Petrominerales Ltd.
TSX : PMG

Petrominerales Ltd.
Petrobank Energy and Resources Ltd.
TSX : PBG
OSLO STOCK EXCHANGE : PBG

Petrobank Energy and Resources Ltd.

July 14, 2008 21:07 ET

Petrominerales to Case Corcel-C1 Exploration Well

BOGOTA, COLUMBIA--(Marketwire - July 14, 2008) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG), a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank"), is pleased to announce an operational update including results from our recently drilled Corcel-C and Castor exploration wells.

Corcel Block

Our Corcel-C1 exploration well spudded on May 23, 2008 and was drilled directionally to a total vertical depth of 12,950 feet. Well logs indicate 77 feet of potential net oil pay in the Guadalupe and Lower Sand 1 zones and we are proceeding to case the well as a potential oil producer. The initial completion in the Lower Sand interval will be conducted with the drilling rig and is expected to be completed over the next two weeks. The drilling rig will then either drill a Corcel-C2 well on the top of the C structure or move to drill a well on the D structure.

We are also sequentially completing and individually testing a number of sands in our Corcel-A4 well and we expect to have production results from the Guadalupe and Mirador zones within the next two weeks. Well logs indicate 177 feet of potential net oil pay in the Guadalupe and Mirador formations.

Our Corcel production facilities have now been upgraded to handle up to 70,000 barrels of fluid per day which will accommodate our short-term drilling plans. These facilities will continue to be upgraded to handle up to 140,000 barrels of fluid per day by the end of 2008 and up to 180,000 barrels of fluid per day in 2009.

Our 3D seismic acquisition program is also underway, covering an additional 100 square kilometres of the Corcel Block and approximately 35 square kilometres of the adjoining Guataquia Block. Our existing 3D seismic data set only covers 15% of our Corcel Block, these new seismic programs will allow us to evaluate significant additional acreage on trend with our initial Corcel discoveries.

Castor Block

Our Castor-1 exploration well was drilled to a total vertical depth of 10,034 feet and, based on formation evaluation information, the decision was made to abandon the well. We plan to shoot additional seismic to evaluate an extended portion of the 108,741 acre Castor Block before drilling our next Castor exploration well.

Casanare Este Block

As previously announced, our Casanare Este-2 well reached a total vertical depth of 10,130 feet on February 27, 2008. The well was completed as a potential oil well and the first of three potential zones was completed with the drilling rig but tested wet. Originally, we had planned to complete the additional horizons in the well with a workover rig but we have now made the decision to abandon the well, based on additional analysis and results from the offsetting Castor-1 well. Before drilling our next Casanare Este exploration well, we plan to shoot additional seismic on the Block.

Mapache Block

Our Mapache-1 and 2 exploration wells, have been cased as potential oil wells in the Mirador and Carbonera formations. Both of these wells will be tested with a service rig, following completion and testing operations in Corcel.

Production Update

Based on field estimates, production averaged 7,339 barrels of oil per day ("bopd") in the second quarter of 2008 and 8,717 bopd in the month of June 2008. Second quarter production was impacted by the Corcel-A1 and A2 wells being offline for workover operations for 24 and 15 days, respectively.

Petrominerales Ltd.

Petrominerales Ltd. is a Latin American-based exploration and production company producing oil in Colombia with 15 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Petrominerales is 76.4% owned by Petrobank (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 the timing of capital projects and the results of operations. 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 Colombian Country Manager
    (403) 750-4400 or 011 571 629 2701