Veraz Petroleum Ltd.

Veraz Petroleum Ltd.

August 30, 2011 08:30 ET

Veraz Petroleum Ltd. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2011) - Veraz Petroleum Ltd. ("Veraz" or the "Company") (TSX VENTURE:VRZ) and its joint venture partner Petrominerales Peru S.A.C. ('Petrominerales') held their quarterly Operations Committee meeting recently. Petrominerales provided an operational update for blocks 126, 141 and 161 in Peru. Veraz has a 20% working interest in each of the three blocks.

On Block 126, situated in the Ucayali basin of east central Peru, significant operational progress has been made in anticipation of the spud of the La Colpa 2X well in October 2011. The logistics base at Nueva Italia is over 50% completed with much of the key infrastructure now in place. Construction at the Sheshea logistics base is also underway with both camps slated for completion early in the fourth quarter. Construction of the La Colpa 2X drilling location is ongoing and should be completed in September.

A drilling rig has been contracted for the drilling program and now, with the conclusion of a detailed maintenance program in Pucallpa, the rig is scheduled to be transported by barge to Nueva Italia shortly. Transportation of the rig to the La Colpa drill site and rig up are anticipated to begin in late September with the drilling of the La Colpa 2X well slated to begin in the fourth quarter. The drilling program anticipates the La Colpa 2X well being drilled in two stages. The first phase will see the well drilled to the top of the Permian Copacabana formation. At this point the well will be cased and two primary zones, the Agua Caliente and Cushabatay-Ene tested. Once testing of the shallow targets is completed, drilling will continue to total depth and the deeper reservoirs will be tested. This approach to drilling should help mitigate formation damage to the shallower reservoirs and will ensure that well results will be obtained from the shallow targets before year end 2011. Drilling and testing of the entire La Colpa 2X well are anticipated to be completed by early 2012, the rig will then be moved to the Sheshea 1X location.

As mentioned in the April 28, 2011 Operations update, Environmental Impact Assessments for blocks 141 and 161 will be required before the acquisition of 2D seismic can begin. Work is ongoing in both areas and updates will be provided as progress unfolds.

Veraz Petroleum Ltd. is a junior South American focused oil and gas exploration company based in Calgary, Alberta.

Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "plan" and similar expressions are intended to identify such forward-looking statements. This press release contains forward-looking statements pertaining to, without limitation, our estimated 2011 drilling budget and the components thereof, the exploration and development operations to be conducted on each of our blocks in 2011 and in some cases 2012, and the anticipated timing for commencing and completing certain of such operations. We have made various assumptions relating to the forward-looking statements contained herein, including in respect of our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof. Although Veraz believes that the expectations reflected in these forward-looking statements, and the assumptions on which they are made, are reasonable, undue reliance should not be placed on them as Veraz can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions and are based on various assumptions, by their very nature they involve inherent risks and uncertainties that contribute to the possibility that the forward-looking statements may not be accurate, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the impact of weather conditions on our ability to execute our development programs; local opposition from indigenous communities; our reliance on Petrominerales Peru S.A.C. as operator; risks inherent in oil and gas operations, including geological, technical, drilling and processing problems; the impact of competition; failure to obtain requisite third party and regulatory consents and approvals; the potential for cost over-runs; the possibility that we will need additional financing to fund our budget and the possibility that such financing may not be available at all or on acceptable terms; and the other factors described in our public filings (including our Annual Information Form) available at Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this press release are made as of the date hereof and Veraz undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.


Contact Information

  • Veraz Petroleum Ltd.
    Gerardjan ("Oppe") Cosijn
    President and Chief Executive Officer
    (403) 514-0380

    Veraz Petroleum Ltd.
    Colin Christie
    Vice President, Finance and Chief Financial Officer
    (403) 514-0380