PDP.TO: Anyone here owns or is looking at Petrolifera Petroleum ?
Think it grands buying some besides having an interest already on it trought CLL.TO... Someone already mentioned here this can be a (nice) monster going forward... I tend to agree !
Apretiate any inputs...
Petrolifera Petroleum provides activity update
Tuesday July 11, 9:56 am ET
CALGARY, July 11 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today that its current light gravity crude oil production from the Puesto Morales/Rinconada Concession in the Neuquén Basin, Argentina is approximately 6,500-7,000 bbl/d, primarily from its 1002, 1003, 1010 and 1011 wells drilled in late 2005 and early 2006.
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The company has now identified up to 54 Sierras Blancas/Punta Rosada locations for drilling on the two blocks which comprise its 95,000 acre concession. Of these, 22 wells are considered firm locations to be drilled over the ensuing six month period commencing in August, 2006, with the balance of 32 wells contingent upon the outcome of the firm locations. If warranted, these additional wells would be scheduled for drilling within the ensuing six-month period ending August 31, 2007 with the two rigs which are scheduled to be available to Petrolifera under long-term renewable contracts with two separate contractors. Included in the designated firm locations are two Sierras Blancas tests on the Rinconada block.
Accordingly, during the next twelve months Petrolifera will now focus its drilling activity on developing the more prolific Sierras Blancas and Punta Rosada Formations and will defer drilling additional Quintuco development wells for crude oil until the program to develop the superior reservoirs is completed.
The first rig, originally scheduled to be available to Petrolifera in late June or early July, 2006, is now scheduled to arrive on location in early August, 2006. The delay resulted from a decision by another oil company which had the drilling rig under contract to conduct additional drilling prior to releasing it for usage by Petrolifera. The second rig, which is one of twenty new rigs being imported into Argentina, is scheduled to be available to Petrolifera on or about October 1, 2006, timed to the target completion date of the company's new production facilities and pipeline. This program appears to be on schedule at this time and Petrolifera expects to have significant additional productive capacity available to tie into the pipeline by October 2006. In the intervening period, temporary storage facilities would be installed at new successful wells and the production trucked to third party treatment plants until the new pipeline becomes operative. This alternative would continue to be available to handle any short term surplus productive capacity after the company's new treatment plant and pipeline is operative, leaving Petrolifera with operational flexibility as the eventual productive capacity of the concession is established through drilling.
Petrolifera is also examining the economics of proceeding with the development of its non-associated Quintuco natural gas reserves, to be produced in conjunction with the associated volumes which are produced with the light gravity crude oil from the Sierras Blancas and Punta Rosada Formations. Larger natural gas reserve and production volumes are expected to attract better pricing from industrial buyers than those which are presently available to Petrolifera, due to the restricted volumes currently being produced from the Puesto Morales block.
This project, along with modifications to the company's overall financial plan and budget, will be evaluated by the company and its Board of Directors at Petrolifera's next regularly scheduled Board meeting. As indicated, preliminary estimates suggest it would take approximately one year from August 2006 for the firm and contingent drilling program of 54 wells to be completed on the concession. During this timeframe the company's upgraded crude oil production facilities and pipeline will be completed and operational and the proposed natural gas development program could be substantially advanced or completed, but would likely require additional continued drilling activity to develop the recognized and potentially considerable non-associated natural gas reserves in the Quintuco Formation.
Petrolifera is also planning to shoot additional 3D seismic for additional coverage over those portions of the Puesto Morales and Rinconada blocks which have not yet been subjected to modern geophysics. This program will also likely occur later this year if suitable geophysical crews can be identified and contracted.
As a result of the identification and restructuring of the company's proposed 2006/2007 drilling program on the Puesto Morales and Rinconada blocks, it is likely Petrolifera's financial plan and capital budget for the full year 2006 will be expanded to accommodate the anticipated activity between now and yearend. Accordingly, revised guidance will be provided to shareholders along with the company's second quarter and first half financial and operating results, scheduled for release on August 8, 2006.
Petrolifera is a Calgary-based oil and natural gas company focused on South America with 100 percent-owned and operated properties in Argentina and Peru.
This press release contains forward-looking statements, including but not
limited to flow rates and production rates. These statements are based on
current expectations that involve a number of risks and uncertainties, which
could cause actual results to differ from those anticipated. These risks
include, but are not limited to, risks associated with the oil and gas
industry (e.g. operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections in relation to production, costs and expenses and
health, safety and environmental risks), the risk of commodity price and
foreign exchange rate fluctuations, the uncertainty associated with
negotiating with foreign governments and risk associated with international
activity. Due to the risks, uncertainties and assumptions inherent in
forward-looking statements, prospective investors in the company's securities
should not place undue reliance on these forward-looking statements.
For further information
Richard A Gusella, Executive Chairman, Petrolifera Petroleum Limited, Phone: (403) 539-8450, Fax: (403) 538-6225, inquiries@petrolifera.ca, www.petrolifera.ca |
