Petrominerales Ltd.

Petrominerales Ltd.

May 17, 2013 02:21 ET

Petrominerales Awarded Three Blocks in the 11th Bid Round in Brazil

CALGARY, ALBERTA--(Marketwired - May 17, 2013) - Petrominerales (TSX:PMG)(BVC:PMGC) is pleased to announce that, following the Brazilian 11th Bid Round ("Bid Round"), administered by the Agencia Nacional do Petróleo, Gás Natural e Biocombustíveis of Brazil ("ANP"), we successfully bid on three blocks. We were awarded Block REC-T 106 and Block REC-T 107 in the Recôncavo Basin and Block TUC-T 177 in the Tucano Basin, all located in the state of Bahia, onshore Brazil.

Block REC-T 106 is comprised of 7,759 acres located in the southern portion of Sector SREC-T1 of the Recôncavo Basin. Our first phase work commitment consists of the acquisition of 10 square kilometers of 3D seismic. Block REC-T 107 is comprised of 7,561 acres located in the southern portion of Sector SREC-T1 of the Recôncavo Basin, near our Bom Lugar field. Our first phase work commitment consists of drilling two wells. Block TUC-T 177 is comprised of 46,505 acres located in the southern portion of Sector STUC-S of the Tucano Basin. Our first phase work commitment consists of drilling one well and the acquisition of 31 square kilometers of 3D seismic.

The three blocks awarded will be subject to ANP contracts, expected to be finalized in August 2013. Petrominerales participated in the Bid Round through our subsidiary, Alvopetro S.A. Extração de Petroleo e Gás Natural, and upon the execution of the ANP contracts, Petrominerales will hold a 100% interest in Block REC-T 106 and Block TUC-T 177 and a 75% interest in Block REC-T 107. All three blocks have an initial three year exploration phase.

The blocks acquired in the Bid Round cover 61,825 acres, allowing us to more than double our land position in Brazil to approximately 120,000 acres (103,000 net acres). The REC-T 106, REC-T 107 and TUC-T 177 blocks increase our exposure not only to the deep tight oil potential in the Gomo horizon but also add considerable exploration potential in shallower conventional reservoirs. Our initial focus will be to demonstrate the commercial deliverability of the Gomo sands using fracture stimulation technology.

Our vision in Brazil is to implement a large-scale, repeatable, low-risk, multi-well development program, utilizing advanced technology and completion techniques. We look forward to drilling our first wells in Brazil later this year.

Petrominerales Ltd. is an international oil and gas company operating in Latin America since 2002. Our high-quality land base and multi-year inventory of exploration and development opportunities in Colombia, Perú and Brazil provide long-term growth potential for years to come.

Forward-Looking Statements and Cautionary Language. Certain information provided in this press release constitutes forward‐looking statements. Specifically, this press release contains forward‐looking statements relating to the Company's future exploration and development activities and the timing for bringing wells on production. The forward‐looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the availability of capital, the success of future drilling and development activities, the performance of existing wells, the testing and performance of new wells, prevailing commodity prices and economic conditions, the availability of labour and services, the ability to transport and market our production, timing of completion of infrastructure and transportation projects, weather and access to drilling locations. 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 test results and performance of exploration and development drilling, recompletions and related activities; timing and rig availability; availability of transportation and offloading capacity, 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; and there is no representation by Petrominerales that the test results of any new exploration well or development well is necessarily indicative of long-term performance or ultimate recovery. 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.
    Corey C. Ruttan
    President and Chief Executive Officer
    +1.403.705.8850 or +571.629.2701

    Petrominerales Ltd.
    John Koch
    Chief Operating Officer
    +1.403.705.8850 or +571.629.2701

    Petrominerales Ltd.
    Kelly D. Sledz
    Chief Financial Officer
    +1.403.705.8850 or +571.629.2701