PELE Petrolatina

 

TIDMPELE 
 
RNS Number : 2830J 
Petrolatina Energy PLC 
26 March 2010 
 

FOR IMMEDIATE RELEASE 
 
Friday 26 March 2010 
 
                            PetroLatina Energy Plc 
                        ("PetroLatina" or the "Company") 
                   Operations Update - Zoe-1 Exploration Well 
 
PetroLatina (AIM: PELE), an independent oil and gas exploration, development and 
production company focused on Latin America,provides the following update on its 
Zoe-1 exploration well. 
 
As previously announced on 8 February 2010, the Zoe-1 exploration well was 
drilled on the Midas Block to a depth of 10,924 feet.  Wireline logging 
indicated two potentially oil bearing sections in the Umir formation and the 
Lisama formation.  Initial testing of both formations has now been completed. 
 
The Umir section was found to be over pressured and a stable flow of 
approximately 42 barrels per day ("bopd") of 23 degree API oil was recorded. The 
well currently continues on test and the water cut has reduced to approximately 
5 per cent. and is declining further. Based on the test results and using 
petrophysical parameters derived from the well,  seismic data and mapping of the 
subthrust structure, an oil bearing zone is present with, in the most likely 
case, original oil in place ("OOIP") of approximately 1.3 MMBO. 
 
Testing of the Lisama zone was initiated in 14 March 2010 and whilst this was 
found to be pressured at more normal levels, it flowed approximately 15 barrels 
of very heavy oil (tar) and water. A second test flowed water only. 
 
As a result, the Lisama section will be abandoned and the Zoe-1 well will only 
be used for production from the Umir sand. This sand continues to produce at 
approximately 42 bopd. Post-drilling remapping of the Zoe-1 structure and log 
analysis indicates that production from Zoe-1 remains economically viable, 
allowing PetroLatina to retain this block as a production area for the economic 
life of the field. 
 
Zoe-1 was not included in the Company's recently updated reserves assessment 
completed by Ryder Scott Company L.P. ("Ryder Scott") and announced last month. 
 
The Latco-1 rig, which drilled the Zoe-1 well, has now been mobilised to the 
Santa Lucia field where it is currently drilling the Santa Lucia-4 development 
well. 
 
Juan Carlos Rodriguez, Chief Executive Officer of PetroLatina, commented: 
"The Midas prospect was always recognised as being a higher risk stratigraphic 
exploration play but still attractive for drilling for its high potential 
reward. Although these test results were not as encouraging as we hoped, we will 
focus on moving the OOIP in the Umir section into Proved Reserves and produce 
from this formation.  We now look forward to the remaining exploration and 
development wells to be drilled in 2010." 
 
Mr Menno Wiebe, a Non-executive director of the Company, has reviewed and 
approved the technical information contained within this announcement in his 
capacity as a qualified person, as required under the AIM rules.  Mr Wiebe is a 
Petroleum Geologist and has been a Member of the American Association of 
Petroleum Geologists for more than 25 years and a Member of the Geological 
Society for more than 5 years. 
Enquiries: 
+-----------------------------------------------+--------------------+ 
| PetroLatina Energy Plc                        |                    | 
| Juan Carlos Rodriguez, Chief Executive        | Tel: +57 1627 8435 | 
| Officer                                       |                    | 
+-----------------------------------------------+--------------------+ 
| Pawan Sharma, Executive Vice President -      | Tel: +44 (0)20     | 
| Corporate Affairs                             | 7766 0081          | 
+-----------------------------------------------+--------------------+ 
|                                               |                    | 
+-----------------------------------------------+--------------------+ 
| Strand Hanson Limited                         |                    | 
+-----------------------------------------------+--------------------+ 
| Simon Raggett / Matthew Chandler              | Tel: +44 (0)20     | 
|                                               | 7409 3494          | 
+-----------------------------------------------+--------------------+ 
|                                               |                    | 
+-----------------------------------------------+--------------------+ 
| Evolution Securities Limited                  |                    | 
+-----------------------------------------------+--------------------+ 
| Rob Collins / Chris Sim                       | Tel: +44 (0)20     | 
|                                               | 7071 4304          | 
+-----------------------------------------------+--------------------+ 
|                                               |                    | 
+-----------------------------------------------+--------------------+ 
| Financial Dynamics                            |                    | 
+-----------------------------------------------+--------------------+ 
| Ben Brewerton / Susan Quigley                 | Tel: +44 (0)20     | 
|                                               | 7831 3113          | 
+-----------------------------------------------+--------------------+ 
Additional Information on PetroLatina Energy Plc: 
PetroLatina Energy Plc (AIM: PELE) is presently focused on Colombia where it 
currently holds 45% and 20% interests respectively in the Los Angeles and Santa 
Lucía fields on the Tisquirama licence, and a 100% interest in the Doña María 
field. In November 2007 the Company secured the extension of the Tisquirama 
licence for the economic life of the fields. In April 2006 the Group acquired an 
interest in two exploration blocks: an 85% interest in Midas and an 80% interest 
in La Paloma. PetroLatina also owns the Río Zulia-Ayacucho pipeline in the 
prolific Catatumbo basin which transports crude oil. Present 
exploration/exploitation activities in this area should increase the volume of 
crude oil transported resulting in an increased cash flow. Having sold its 
assets in Guatemala, PetroLatina retains a 20% interest in the first three wells 
and a 20% working interest in future wells. Further information is available on 
the Company's website (www.petrolatinaenergy.com). 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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