September Production 753 boed; Workover and
Reactivation Continues on 29 future wells
VANCOUVER, Nov. 13, 2017 /CNW/ - PentaNova Energy Corp. (the
"Company") (TSXV: PNO), which seeks to become Latin America's next significant oil and gas
developer, is pleased to announce operational advances on its
Colombian and Argentine properties.
September 2017 Production in
Argentina Averages 753
boed
PentaNova reports September 2017
production in Argentina of 753
boepd, from 52 active wells. This includes 498 bopd from the
Llancanelo heavy oil block where the Company holds a 39% working
interest, and 208 boepd from the Mariposa gas block in the San
Jorge Basin of Argentina in which
the Company holds an 18% interest, and 47 bopd from the KM8 field
in which the Company holds a 100% interest. A further 29 wells in
the Argentina's KM8 property
have been developed to be prepared for workover and
reactivation.
Negotiations Finalized to Move to the Full 50% Working
Interest to Develop Argentina's Llancanelo Heavy Oil Field in
Partnership With YPF, Argentina's
National Oil Producer
PentaNova has now completed the negotiations to complete the
planned move to 50% working interest in the Llancanelo field
through its fully owned subsidiary, Alianza Petrolera, through
which it already holds a 29% working interest. The Company has also
finalized the transfer of the 10% working interest acquired through
the Roch Acquisition as announced in the Company´s May 3, 2017 press release. Additionally, the
Company has completed negotiations with YPF, Argentina's largest energy producer, to
farm-in on an additional 11% working interest in the block.
The farm-in terms include an initial period of up to 6 months
for the partners to complete a joint planning and evaluation
program to complete the full development plan on the block, and
will see the Company jointly develop the technical plans to take
the block from its current 1,277 boepd (September average
production) with YPF into a large heavy oil development. The
Company will move to the full 50% working interest automatically
when customary closing conditions are completed, including those
associated with the transfer of the block with the Province of
Mendoza.
"The decision of YPF, Argentina's largest energy producer, to deepen
its partnership with PentaNova is a significant advancement for our
Company's strategic plan to become Latin
America's next significant oil and gas company," said
PentaNova Chairman and Executive Director Serafino Iacono. "We are also pleased that as we
develop one of Argentina's largest
heavy oil fields, PentaNova continues to generate revenue and
execute plans to reactivate wells on KM8 enabling that field to
move back into active development."
The Llancanelo area is located to the north of the Neuquén
Basin, in a basin-edge position in the province of Mendoza, 37 km
southeast of the city of Malargüe. The Llancanelo field was
discovered by YPF in 1937 after drilling two exploratory wells that
tested oil in the Tertiary levels. Thirteen deviated wells were
drilled in 2016 into a large heavy oil body and the field produced
an average of 1,277 boepd during the month of September from
conventional cold flow horizontal wells.
The Company, in close cooperation with partner YPF, is currently
embarking on a joint program to further evaluate the field,
continue to optimize the existing operations, and to evaluate
technologies to enhance the productivity of wells — all in
preparation of a new development drilling program to be initiated
in the new year. The plan will draw on PentaNova management's vast
experience in developing heavy oil assets, and include the
evaluation and implementation of techniques that have proven to be
highly successful in similar reservoirs in other heavy oil prone
regions such as Canada,
Venezuela and Colombia. The partners are currently planning
to mobilize a coil tubing unit into the field to complete workover
and testing activities.
Maria Conchita Drilling Program and Pipeline Plans Advance in
Colombia
The Maria Conchita work program is advancing well, with civil
work well underway. Mobilization of the drilling rig that is under
contract will start in approximately three weeks. Additionally, the
Company has received confirmation from five companies that they
will provide a proposal for construction and financing of the
pipeline to tie the wells into the national gas grid.
Discussions Underway to Map Out Sinu-9 Development
Program
American Oil and Gas farmed-in for half of PentaNova's 80%
beneficial working interest in the Sinu- 9 block, and has provided
a US$ 2.4 million non-refundable cash
payment. Further to the farm-out LOI announced by PentaNova and
American Oil and Gas on September 28,
2017, the companies have initiated detailed technical
discussions to establish the joint work program to be conducted on
the 313,639 acre block in the Lower Magdalena Valley Basin of
Colombia, where PentaNova will
continue to act as operator.
Offers Being Considered To Accelerate Reactivation of 29 KM-8
Wells in Argentina
PentaNova has developed 29 candidate wells for workover and
reactivation. An initial campaign of 11 wells is being finalized
for implementation. The Company has also completed initial planning
on candidate wells for a drilling program that is expected to be
initiated early in 2018, targeting both the shallow Glauconitica
formation, and the medium Comodoro Rivadavia and Mina del Carmen productive formations. PentaNova
has received offers from service companies to provide equipment and
services on the field on deferred payment plans, or paid out of
production. The Company is currently reviewing these offers to
determine the optimal way to accelerate the redevelopment
program.
About PentaNova Energy Corp.
PentaNova Energy Corp. is a publicly traded E&P company
focused on proven oil & gas plays in Latin America. The Company holds a large
diversified portfolio of unexploited assets in Colombia and Argentina, where it will leverage its
amplitude of technical expertise and proven track record building
companies and creating value.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the operations described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information 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 information, whether as a result of new
information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE PentaNova Energy Corp.