BOGOTA, Colombia, Feb. 17, 2011 /PRNewswire/ -- La Cortez Energy,
Inc. ("La Cortez") (OTC: LCTZ) is pleased to provide the
following operational update regarding activities in the Maranta
Block.
Maranta Block
Mirto Field - Mirto-2 N sand
Production Test Results
As previously reported, after the workover conducted in the
Mirto-2 well, and the production testing initiated on January 9th, 2011, we are pleased to announce
that the well has been on production since then with the following
results:
Average oil production over the testing period has been 558 bopd
Gross (112 bopd net to La Cortez before royalties) with an average
Base Sediment and Water (BS&W) of 3.03% over the same period.
Total fluids production averaged approximately 596 bopd. Over the
last 10 days, production has been stable at some 544 bopd with
almost no water production (see graph below).
(Photo: http://photos.prnewswire.com/prnh/20110217/NY50032
)
Emerald, as operator of the Block, has received authorization
from the Colombian Ministry of Mines to continue production from
the well under a long term test. This period will be used to
conduct well pressure testing and to gather other information use
to define potential of this reservoir as well as to optimize
production rates.
The Mirto-1 well continues to be shut in due to mechanical
problems. A review of the conditions of this well is
currently being performed in order to determine potential
corrective actions regarding both the Villeta U and Villeta N sands
production. These corrective actions will also depend on
performance of the results on the Mirto-2 Villeta N sand long
production test.
The Maranta block covers an area of 90,459 acres (36,608
hectares) in the foreland of the Putumayo Basin in southwest
Colombia. Emerald signed its
E&P contract with the Agencia Nacional de Hidrocarburos
("ANH"), Colombia's hydrocarbon
regulatory agency. Emerald has filed a request with the ANH
for the assignment of the 20% working interest in the Maranta block
to La Cortez. The ANH granted La Cortez until April 15, 2011 to present the 2010 audited
financial statements along with other financial information
required.
As indicated before, both Emerald Energy PLC (operator of the
block) and La Cortez have complied with the exploration obligations
on this block as per the contract signed with the Agencia Nacional
de Hidrocarburos (the "ANH"), Colombia's hydrocarbon regulatory agency.
Under the contract terms and conditions and after completion of
phase 3 exploration, with the drilling of Mirto-2 well last year,
we and Emerald are required to relinquish 50% of the area of
the block, as selected by us and Emerald, and we have the option to
continue exploration activities in the remaining 50% of the area by
committing to additional exploration activity with the ANH, such as
new seismic acquisition or drilling a new exploration well. This is
a normal procedure in contracts signed with the ANH. The area
around the Mirto field will be retained to continue with the
evaluation process. Emerald has presented to the ANH the area to be
relinquished along with the work commitments to be conducted in the
remaining area of the Block. The work commitment suggested is
either new seismic acquisition (120 Km of 2d seismic) or the
drilling of an exploration well. No final agreement has been
reached yet with the ANH, but it is expected to be executed in the
near future.
Andres Gutierrez, President and
CEO of La Cortez, commented on the announcement, "We are very
pleased with the production levels obtained from the Mirto-2 N sand
during this initial period of testing. We are optimistic that this
will continue during the extended test and that the data gathering
will allow us to determine the potential of this reservoir. This
initial production will generate cash flow to the company to cover
some of the costs associated with our operations in the country. We
continue aggressively to evaluate other opportunities in a variety
of basins in Colombia."
About La Cortez Energy, Inc.
La Cortez Energy, Inc. is an early stage oil and gas exploration
and production company currently pursuing a business strategy in
the energy sector in South
America, with an initial focus on identifying oil and gas
exploration and production opportunities in Colombia. To that end, the Company has
established a branch, La Cortez Energy Colombia, Inc., with offices
in Bogotá, Colombia, and has
signed a Joint Operating Agreement for a 50% working interest in
the Putumayo 4 block and a Joint Venture agreement for a 20%
working interest in the Maranta block and has acquired the
interests of Avante Colombia in the Rio de Oro and the Puerto Barco
fields, all in Colombia.
For more information, please contact the Company's Investor
Relations department at 941 870 5433 or by email
info@lacortezenergy.com
www.lacortezenergy.com
Forward-Looking Statements
Certain statements in this news release are forward-looking
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are subject to risks and uncertainties.
Words such as "expects," "intends," "plans," "may," "could,"
"should," "anticipates," "likely," "believes" and words of similar
import also identify forward-looking statements. Forward-looking
statements are based on current facts and analyses and other
information that are based on forecasts of future results,
estimates of amounts not yet determined and assumptions of
management. There can be no assurance that the Putumayo 4, Maranta
and Rio de Oro and Puerto Barco projects will be successfully
developed. Actual results may differ materially from those
currently anticipated due to a number of factors beyond the
reasonable control of the Company, including, but not limited to,
the Company's ability to identify corporate acquisition and/or
joint venture opportunities in the energy sector in Colombia, Peru and Brazil and, more generally, in Latin America, and to establish the technical
and managerial infrastructure, and to raise the required
capital, to take advantage of, and successfully participate in
such opportunities, future economic conditions, political stability
and energy prices. Additional information on risks and other
factors that may affect the business and financial results of the
Company can be found in filings of the Company with the U.S.
Securities and Exchange Commission.
SOURCE La Cortez Energy, Inc.