New Guinea, Guyana and Mexico; changes to regulations affecting the
Company's activities; uncertainties relating to the availability
and costs of financing needed in the future; the uncertainties
involved in interpreting drilling results and other geological
data; and the other risks disclosed under the heading "Risk
Factors" and elsewhere in the Company's annual information form
dated March 18, 2015 filed on SEDAR
at www.sedar.com. Any forward-looking statement speaks only as of
the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to the
inherent uncertainty therein.
In addition, reported production levels may not be reflective
of sustainable production rates and future production rates may
differ materially from the production rates reflected in this press
release due to, among other factors, difficulties or interruptions
encountered during the production of hydrocarbons.
The recovery and reserves estimates of crude oil and natural
gas reserves provided in this news release taken from the
independent reserve reports are estimates only, and there is no
guarantee that the estimated reserves will be recovered. Actual
crude oil and natural gas reserves may eventually be greater than
or less than the estimates provided.
The estimated values disclosed in this news release do not
represent fair market value. The estimates of reserves and future
net revenue for individual properties may not reflect the same
confidence level as estimates of reserves and future net revenue
for all properties, due to the effects of aggregation.
Translation
This news release was prepared in the English language and
subsequently translated into Spanish. In the case of any
differences between the English version and its translated
counterparts, the English document should be treated as the
governing version.
SOURCE Pacific Exploration and Production Corporation