Petrolifera Petroleum announces new Sierras Blancas oil discoveryat Puesto Morales, Argentina and provides operating update
CALGARY, Dec. 3 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX)
announces today that the PMN 1038 well on the company's 100 percent-owned and
operated Puesto Morales Concession in the Neuquén Basin, Argentina has
recently tested light gravity crude oil at a rate of approximately 1,500 bbl/d
from the Sierras Blancas Formation.
The results are important as the well is situated between the company's
Northern and Central lobes of the Puesto Morales Norte Field and indicates
continuity between the two accumulations. The well will be completed and tied
in shortly and it is anticipated the well will be produced initially at a rate
of between 500 bbl/d - 1,000 bbl/d.
Four drilling rigs and four service rigs continue to operate for
Petrolifera on its Puesto Morales and Rinconada Blocks which comprise the
concession. Included in current drilling is the 1017 well, situated southeast
of the central lobe; this is the first deviated well to be drilled on the
concession using the Quintana No. 13 rig, which was imported into Argentina
and has greater drilling depth capacity.
This rig has been used to drill a number of water injection wells during its break-in period.
The company's water treatment, water injection and water handling facilities are scheduled
for a December 2007 startup, which should increasingly impact on overall
production levels during the ensuing 18 months, as the waterflood pressure
maintenance scheme becomes operative and effective.
Separately, Petrolifera advises that a commissioning ceremony was
recently held for the company's high pressure natural gas pipeline which runs
from the Puesto Morales Norte field to the Medanito area. It is anticipated
the pipeline will initially handle approximately 10 mmcf/d of natural gas,
including associated gas from the surrounding oil field and some
non-associated natural gas from the Loma Montosa and Sierra Blancas
Formations. The rated capacity of the new pipeline with in-place compression
is 35 mmcf/d, which would allow for continuing sales expansion.
Recently, Petrolifera tested 2.3 mmcf/d of natural gas and 20 bbl/d of
condensate through a 14 mm choke from its PMOx-1001 well, located on the
western border of the concession. It appears probable this well will be tied
into the new high pressure pipeline for immediate sale to available industrial
markets. Additionally, the company recently tested over 1 mmcf/d from a basal
Loma Montosa zone in the 1007 well, located within the Puesto Morales Sur
Field. Crude oil was also tested from the Loma Montosa Zone 10 in this well
and following a frac, it is anticipated the well will be completed as a dual
zone producer and tied in to production facilities.
In Peru, the company's 2D seismic program on Ucayali Block 107 is
proceeding favorably with encouraging preliminary results. The company is also
advancing discussions to secure a suitable heli-transportable drilling rig for
use in drilling a well or wells on Block 107 during the latter months of 2008
and into 2009. Drilling is also anticipated on Block 106 in the Maranon Basin
during 2009, following completion of the company's Environmental Impact
Assessment and shooting a 550 kilometer 2D seismic program in 2008.
In Colombia, several drillable prospects have been defined on the Sierra
Nevada I license and plans are progressing to secure drilling rig commitments
for the second half of 2008. Petrolifera is pleased with the quality of
prospects it has generated in Colombia, including their associated reserve
potential.
Petrolifera Petroleum Limited is a Calgary-based crude oil and natural
gas exploration and production company engaged in activity in Argentina, Peru
and Colombia. The company owns or controls in excess of 6.5 million acres of
petroleum and natural gas rights in sub-Andean basins in South America. As
disclosed in the company's recent Investor Presentation, which is posted on
its website at www.petrolifera.ca, production is expected to increase to a
targeted level of 14,500 boe/d by year end 2008, reflecting the impact of
development drilling, the waterflood at Puesto Morales, increased sales of
natural gas and the impact of the company's ongoing 69 well drilling program
in Argentina. No volume impact for drilling success in either Peru or Colombia
is factored into the company's production outlook.
AN INTERVIEW WITH ANDY GUSTAJTIS,
ANALYST WITH DOMINICK AND DOMINICK
(As of November 28, 2007)
D.P: There is an interesting play in South America after
what you have mention about Latin America – Petrolifera
Petroleum, which has had a little bit of problems in Argentina,
but for anyone who has seen the seismic on their
projects in Peru gets excited.
A.G: With Peru's Camisea Gas Project, Peru is now on
the radar screen as a country that has the potential for
elephant discoveries.
There is a pipeline into the Pacific Coast; there are moves now underway to bring this gas by
LNG into North America.
I think Petrolifera has a very competent, technical team running the Company.
They have been very successful in Argentina, they hand-picked
the two licenses they got in Peru. They obtained those
licenses before the global oil industry woke up to the opportunities
in Peru. The early seismic is confirming they
have a huge opportunity which will take time but I am not
long the stock for a short term flip.
With success Petrolifera could be a multi-billion Company.
These type opportunities are extremely hard to land.
A.G: Being a little bit of a gambler, I would basically think that Pacific Energy (if they could get this refinancing accomplished and out of the way) could prove to be quite an exciting story. I would put them as my number one favorite. I’m hopeful that we are going to see some new contracts being announced from Sustainable Energy in the next few weeks,
if not months and if that happens, I think the stocks could get some momentum and move to new highs. And I still think that Connacher is so unbelievably undervalued in relationship to what it offers, that I would have to put Connacher as a strong buy here.
Andy Gustajtis is an Officer and Managing Director of D&D Securities Company which is a member of the IDA and the Canadian Investor Protection Fund. His comments are believed to be reliable but we cannot represent that the information is accurate or complete and it should not be relied on as such. D&D Securities Company, its officers, directors or employees from time to time may hold shares, options or warrants on any issue included in this interview. D&D Securities Company has actively participated in financing of ARISE Technologies, Corridor Resources, Connacher Oil & Gas, Sustainable Energy and Pacific Energy. Comments made should not be construed as an offer or solicitation to buy or sell and securities.