Petrolifera's La Pinta well reaches 10,600 feet
2009-04-17 17:18 ET - News Release
Mr. Gary Wine reports
PETROLIFERA PROVIDES CORPORATE AND OPERATIONAL UPDATE
Petrolifera Petroleum Ltd. has provided the following progress update on operations and corporate activities.
Colombia
The La Pinta 1 exploration well, which is currently being drilled on Petrolifera's 100-per-cent-owned Sierra Nevada licence in Colombia, was at a depth of approximately 10,600 feet as of April 16, 2009. It is now anticipated the well will be drilled to a final total depth of approximately 11,000 feet. Petrolifera continues to be encouraged by results encountered during the drilling of the La Pinta 1 well, based on hydrocarbon mud log shows and the interpretation of intermediate logging runs. The drilling of the well is significantly behind the originally anticipated schedule, due to problems which were encountered, firstly while attempting to run the 9-5/8ths-inch intermediate casing in the upper section of the wellbore and subsequently, challenges arising from instability in the lower section of the well. The former problem in the upper part of the well was resolved and the instability in the lower section of the wellbore now appears to be under control. Due to the downhole instabilities, it has been decided to attempt to complete the well at a depth of 11,000 feet instead of the originally planned depth of 13,000 feet. An application in this regard has been submitted to ANH, the Colombian government agency that regulates such activity and a decision is anticipated shortly. Petrolifera's management believes that all the geological objectives of the well, and contractual obligations of the licence will be met with the well terminating at a depth of 11,000 feet. Further evaluation is anticipated to occur by testing, after the well is logged and the bottom portion of the wellbore is cased.
Peru
On April 16, 2009, Petrolifera was awarded block 133, which is contiguous with the western boundary of the company's block 107 in the Ucayali basin onshore Peru. Block 133 comprises approximately 979,000 acres. The work commitments on this block for the first period (18 months) primarily comprise geological field studies and, as such, are not capital intensive. This licence represents important protection acreage for Petrolifera in relation to its planned activities on block 107 in future years.
In May, 2009, in accordance with the contract terms of block 107, Petrolifera will be relinquishing approximately 1.6 million acres, or approximately one-half of the original 3.2 million acres which comprise block 107. Petrolifera believes it will be retaining the most prospective acreage under block 107, based on its interpretation of the 950-kilometre (km) 2-D seismic program acquired over the acreage by the company in 2007 and 2008. After the required relinquishment and the award of block 133, Petrolifera will control approximately 4.5 million acres in Peru.
Argentina
As recently announced, Petrolifera recently commenced drilling on its 100-per-cent-owned Gobernador Ayala II (GA II) concession, located in La Pampa province, Argentina. As of mid-April, 2009, Petrolifera has drilled and completed five wells on the block and is very encouraged by the results to date, based on hydrocarbon shows and limited testing results. Petrolifera anticipates drilling up to an additional five wells on this block before the expiry of the exploration phase. A request has been submitted to the government of La Pampa to convert the GA II concession from an exploratory to a production status.
Corporate
The company's annual meeting will be held in Calgary on May 6, 2009, on which date its results for the three months ended March 31, 2009, will be released. A conference call to discuss first quarter 2009 results will be scheduled for the following morning, May 7, 2009, and call in information will be included in the news release.
The company's annual report for 2008 has been mailed to all shareholders of record and has been posted on its website.
The company's disposition process with respect to its Argentinean interests is continuing on schedule.
We seek Safe Harbor.
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