Veraz Petroleum Ltd.

Veraz Petroleum Ltd.

April 26, 2012 17:21 ET

Veraz Petroleum Ltd. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - April 26, 2012) - Veraz Petroleum Ltd. ("Veraz" or the "Company") (TSX VENTURE:VRZ) announced today that the testing of the La Colpa 2X well has been completed and that no hydrocarbons were encountered.

Log analysis and sample evaluation had suggested potential in several zones; namely in the Tarma sandstone and in several porous intervals in the Copacabana carbonates. The Tarma was completed first; little fluid was produced and no oil recovered. Pressure information indicated the permeabilities were too low for the interval to be considered economic. The Tarma was suspended and completions were initiated on several porous intervals in the Copacabana. Despite encountering oil and gas shows in the samples while drilling, it appears the entire Copacabana section has been flushed with fresh water. Unusually low salinities in the formation waters complicated log analysis as fresh water produces a similar high resistivity log signature to that of hydrocarbons. Although excellent reservoirs were encountered, with flow rates of up to almost 4,000 barrels of fluid per day, only water was produced.

As discussed in the Corporation's April 11, 2012 press release, the Corporation currently has insufficient funding to participate in the upcoming Sheshea 1X well, which is now scheduled to commence drilling in July 2012. Management and the Board of Directors have been actively engaged in remedying this situation, although no firm solution has yet been defined. The Corporation will update the market in this regard as circumstances warrant.

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, the planned drilling of the Sheshea 1X well and related time frame, and our inability to finance our participation in such well and intention to remedy this situation. We have made various assumptions relating to the forward-looking statements contained herein, including in respect of our ability to obtain financing to participate in the Sheshea 1X well. 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 potential for cost over-runs and our potential inability to fund our share of such cost over-runs; the possibility that we will not be able to obtain additional financing to fund our budget at all or on acceptable terms; the possibility of defaulting under contracts governing our interest in our properties and the resulting penalties that we may suffer as a consequence thereof, which under certain circumstances could include forfeiture of our interest in our properties and the related agreements and licenses; and the other factors described in our public filings 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

    Veraz Petroleum Ltd.
    3520, 350 - 7th Avenue SW,
    Calgary, Alberta, Canada T2P 3N9
    403.514.0383 (FAX)