CALGARY, Feb. 16, 2015 /CNW/ - PetroNova Inc.
("PetroNova" or the "Company") (TSX-V: PNA), a
company engaged in the exploration and development of oil and
natural gas resources in Colombia,
today provided an operational update for its
CPO-13 and Tinigua Blocks, in which PetroNova has a 20% and
40% working interest ("WI"), respectively.
"The CPO-13 Block has become the launching pad for reserve
growth for the Corporation and hence the base for expanding our
production capacity. The Pendare discovery is emerging as an
attractive producer even under relatively harsh economic scenarios.
Although we do not yet have conclusive flow tests, preliminary
results from the Tillava wells suggest that a similar trapping
mechanism of the contiguous fields are present in our block," said
Antonio Vincentelli, PetroNova's
President and CEO.
CPO-13 BLOCK
In the CPO-13 Block, during phase 2 of the exploration period
the Company drilled five wells of an ongoing eight well drilling
campaign; the remaining 3 wells have been postponed pending oil
market conditions. The results of drilling are presented below:
Step-out drilling of the Pendare Discovery:
Three step-out wells were drilled to establish the Pendare
accumulation extension towards the south, southwest and the
northeast of the block.
- The Pendare-4 well was spud on November 15, 2014 and drilled to 3,348 feet.
The mud and electric logs indicated high water
saturation in the targeted Basal Carbonera Sands. The well
was temporarily plugged allowing its eventual conversion
into a water disposal well to be used if necessary.
- The Pendare-6 well was spud on December
1, 2014 and directionally drilled to 3,642 feet total depth
("TD"). The electrical logs indicate approximately 68 feet of net
oil pay in two main sand sections: 25 feet corresponding to the
targeted top of the Basal Carbonera Sands (the producing sand in
the Pendare-1 and 2 wells) and 43 feet to a new sand not seen in
the previous Pendare wells. Production casing was run at 3,637 feet
and cemented, the lower interval was tested through perforations
yielding 14.3° API oil, but sanded up soon after the test was
initiated. A window was milled from 3,508 to 3,550 feet;
under-reamed, gravel packed and retested using a jet pump.
Stabilized flow was measured at 1,100 barrels of fluid per day
("BFPD") with 54% basic sediment and water. A total of 405
barrels of oil was produced during 40 hours of the jet pump
tests. The well was equipped with an electric
submersible pump ("ESP") and the drilling rig was moved to the
Pendare 3H well. The Company plans to conduct an extended test
after Agencia Nacional de Hidrocarburos ("ANH") approval is
obtained.
- Pendare-3H, a horizontal well, was spud on January 2, 2015 to optimize the production flow
rates of the Pendare discovery. The well was drilled from the
Pendare-2 well pad to 4,061 feet to the top of the Basal Carbonera
Sands where intermediate casing was set. A horizontal leg was
drilled to 5,454 feet measured depth ("MD"), cased with a slotted
liner and tested using a jet pump. The test established a
stabilized flow rate of about 446 barrels of oil per day ("bopd")
of 14.2° API oil (89 bopd net to the Company before royalty) with a
62.7 % watercut. The watercut steadily decreased for the duration
of the test from approximately 90% at the beginning of the test to
62.7% at the time the well was shut-in. A total of 417 barrels of
oil was produced during 46 hours of the jet pump tests. The
well has been equipped with an ESP and based on the estimated
productivity index is expected to produce at rates in excess of
those attained during the short hydraulic pump test.
Exploratory activity to corroborate the extension of the
Trapping Mechanism:
Two exploratory wells were drilled to verify the extension of
the trapping mechanism present in the contiguous field, both of
which found the Carbonera Basal Sand (the producing sand in the
adjoining field) to be oil-bearing:
- The Tillavá Este-1 well was spud on November 30, 2014 and drilled to 2,966 feet
TD. The electrical logs, confirmed by side wall
cores, indicated approximately 23 feet of net
oil pay over a gross interval of approximately 49 feet in
the Carbonera Basal Sands, however large washouts were
detected at the pay area. Casing was run at 2,960 feet
and cemented. A deeper sand from 2,839 to 2,845 feet, which
had no oil indication from the side wall cores but exhibited some
resistivity on logs, was perforated and tested water. The main
oil-bearing sand was perforated and oil was recovered
but sanded up soon after the test was initiated. A 41 foot
window was milled, under-reamed, gravel-packed and tested with
a jet pump recovering mostly water with 1 to 2% of heavy crude,
typical of the wells in adjoining block. The rig was moved to
the Tillavá Sur-1 location, rig-less logs were run in order to
try to determine the origin of the water intrusion and are being
interpreted at this time, nevertheless the logging tools were
impregnated with crude oil.
- The Tillavá Sur -1 well was spud on January 7, 2015 and drilled to 2,903 feet. Good
quality oil-bearing Carbonera Basal Sand was found between 2,671
and 2,683 feet. Casing was cemented and the well was tested with a
jet pump through a seven foot milled and gravel packed window. The
test yielded an unexpectedly low flow rate with only approximately
4% crude and the jet pump was found to be jam-packed with viscous
heavy crude. Several alternatives are being considered to test the
well again upon release of the drilling rig.
