Update re Santa Lucia-4 Development Well
April 19 2010 - 2:00AM
UK Regulatory
TIDMPELE
RNS Number : 3624K
Petrolatina Energy PLC
19 April 2010
EMBARGOED UNTIL 7AM ON 19 APRIL 2010
19 April 2010
PetroLatina Energy Plc
("PetroLatina" or the "Company")
Update re Santa Lucia-4 Development Well
PetroLatina (AIM: PELE), the independent oil and gas exploration, development
and production company focused on Latin America, announces an operational update
in respect of the testing of the Santa Lucia-4 development well which was
recently drilled on the Tisquirama A Block. PetroLatina is the operator of, and
holds a 20% interest in the block.
The Santa Lucia-4 well, a commitment well, was drilled to a total measured depth
of 8,700ft and encountered the target La Paz sand at a measured depth of
8,295ft. The indicated net pay was 27ft, as expected. The well has now been on
test for approximately 20 days and is expected to produce at a gross rate of
approximately 240 barrels of oil per day when it is placed on commercial
production within the next two weeks. The well appears to have essentially no
water production.
The Santa Lucia-4 well is producing crude oil of 24 degrees API which is
considerably lighter than the 19 degrees API oil produced by other wells in this
field. At this time, the reason for this is not fully understood, it may relate
to a stratigraphic trapping mechanism, and the Company may drill additional
wells in the future to better understand the situation which could eventually
lead to an increase in the field's recoverable reserves.
Existing wells in the Santa Lucia field have individually produced up to 1.4
million barrels of oil and continue to produce at substantial rates with modest
water cut. It is believed that this high recovery results from an active water
drive in this field. These factors combine to create significant value to
PetroLatina despite the Company's relatively low retained interest in the block.
Juan Carlos Rodriguez, Chief Executive Officer of PetroLatina, commented:
"The Santa Lucia-4 well will increase the Company's production in the short term
while adding the potential for considerable recoverable oil over the longer
term. This well is the sixth of the eight commitment wells agreed in late 2007
as part of the negotiations to extend our license for the economic life of the
field. The Company bears a disproportionate share of the cost of these
commitment wells relative to its retained interest, but once the eighth
commitment well has been completed in due course it will thereafter receive a
considerably higher return per dollar invested in this field."
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 April 2006 the Group acquired an interest in two exploration blocks:
an 85% interest in Midas and an 80% interest in La Paloma. In November 2007 the
Company secured the extension of the Tisquirama licence for the economic life of
the fields. In February 2009 the Group acquired the Putumayo-4 block in which it
has retained a 50% interest. 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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