Pacific Rubiales Provides Strategic and Operational Update on Triceratops-2 Well, Papua New Guinea
TORONTO, May 22, 2012
TORONTO, May 22, 2012 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE)
(BVC: PREC) (BOVESPA: PREB) provided today a strategic and operational
update relating to the results of the recent testing of the
Triceratops-2 appraisal well where the Company holds a net 10%
non-operated participating interest in the well drilling on Petroleum
Prospective License 237 ("PPL-237"), onshore Papua New Guinea.
As announced earlier by the operator, InterOil Corporation (NYSE: IOC;
POMSoX: IOC), the Triceratops-2 well reached total depth of 2,236
metres (7,334 ft) in the Lower Limestone, and a drill stem test ("DST")
across a 228 meter (748 ft) open hole section in the upper reservoir
zone tested 17.6 MMcf/d gas with a measured condensate liquids content
of between 13.6 and 16.3 bbl per MMcf. Preliminary data from the test
indicates that the upper reservoir zone in Triceratops-2 is pressure
connected to the Bwata-1 well drilled 3.5 kilometers along trend and
which tested gas flows up to 28 MMcf/d. The test rates from the
Triceratops-2 well compare favourably with equivalent DST intervals in
wells drilled on the Elk/Antelope structure along trend. The
Elk/Antelope structure has independently certified best case contingent
resources of 8.6 Tcf gas and 129 MMbbl condensate.
Ronald Pantin, Chief Executive Officer of the Company, commented: "This
is a very exciting result and confirms our belief that the Triceratops
structure and PPL-237, along with earlier discoveries by InterOil in
the adjacent Elk/Antelope structure, indeed represents a world class
gas and condensate trend and provides the Company with the strategic
opportunity for early stage large resource capture on the doorstep of
the world's fastest growing primary energy markets. Not only is the
Triceratops structure in itself proving to be a new discovery of
significant magnitude, but additional prospects and leads on the large
PPL-237 block provide further potential resource upside."
The upper reservoir zone is underlain by an 80.5 meter (264 ft) marl and
argillaceous limestone interval that likely acts as a seal separating
it from an indicated lower reservoir zone. Wireline logs across this
lower zone suggest a potential dolomitic reservoir. Gas shows
encountered during drilling along with recovery of condensate in a DST
across a 29 meter (96 ft) interval indicate potential movable
hydrocarbons in the lower reservoir zone. The Triceratops-2 well did
not encounter a gas-water contact ("GWC") despite drilling below the
depth of a GWC identified in the adjacent Bwata-1 well, indicating that
the lower reservoir zone is in a different compartment.
The Company's evaluation of all the well, petrophysical, test and
seismic data to date, indicates a P50 structural closure of
approximately 10,000 acres with net pay of 1,700 feet, and high quality
reservoir with average porosities of 6% and water saturations of 20%,
for the Triceratops structure.
InterOil has indicated that it will proceed with casing the well and a
program of perforating and testing zones of interest including the
indicated lower reservoir zone. Testing through casing is expected to
yield more definitive results than those possible on limited DST's.
Below is a map showing location of PPL-237 and Triceratops structure,
Papua New Guinea
Pacific Rubiales, a Canadian-based company and producer of natural gas
and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a
Colombian oil operator which operates the Rubiales, Piriri and Quifa
oil fields in the Llanos Basin in association with Ecopetrol, S.A., the
Colombian national oil company, and 100 percent of Pacific Stratus
Energy Corp. which operates the La Creciente natural gas field. The
Company is focused on identifying opportunities primarily within the
eastern Llanos Basin of Colombia as well as in other areas in Colombia
and northern Peru. Pacific Rubiales has working interests in 43 blocks
in Colombia, Peru and Guatemala.
The Company's common shares trade on the Toronto Stock Exchange and La
Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on
Brazil's Bolsa de Valores Mercadorias e Futurosunder the ticker symbols PRE, PREC, and PREB, respectively.
InterOil Corporation is developing a vertically integrated energy
business whose primary focus is Papua New Guinea and the surrounding
region. InterOil's assets consist of petroleum licenses covering about
3.9 million acres, an oil refinery, and commercial distribution
facilities, all located in Papua New Guinea. In addition, InterOil is a
shareholder in a joint venture established to construct liquefaction
facilities in Papua New Guinea. InterOil's common shares trade on the
NYSE in US dollars.
This press 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, including in particular, statements concerning the drilling
of the Triceratops-2 well in the Triceratops fields, the
characteristics of the Triceratops reef structure and business plans
and strategies, the plans to obtain definitive test results from the
lower reservoir section and InterOil's exploration plans, benefits to
stakeholders and increased investment in Papua New Guinea. 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 or Peru; 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 14, 2012 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.
Boe may be misleading, particularly if used in isolation. A boe
conversion ratio of 5.7 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. 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
Billion cubic feet.
Billion cubic feet of natural gas equivalent.
Barrel of oil.
Barrel of oil per day.
Barrel of oil equivalent. Boe's may be misleading, particularly if used
in isolation. The Colombian standard is a boe conversion ratio of 5.7
Mcf:1 bbl and is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.