Petrolifera Petroleum Limited has announced that its RN.PM a-1032 well, situated southwest of the recently-tested 1019 oil well on the northern portion of its Puesto Morales Block in the Neuquén Basin, Argentina, is in the process of being cased as an indicated multi-zone oil discovery after completion of drilling and logging procedures. This marks the fourteenth successive oil well or indicated oil well drilled by the company on its Argentinean concession since late 2005. There have been no dry holes and many of the wells are multi-zone discoveries of light gravity crude oil and/or natural gas, in solution or non-associated in the Quintuco Formation.
As a consequence, Petrolifera's production of crude oil has consistently increased since late 2005 from about 300 barrels of oil equivalent per day (boe/d) to around current levels of approximately 12,000-12,500 boe/d, including current natural gas sales of approximately 3.5 mmcf/d, over double previous volumes. These are being delivered to a local market through a recently-expanded low pressure gas line. Additional natural gas volumes are anticipated in 2007 once a new high-pressure natural gas pipeline, connecting to existing infrastructure in the region, is completed. Initial volumes are then anticipated to approach approximately 20 mmcf/d, with further increases possible over the balance of 2007, upon completion of a new gas plant and related facilities, targeted for the third quarter 2007.
Further crude oil production increases are also anticipated by year end 2006 as the company''s 100 percent-owned 1019, 1018 and 1032 wells are completed and placed onstream, productive capacity of other wells is more fully realized and remedial work is conducted at previously-drilled wells during the ensuing month before the company's anticipated 50-well 2007 drilling program is reactivated in mid-January.
