Petrominerales Ltd.
TSX : PMG

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

Petrobank Energy and Resources Ltd.

July 29, 2009 23:56 ET

Petrominerales Updates Exploration Drilling Activities

BOGOTA, COLOMBIA--(Marketwire - July 29, 2009) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG), a 67% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG), announces that the Chiguiro Oeste-1 and Corcel Boa-1 exploration wells have been cased as potential oil wells. The Corcel-F1 exploration well, originally cased as a potential oil well, will be re-completed for water disposal after testing non-commercial rates of hydrocarbons.

Chiguiro Oeste-1 commenced drilling on July 12, 2009 and reached a total depth of 4,984 feet on July 19, 2009. Electric logs indicate 56 feet of potential net oil pay in the Mirador formation. We have made the decision to case the well and we expect to have the results of the testing program by the end of August. The Chiguiro Oeste-1 well is the second of our 2009 three well heavy oil exploration drilling program in the Llanos basin. Following completion of testing operations at Chiguiro Oeste-1, we will be moving the rig to the Rio Ariari block to drill Rio Ariari-1, which we expect to commence drilling by the end of August.

Boa-1, previously named Corcel-B1, commenced drilling on June 26, 2009 and reached a total depth of 12,875 feet on July 25, 2009. Electric logs indicate 48 feet of potential net oil pay in the Lower Sand 1 and Lower Sand 2 formations. The potential pay in the Lower Sand 2 was not expected but is indicative of the multi-zone potential in Corcel. The well has been cased and we expect to have the results of the testing program by the end of August.

Corcel-F1 commenced drilling May 10, 2009 and reached a total depth of 12,830 feet on June 7, 2009. Production tests conducted on the Lower Sand 1, Guadalupe and Mirador formations were completed July 29, 2009. These tests indicated that all zones of interest are wet or cannot produce hydrocarbons at commercial rates. Corcel-F1 was the first of our Corcel exploration wells drilled on the east side of the main Corcel fault. Petrophysical data indicates that hydrocarbons have migrated through the reservoir quality rocks encountered in F1, indicating the potential for new play concepts at Corcel, and will be incorporated into our geological model going forward. The well will now be completed for water injection service.

The drilling rig at Corcel is now being mobilized to Corcel-A2, where it will drill a side-track, targeting the top of the Corcel A structure. Corcel-A4, the structurally highest well, is not draining the top of the A structure efficiently due to a poor cement job. The rig will then be mobilized to our Guatiquia block for a two-well exploration program targeting the Percheron and Candelilla structures prior to returning to Corcel to continue our ongoing Corcel exploration program. We have completed the acquisition of 337 square kilometers of 3D seismic over our Castor, Mapache, Casanare Este and Rio Ariari blocks. We expect to finish recording the remaining 85 square kilometers of 3D data over our Casimena block by mid-August. These acquisition programs will satisfy our current seismic phase commitments on these blocks. Our enhanced 3D database is expected to further define previously identified leads and structures derived from our extensive 2D data set.

Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "will", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to results from drilling, logging and testing operations and the timing of projects. 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.

Petrominerales Ltd. is a Latin American-based exploration and production Company producing oil in Colombia with 16 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins and 2.6 million acres in the Ucayali Basin of Peru. Petrominerales is 67% owned by Petrobank Energy and Resources Ltd. (TSX:PBG).

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
    011-571-629-4723 (FAX)
    Email: ir@petrobank.com
    Website: www.petrominerales.com