Petrolifera Petroleum Limited announced that testing of the Sierras Blancas Formation in its 100 percent-owned RN.PM.a-1010 well on the Puesto Morales/Rinconada Concession in the Neuquen Basin, Argentina is virtually complete and that it yielded flowing light gravity crude oil at calculated rates of 1,700 bbl/d, based on testing over extended periods of up to ten hours per test through 3/4 inch and one inch chokes. When combined with the previously reported flow rates through similar sized chokes from two zones in the Punta Rosada Formation, the well is capable of flowing light 35 degree API crude oil at a rate of approximately 4,200 bbl/d, based on these combined test results. This may not be indicative of a stabilized flow rate. No water was recovered on test from either formation, and the oil produced during the test contained modest amounts of associated natural gas consistent with previous tests in the region.
The initial calculated flow rate through two inch tubing from the Sierras Blancas Formation, before being choked back for testing purposes, was approximately 2,700 bbl/d of light oil; again this is not to be construed as a stabilized flow rate.
Upon completion of the Sierras Blancas testing, Petrolifera anticipates it will move up hole to test a prospective zone in the Quintuco Formation in the 1010 well before moving the service rig to the RN.PM.a-1011 location for testing of this well, which is standing cased.
The results at the 1010 well are very encouraging, especially with the prolific flow rates achieved from the Punta Rosada Formation, which was a secondary objective of the drilling program.
Petrolifera is proceeding with its program and associated engineering and design work to construct and install the infrastructure to be able to handle additional production volumes from the 1002, 1003, 1004, 1010 and subject to test results, the 1011 well, in addition to those volumes which might be secured from the 24 anticipated additional wells which, subject to rig availability, are budgeted to be drilled on the concession in the remainder of 2006.
In the interim, the company is producing at rates exceeding 2,000 bbl/d, with volumes primarily from the 1003 well, pending the availability of additional trucking capacity to handle added volumes until an appropriately-sized pipeline is constructed and available, which is targeted for around mid-year 2006.
Mr. Gary Wine, President of the Company, is also pleased to announce the appointment of Mr. Carlos A. Mombru to the position of General Manager, Petrolifera Petroleum (Americas) Limited - Surcusal Argentina, which is the company's Argentinean branch. Mr. Mombru is a Geologist and Engineer by training and has had a distinguished career in the South American oil industry. He has been active in the business since 1970, originally with the former Argentinean state oil company and more recently, for the past fifteen years, with a large private independent oil and natural gas company active throughout South America, including Argentina, Peru and several other countries. Mr. Mombru will be based at the company's office in Buenos Aires, Argentina and brings Petrolifera a strong and qualified indigenous representation. Mr. Mombru will report directly to Mr. Wine.