Wednesday, August 31, 2011

PetroAmerica (PTA, PTAXF) Hits Light Oil in Columbia

Just posted the previous Flash on site and news from Las Maracas-2 drilling shows up.

Looks like PTA management made some right moves, and could be on the way to being a small oil producer.

If this keeps up, then the small production could fund the further exploration and no more dilution.

Disclosure:  Long PetroAmerica

Marco G.


Petroamerica Discovers Light Oil with the Las Maracas-2 Sidetrack Exploratory Well, Los Ocarros Block, Colombia


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Press Release Source: Petroamerica Oil Corp. On Wednesday August 31, 2011, 12:42 pm EDT
CALGARY , Aug. 31, 2011 /CNW/ - Petroamerica Oil Corp. ("Petroamerica") (TSXV:PTA.V) is pleased to announce a light oil discovery with its Las Maracas-2 Sidetrack well ( the "well") on the Los Ocarros Block, in the Llanos Basin of onshore Colombia .
During initial testing, the well produced, under natural flow from a 6-foot perforated interval in the Mirador Formation, light oil (37 degree API) at rates up to 938 barrels of oil per day ("bopd") with bulk sediment and water of 1.3% through a fully open choke size of 2 inches. The well was flowed on clean-up for 24 hours and was shut-in at a fluid rate of approximately 860 bopd with a water-cut of 2%. The pressure build-up analysis shows significant skin damage. More extensive testing with an electro-submersible pump will be performed using a workover rig at a later date.  This will provide more information on the well deliverability, reservoir properties and accumulation size.  The well has been completed as a future producer.
The petrophysical evaluation of the logs obtained while drilling ("LWD"), indicate a net oil pay thickness in the Mirador Formation of between 30 to 40 feet depending on which cut-off parameters are used and an average porosity of 21%. In addition to the Mirador Formation, drilling to the deeper reservoir objectives of the Gacheta and Une reservoir formations was planned, however, due to operational difficulties resulting from the high deviation angle, the final total depth ended up in the Mirador Formation. Nonetheless, this well has significantly reduced the exploration risk of these deeper reservoir objectives, which will be drilled by a vertical well at some point in the future.
Petroamerica announced on July 4, 2011 , that it had entered into a farm-in agreement with Parex Resources Colombia Ltd. Sucursal ("Parex") to farm-out 50% of its working interest in the Los Ocarros block (the "Farmout") which was derived from a farmout with Talisman ( Colombia ) Oil & Gas Ltd. ("Talisman"), announced on January 4, 2011 . The Las Maracas-2 sidetrack well was drilled as an exclusive operation, with Parex paying the cost of drilling and logging the sidetrack up to a cap of US$7.0 million. The cost of casing, testing and completing the well will be shared equally. Under the terms of the Joint Operating Agreement, the non-consenting party has the right to back-in to the discovery and retain its 50% working interest by paying 1000% of its working interest share of the cost of the exclusive operation to drill and test the Las Maracas-2 sidetrack well. In the event that the non-consenting party decides not to back-in, Petroamerica will hold a 50% working interest in the Las Maracas discovery, and a 25% working interest in the rest of the block.
The transfer of Petroamerica's 50% working interest pursuant to the Talisman farmout remains subject to approval by the Colombian National Hydrocarbon Regulatory Authority (the "ANH"), and the subsequent transfer of 50% of such working interest (net 25%) as part of the above noted farm out, is subject to approval by the ANH.
Petroamerica is a junior oil and gas company operating in Colombia and its shares are listed on the TSX Venture Exchange under the symbol "PTA".
" Nelson Navarrete "
President and CEO

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