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Petrolatina Energy (PELE)

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Thursday 14 April, 2011

Petrolatina Energy

First Quarter Production Update

RNS Number : 8832E
Petrolatina Energy PLC
14 April 2011
 



14 April 2011

 

PetroLatina Energy Plc

("PetroLatina" or the "Company")

 

First Quarter Production Update

 

PetroLatina (AIM: PELE), the independent oil and gas exploration, development and production company focused on Latin America, announces a production update in respect of the first quarter of 2011.

 

The Company achieved total gross production from its Tisquirama, La Paloma and Midas licence blocks located in the Middle Magdelana Valley, Colombia, in the three months to 31 March 2011 of 193,790 barrels of oil ("bbls") (2010 equivalent period: 155,323 bbls) and total net production of 90,536 bbls (2010 equivalent period: 72,465 bbls) at an average gross production rate of 2,154 barrels of oil per day ("bopd") (2010 equivalent period: 1,726 bopd) and an average net production rate of 1,006 bopd (2010 equivalent period: 805 bopd).

 

As announced previously, the Serafin-1 gas well located in the Company's Tisquirama licence block is currently on an extended 6 month production test at a flow rate of 5.5 MMscf/d of gas and a well pressure of 1,850 pounds per square inch ("psi"). The well has, during the test period to date, achieved total gross production of 95.98 MMscf of gas (15,997 barrels of oil equivalent ("boe")) and total net production of 44.15MMscf (7,359 boe). Gas produced during the 6 month extended test period is being sold to Ecopetrol S.A. at 90% of the regulated price for Texaco for Barranca-Ballena's gas (as regulated by CREG, the Regulatory Commission of Energy and Gas of Colombia). The regulated price is currently $4.2562/million British thermal unit ("BTU"). The Serafin-1 well is jointly owned by PetroLatina (50%) and PetroSantander Corporation (50%).

 

The Company expects to release the results of an updated independent reserves report commissioned from Ryder Scott Company, L.P. and various geological and petrophysical studies during the current quarter.

 

 

Juan Carlos Rodriguez, Chief Executive of PetroLatina, commented:

 

"Our first quarter average production rates and the initial results to date from the Serafin-1 gas well have been very encouraging and in line with our expectations. We continue to pursue our strategy of seeking to increase production and reserves and expect to resume our development drilling in a more effective and low risk manner later this year."

 

Mr Menno Wiebe, a Non-executive director of the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules.  Mr Wiebe is a Petroleum Geologist and has been a Member of the American Association of Petroleum Geologists for more than 30 years and a Member of the Geological Society for more than 7 years.

 

 

Enquiries:

 

PetroLatina Energy Plc

Juan Carlos Rodriguez, Chief Executive Officer

 

Tel: +57 1627 8435

Pawan Sharma, Executive Vice President - Corporate Affairs

Tel: +44 (0)20 7766 0081



Strand Hanson Limited


Simon Raggett / Matthew Chandler

Tel: +44 (0)20 7409 3494



Evolution Securities Limited


Chris Sim

Tel: +44 (0)20 7071 4304



Financial Dynamics


Ben Brewerton / Susan Quigley

Tel: +44 (0)20 7831 3113

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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