Petrominerales Ltd.
TSX : PMG

Petrominerales Ltd.
Petrobank Energy and Resources Ltd.
TSX : PBG

Petrobank Energy and Resources Ltd.

April 13, 2010 17:06 ET

Petrominerales Produces Yenac-1 Well at Over 1,800 bopd and Provides Exploration and Production Update

BOGOTA, COLOMBIA--(Marketwire - April 13, 2010) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG), a 66% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), is pleased to announce testing results from the Yenac-1 well. The well is currently producing over 1,800 barrels of 15 degree API oil per day ("bopd") at a 51% water cut from eight feet of perforations from two sands at the top of the Mirador formation.

On March 29, 2010 we reported that Yenac-1, the first well of our 2010 Central Llanos Basin exploration program, was cased as a potential oil well based on well logs that indicated 42 feet of potential net oil pay in the Mirador formation. Earlier testing recovered non-commercial amounts of 11 to 12 degree API oil from two intervals, while two other sands were wet. Upon completing the remainder of our testing program, one interval tested wet and we encountered oil in three separate Mirador intervals. Two of the three intervals are currently on production while the third interval can be produced at a future date.

Our near-term plan is to evaluate the well over an extended production test and prepare to drill follow-up development locations.

Capybara Structure, Castor Block

As previously reported, the second well of the Central Llanos Basin exploration program, Capybara-1 was cased as a potential oil well based on well logs that indicated 18 feet of potential net oil pay in two separate sands within the Carbonera C7 formation. We expect to have test results by mid-May.

Cerillo Structure, Casanare Este Block

The third well of our Central Llanos Basin exploration program, Cerillo-1, began drilling on April 7, 2010. We expect to reach total depth in early May.

Mapache Block

Following Cerillo-1, we plan to move the rig to the Mapache Block, to begin our ten-well exploration drilling program. These ten locations are southwest and up-structure from our existing discoveries along a seismically identified fault trend.

Seismic Programs

In October 2009, we initiated our 354 square kilometre 3D seismic acquisition program that will complete our 3D seismic coverage over the entire Corcel Block and the adjacent, contiguous portion of Block 31. We expect to finish recording this program by mid-May.

Production Update

Total Company production averaged 45,250 bopd in March and 38,315 bopd during the first quarter of 2010.

Petrominerales Ltd. is a Latin America-based exploration and production company producing oil in Colombia with 14 exploration blocks covering a total of 1.8 million acres in the Llanos and Putumayo Basins and 2.6 million gross acres in the Ucayali Basin of Peru. Petrominerales is 66% owned by Petrobank Energy and Resources Ltd. (TSX:PBG).

Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to production results, the timing of future drilling activities and drilling and completion results. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Contact Information

  • Petrominerales Ltd.
    John D. Wright
    President and Chief Executive Officer
    403.750.4400 or 011.571.629.2701
    or
    Petrominerales Ltd.
    Corey C. Ruttan
    Vice President Finance and Chief Financial Officer
    403.750.4400 or 011.571.629.2701
    or
    Petrominerales Ltd.
    Jack F. Scott
    Executive Vice President and Country Manager, Colombia
    403.750.4400 or 011.571.629.2701
    or
    Petrominerales Ltd.
    Kelly D. Sledz
    Finance Manager
    403.750.4400 or 011.571.629.2701