Petrolatina Energy Plc (“PetroLatina” or the “Company”) an independent oil and gas exploration, development and production company, focused on Latin America, provides the following technical data on Serafin well #1 that confirms expectations.
Flow Test data
On February 13, 2007 the fourth point of the test (on a 48 hour extended flow rate) was completed through a 40/64” choke with a stable flow rate of 14 million cubic feet per day of gas, a flowing tubing head pressure of 1530 psi and a shut in casing pressure of 1716 psi.
Results of detailed bottom hole pressure data and surface gas analysis
Gas samples were taken in the last 10 hours of the initial flow test and analysed using gas chromatography by Core Laboratories and showed the gas gravity to be 0,566 relative to air with the following composition;
Methane: 97.14%
Nitrogen: 2.67%
Carbon Dioxide: 0.06%
Ethane: 0.12%
Propane: 0.01%
Initial reservoir data used in calculations were:
Reservoir thickness: 16 feet
Porosity: 27.3%
Bottom Hole Temperature: 126.6oF
Analysis of the pressure recorder performed by consultant reservoir engineer Griffin Petroleum Consulting Ltd confirmed the following data:
Permeability: 1440 mD
Skin: 17.2
Non-Darcy skin factor: 0.75 skins/MMscfd
Reservoir Pressure: 1966 psi (at gauge depth)
Drainage radius: 1640 feet
Calculated Reservoir Volume: 5.3 billion standard cubic feet of gas in place
Results from data analysis confirm the Company’s initial evaluation of the gas reservoir and as a result engineering work has been commissioned for surface facilities and pipeline design and installation.
Petrolatina is currently in negotiation with several potential gas customers and commercial gas sales are expected in the second quarter of 2007.
Greg Smith, Chairman and CEO commented:
“We are delighted to be able to provide these positive technical results confirming our earlier announcement relating to the testing of the Serafin gas well. The additional cash flows generated from this project will support the Company’s operational growth and development throughout PetroLatina’s assets in Latin America.”