Petro Rubiales achieves record oil production and commences appraisal well campaign
VANCOUVER, Dec. 11 /CNW/ - Petro Rubiales Energy Corp. (the "Company" or
"Petro Rubiales") is pleased to announce that it has increased the production
of the Rubiales Field to a new record level of 25,046 barrels of heavy crude
oil per day.
This record production is a result of the continuous operational
improvement that the Company's wholly-owned subsidiary, Meta Petroleum Ltd.
("MPL") has carried out, since new senior management took control of the
Rubiales Field, located in the Llanos Basin, Republic of Colombia.
Since taking control of the Rubiales Field in July, gross production has
increased from 18,300 (4,739 net) to approximately 25,046 (9,095 net) barrels
of heavy crude oil (12.5 degrees API) per day. This performance re-affirms the
Company's strategic goal of achieving its projected net production of ~15,000
barrels of heavy crude oil per day in 2008, and ~45,000 barrels of heavy crude
oil per day in 2009.
The Company has also completed 30 percent of its appraisal drilling
program at the Rubiales Field, completing three of the ten appraisal wells
planned; the fourth appraisal well is currently being drilled. Preliminary
results have confirmed the geological model upon which the Company is basing
its production expansion plans.
The initial indication from the three completed wells, is that the
reservoir extends further towards the southeast than originally thought. The
extension allows management to be optimistic about the results that the
reserves certification study (now under way in co-ordination with
Houston-based, RPS Scotia, formerly known as Scotia Group Inc.) may yield. It
is anticipated that the results, from these three wells, will enable 85
million barrels of oil to be re-classified as proven reserves. The appraisal
drilling program will be completed at the end of February, 2008.
In November, the Company also implemented a new transport and commercial
scheme that has allowed it to increase its realized netback from US$23.40 per
barrel to US$47.25 per barrel for a volume of approximately 3,000 barrels per
day of Rubiales crude. The Company expects that when the infrastructure at the
Guaduas tank farm in central Colombia is completed, the facilities could
handle up to 20,000 barrels per day of diluted crude (completion of the
facility is expected in Q1, 2008).
The combination of doubling the net production and doubling the netback
since inception has placed the Company in a strong financial position for
further growth and development within Colombia.
Petro Rubiales, a Canadian-based company and producer of heavy crude oil,
now owns 100 percent of Meta Petroleum Limited, a Colombian oil and gas
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.
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.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.