TORONTO, April 8 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG)
provided today an update on its drilling program:
The company spudded the La Creciente E-1 well (LCE-1) on April 6, 2008
with rig Saxon 133. The final depth of LCE-1 will be 12,027 feet, drilled
vertically, and the company is forecasting 50 days to reach final depth. The
well is located in the south-western portion of the La Creciente Block,
targeting the Ciénaga de Oro reservoir at Prospect "E", which is the third
structure to be drilled within the block. The company has already been
successful in its exploration of Prospects "A" and "D".
An oil-based mud will be used at LCE-1 in an attempt to reduce the
operational problems that have occurred while drilling the over-pressurized
shales of the Porquero formation. The well LCA-2st has been momentarily
suspended at 6,154 feet, after cementing the intermediate casing, while the
company awaits approval from the Ministry of Environment to use the oil-based
mud that will be tested at LCE-1.
At the Rubiales field the company has completed the RB-53 exploratory
well located in the northern sector of the field, 6 km from the RB-14 well,
which is located outside the limits of the commercial field in the "protection
area". RB-53 is a vertical well drilled to a final depth of 3,155 feet that
has encountered 22 feet of pay zone. The initial production was 167 bopd with
41% water cut and the oil potential is 400 bopd with 54% of BSW. The results
from the RB-53 well will allow the company to request an extension of the
commercial area of the Rubiales field, thereby incorporating an additional
12 km(2) to the production area. The possible reserves associated with this
well will be upgraded to proven and probable.
Since the company acquired the Rubiales field in July 2007, it has
drilled 18 wells of which 7 are vertical, 9 are horizontal and 2 are water
injectors. 76 total development wells have been drilled at the field, as well
as 7 appraisal wells.
Pacific Rubiales, a Canadian-based company and producer of natural gas
and heavy crude oil, owns 100 percent of Meta Petroleum Limited, a Colombian
oil operator which operates the Rubiales and Piriri oil fields in the Llanos
Basin in association with Ecopetrol S.A. the Colombian, national oil company.
The Company is focused on identifying opportunities primarily within the
eastern Llanos Basin of Colombia as well as in other areas in Colombia and
northern Peru. Pacific Rubiales has a current net production of approximately
19,050 barrels of oil equivalent per day, with working interests in the
Rubiales, Piriri and Quifa concessions and the Caguan, Dindal, Rio Seco, Puli
B, La Creciente, Moriche, Guama, Arauca, Tacacho and Jagueyes blocks in
Colombia and blocks 135, 137 and 138 in Peru.
Forward-looking statements: This document contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the Company's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management. For such
statements, we claim the safe harbour for forward-looking statements within
the meaning of the Private Securities Legislation Reform Act of 1995.