Other Activities on Block CPO-13:
The Pendare-1 well has been converted to a water injector as
part of the environmental license commitments and the production
installation upgrading program to handle the flow of the wells in
extended testing.
TINIGUA BLOCK
The ANH has formally approved the farm-out of 50% of the Tinigua
Exploration and Production Contract to Metapetroleum (a
subsidiary of Pacific Rubiales Energy; refer to PetroNova´s press
release dated February 28, 2014). The
Company plans to initiate drilling in second half of 2015 once
military support is obtained and socialization process
completed.
2015 PRODUCTION UPDATE
PetroNova's working interest production (before royalties) for
the third quarter of 2014 averaged 290 barrels of oil per
day. Upon extended testing of Pendare-6 and
Pendare-3H, production is expected to increase significantly.
About PetroNova:
The Company, through its subsidiaries, is engaged in the
exploration for, and the acquisition and development of, oil and
natural gas resources in South
America, specifically in Colombia. The Company's assets currently
include the Company's interests in the PUT-2 and Tinigua Blocks
located in the Caguan-Putumayo Basin in Colombia, both of which are operated by the
Company, and the non-operated Llanos Blocks located in the Llanos
Basin in Colombia. The common
shares of the Company trade on the TSX Venture Exchange under the
stock symbol "PNA".
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Caution Regarding Forward-Looking Statements and
Information:
Certain statements and information contained in this press
release constitute forward-looking statements and information
(collectively "forward-looking statements") within the
meaning of applicable securities laws. These statements relate to
future events or the Company's future performance. All statements
other than statements of historical fact are forward-looking
statements. The use of any of the words "anticipate", "intend",
"plan", "continue", "estimate", "budget", "targeting", "project",
"expect", "may", "will", "might", "should", "could", "believe",
"predict" and "potential" and similar expressions are intended to
identify forward-looking statements. Such statements represent the
Company's internal projections, estimates, expectations, beliefs,
plans, objectives, assumptions, intentions or statements about
future events or performance. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. Management believes
the expectations reflected in these forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included in this press release should not be unduly relied
upon.
In particular, this press release contains forward-looking
statements pertaining to the Company's future exploration and
development activities and the timing thereof, including extended
testing of discoveries on the CPO-13 Block; expected production
rates of certain wells, the drilling campaign on the Tinigua Block;
expected 2015 production volumes and/or rates; the military
support required to drill a first exploratory well on the
Tinigua Block; and the exploration, appraisal and development
operations expected for the first six months of 2015. With respect
to forward-looking statements contained in this press release,
assumptions have been made regarding, among other things: general
economic, market and business conditions in Colombia and globally; future crude oil and
natural gas prices; the continued availability of capital,
undeveloped lands and skilled personnel; the ability to obtain
equipment in a timely manner to carry out exploration and
development activities; the regulatory framework governing
royalties, taxes and environmental matters in Colombia and any other jurisdictions in which
the Company may conduct its business in the future; the ability of
the Company to obtain the necessary approvals, permits and licences
to conduct its operations; the applicability of technologies for
recovery and production of the Company's oil and natural gas
resources and reserves; the recoverability of the Company's oil and
gas resources and reserves; future capital and exploration
expenditures to be made by the Company; future sources of funding
for the Company's exploration program; the geography of the areas
in which the Company is exploring; and adequate weather and
environmental conditions.
Actual results could differ materially from those anticipated in
these forward-looking statements as a result of certain risk
factors, including, but not limited to: general economic, market
and business conditions; risks related to the exploration,
development and production of oil and natural gas; risks inherent
in the Company's international operations, including security and
legal risks in Colombia; risks
related to the timing of completion of the Company's projects;
competition for, among other things, capital, the acquisition of
resources and skilled personnel; actions by governmental
authorities, including changes in government regulation and
taxation; the failure of the Company to obtain the necessary
approvals, permits and licences to conduct its operations;
environmental risks and hazards; the availability of capital on
acceptable terms; the failure of the Company or the holder of
certain licenses or leases to meet specific requirements of such
licenses or leases; adverse claims made in respect of the Company's
properties or assets; failure to engage or retain key personnel;
geological, technical, drilling and processing problems, including
the availability of equipment and access to properties; failure by
counterparties to make payments or perform their operational or
other obligations to the Company in compliance with the terms of
contractual arrangements between the Company and such
counterparties; and the other factors discussed under the heading
"Risk Factors" in the Annual Information Form and the
Company's other continuous disclosure documents filed from time to
time with applicable securities regulatory authorities in
Canada and which may be accessed
on PetroNova's SEDAR profile at www.sedar.com.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. The forward-looking statements included in this
press release are expressly qualified by this cautionary statement
and are made as of the date of this press release. The Company does
not undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
SOURCE PetroNova Inc.