TORONTO, Feb. 11, 2015 /PRNewswire/ - Pacific
Rubiales Energy Corp. (TSX: PRE) (BVC: PREC) (BOVESPA: PREB)
today announced the results from the Kangaroo-2 appraisal well
sidetracks drilled in the shallow offshore, Santos Basin,
Brazil.
The Kangaroo-2 appraisal well drilled in exploration Block
S-M-1165, confirmed a 250 meter (820 foot) gross, 135 meter (443
foot) net oil column intersection in Paleocene and Maastrichtian
aged reservoirs, as announced November 26,
2014. The Company has a 35% participating interest in the
wells and five surrounding blocks. Karoon Gas Australia Ltd.
(ASX:KAR) ("Karoon") holds the remaining 65% interest and is
operator of the block.
Two separate extended production tests in the Kangaroo-2
appraisal wellbore (previously announced in a news release on
January 6, 2015), flowed 31° to 38°
API light oil at maximum rates of between 2,500 bbl/d and 3,700
bbl/d (stabilized rates of 1,820 bbl/d 3,450 bbl/d, respectively).
In early January, production testing in the Kangaroo-2
wellbore was completed and preparations began to commence a
side-track drilling program to better define potential resource
size and recovery factors. Side-track-1 was drilled to a down-dip
location to target potential reservoirs on the eastern side of an
interpreted fault. Side-track-2 was drilled in an up-dip location
to test reservoir and hydrocarbon potential towards the salt wall
seal.
The Kangaroo-2 down-dip side-track was drilled to a 2,745 meter
depth, (see Karoon's website: www.karoongas.com.au "Kangaroo-2
Appraisal Well Progress Report No 8") and a wireline program was
conducted. The down-dip side-track intersected oil bearing
Maastrichtian reservoir on the east side of the fault as expected.
Five reservoir fluid samples were recovered by wireline from a 50
metre (164 foot) gross oil column in the Maastrichtian section with
a net to gross of 36% and an average porosity of 24%. One sample
was opened on surface and contained 3 litres of 38° API oil.
As announced in a news release today by Karoon (see Karoon's
website: www.karoongas.com.au "Kangaroo-2 Appraisal Well Progress
Report No 9"), an up-dip side-track was drilled and penetrated oil
bearing sands in the Paleocene reservoir section. Five reservoir
fluid samples were recovered by wireline from a 37 meter (121 foot)
gross oil column with a net to gross of 60% and an average porosity
of 27%. One sample was opened on the surface and contained 2.9
litres of 39° API oil. Pressure data indicates that the Paleocene
oil bearing reservoir is in a separate pressure compartment from
those seen in the Kangaroo-2 borehole.
José Francisco Arata, President
of the Company, commented:
"We are very pleased with the results of the Kangaroo-2
appraisal well and the sidetrack drilling, which confirms a
significant light oil discovery on our blocks in the offshore
Santos Basin, in Brazil. We feel
very comfortable that this represents an oil discovery of
significance size. Based on the flow rates achieved, analysis by
the operator suggests that reservoir characteristics in the
structure are excellent and would support flow rates of 6,000 to
8,000 bbl/d in a vertical producing well, and higher rates in a
horizontal wellbore.
"The information obtained from Kangaroo-2 and the two side-track
wellbores is important for assessing the commerciality of the
Kangaroo oil field and will be used to update the field subsurface
development plan which will drive Front End Engineering and Design
('FEED') bringing the project a step closer to possible
execution.
"The Olinda Star drilling rig will now move to, and commence
drilling, the Kangaroo West-1 exploration well (the second firm
well in the program) to evaluate the salt-flank prospect on the
western side of Kangaroo salt structure, approximately 4.5
kilometers from Kangaroo-2. Due to its large prospect size and
proximity to Kangaroo, a successful outcome at Kangaroo West could
materially add to any possible development of the Kangaroo oil
field."
Pacific Rubiales, a Canadian company and producer of natural
gas and crude oil, owns 100% of Meta Petroleum Corp., which
operates the Rubiales, Piriri and Quifa heavy oil fields in the
Llanos Basin, and 100% of Pacific Stratus Energy Colombia Corp.,
which operates the La Creciente natural gas field in the
northwestern area of Colombia. Pacific Rubiales has also
previously acquired 100% of Petrominerales Ltd, which owns light
and heavy oil assets in Colombia
and oil and gas assets in Peru,
and 100% of C&C Energia Ltd., which owns light oil assets in
the Llanos Basin. In addition, the Company has a diversified
portfolio of assets beyond Colombia, which includes producing and
exploration assets in Peru,
Guatemala, Brazil, Guyana and Papua New
Guinea.
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 Futuros under the ticker symbols PRE, PREC, and PREB,
respectively.
Advisories
Cautionary Note Concerning Forward-Looking
Statements
This news 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. 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, Peru, Brazil,
Papua New Guinea, Guyana and Mexico; 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 13, 2014 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.
Translation
This news release was prepared in the English language and
subsequently translated into Spanish and Portuguese. In the case of
any differences between the English version and its translated
counterparts, the English document should be treated as the
governing version.
SOURCE Pacific Rubiales Energy Corp.
