BOGOTA, Colombia, Jan. 18, 2011 /PRNewswire/ -- La Cortez Energy, Inc. ("La Cortez") (BULLETIN BOARD: LCTZ) is pleased to provide the following operational update.
Maranta Block Mirto Field - Mirto-2 N sand Production Test Results
A workover job was carried out on the Mirto-2 well to conduct cased-hole logs (CCL and Gamma Ray) on the Villeta U sand interval as well as to perforate and test the Villeta N sand interval. Logs were taken on December 29th on the U sand interval, but the quality of the logs was not sufficiently determinative to justify additional actions on the U sand at this time. Consequently, it was decided to temporarily isolate the Villeta U sand and proceed with the perforation of the Villeta N sand. Perforations were conducted on January 2nd between 10,586.5 - 10,597 feet depth (10.5' feet interval). The well was put on a production test on January 9th with the following results:
Oil production in barrels of oil per day Basic sediment and water Date (BOPD) Gross (BS&W %) 9-Jan-11 336 46.0 10-Jan-11 481 24.5 11-Jan-11 527 17.6 12-Jan-11 686 4.7 --------- --- --- 13-Jan-11 688 1.3 --------- --- --- Crude oil quality: 15.4 API degrees
The Mirto-1 well was recently shut in due to mechanical problems. A review of the conditions of this well is currently being performed in order to determine potential corrective actions regarding both the Villeta U and Villeta N sands production. These corrective actions will also depend on performance of the results on the Mirto-2 Villeta N sand production test.
As previously reported, during production testing on the Mirto-1, the Villeta N sand interval produced an average oil rate of 247 BOPD of 15 degree API oil under artificial lift over a 48 hour period (average water cut of 64%), and the Villeta U sand produced 32 degree API oil at an average rate of 731 BOPD (average water cut of 26%) during the same production test. Prior to being shut in for mechanical problems, the Mirto-1 production had declined to less than 60 BOPD exclusively from the U sand with average water cut to having increased to ninety percent.
2011 Exploration Plan Update Maranta Block
As previously indicated, the additional activity planned for this block, including drilling of the Agapanto-1 exploration well and other potential exploration activities, has been suspended until the additional information on the Mirto-2 well is obtained and evaluated.
Both Emerald Energy PLC (operator of the block) and La Cortez have complied with the exploration obligations on this block as per the contract signed with the Agencia Nacional de Hidrocarburos (the "ANH"), Colombia's hydrocarbon regulatory agency. Under the contract terms and conditions and after completion of phase 3 exploration, with the drilling of Mirto-2 well last year, we and Emerald are required to relinquish 50% of the area of the block, as selected by us and Emerald, and we have the option to continue exploration activities in the remaining 50% of the area by committing to additional exploration activity with the ANH, such as new seismic acquisition or drilling a new exploration well. This is a normal procedure in contracts signed with the ANH. The area around the Mirto field will be retained to continue with the evaluation process. Both Emerald and La Cortez are currently evaluating the exploration potential of the block to determine our course of action and the alternatives regarding the area to be relinquished.
Pursuant to the terms of its joint venture agreement with Emerald, upon satisfaction of the work obligations negotiated between the parties, La Cortez has the right to seek assignment of a 20% working interest in the Maranta Block. Emerald has filed a request with the ANH for the assignment of the 20% working interest in the Maranta block to La Cortez and is obligated to assist La Cortez in obtaining assignment of its working interest from the ANH through reasonable means.
Putumayo-4 Block
During 2010, Petroleos del Norte S.A. (PetroNorte), as operator of the block, and La Cortez reprocessed approximately 1000 km of 2-D seismic covering the Putumayo-4 Block. The reprocessed seismic identified a total of seven leads located in both the northern and southern portions of the block. During 2011 we plan two seismic acquisition campaigns. The first seismic we expect to shoot in early 2011 upon completion of the consultation process with local communities. This process was suspended during December and January and will be reinitiated in February, when the Department of Interior's community consultant returns for the New Year. This initial seismic phase will involve acquisition of 105 Km of 2-D seismic.
Results from the seismic acquisition will permit us to finalize the drill location for the first exploration well. Subject to completion of permitting and civil works at the drill-site, we and PetroNorte anticipate spudding the first Putumayo-4 exploration well by the end of 2011. We and PetroNorte remain optimistic on the potential of this block, and we have recently been approached by several parties with a potential interest in partnering with us on future exploration and development at Putumayo-4.
PetroNorte has filed a request with the ANH for the assignment of the 50% working interest in the Putumayo-4 block to La Cortez and is obligated to assist La Cortez in obtaining assignment of its working interest from the ANH through reasonable means.
Rio de Oro - Puerto Barco Fields
Avante Colombia Ltd. (a subsidiary of La Cortez Energy Inc), as operator of the Rio de Oro and Puerto Barco Fields, has completed the technical evaluation of these fields, which is encouraging as to future potential. Avante Colombia has also completed the program to re-initiate the Puerto Barco field in conjunction with our joint venture partner Vetra Exploracion y Produccion S.A. We have met with representatives from the local communities and with several local and regional government officials.
Avante Colombia has performed a detailed evaluation of the current road conditions, which will allow the company to determine cost and timing for the necessary road improvements. Our technical evaluation has identified several attractive workover opportunities, and it is anticipated that this will be the focus of our initial activities to re-establish production in the Puerto Barco. Operating conditions in the area remain challenging due to weather and infrastructure constraints, so it is difficult to estimate the timing for initiation of future activity. We are also actively engaged with Ecopetrol regarding opportunities in to amend the terms of our exploration rights in the area, though the final outcome of such discussions remains unknown at this point. We remain enthusiastic regarding future options for our activity in this area, where some of the long-standing hydrocarbon production in Colombia is located.
Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are very encouraged by the initial production test results at Mirto-2 and are optimistic the information obtained from the workover will allow us to determine the best course of action to realize the full potential of the Villeta U and N sand intervals in the Mirto field. We plan to continue with the production test of the N sand in the Mirto 2 well. Also we are considering several options to re-initiate production in the Mirto-1 well which will be announced at a later stage. During 2011 we will continue to aggressively work on the Purtumayo-4 Block and the Puerto Barco and Rio de Oro fields to prove up the potential of these areas, while we continue to evaluate other opportunities in a variety of basins in Colombia."
"The company is fortunate to have cash reserves on hand sufficient to execute on the milestones outlined above for 2011 at its development and exploration projects at Maranta, Putumayo-4 and in the Catatumbo; and we remain committed to our strategy of creating value for shareholders through the drill bit."
About La Cortez Energy, Inc.
La Cortez Energy, Inc. is an early stage oil and gas exploration and production company currently pursuing a business strategy in the energy sector in South America, with an initial focus on identifying oil and gas exploration and production opportunities in Colombia. To that end, the Company has established a branch, La Cortez Energy Colombia, Inc., with offices in Bogota, Colombia, and has signed a Joint Operating Agreement for a 50% working interest in the Putumayo 4 block and a Joint Venture agreement for a 20% working interest in the Maranta block and has acquired the interests of Avante Colombia in the Rio de Oro and the Puerto Barco fields, all in Colombia.
For more information, please contact the Company's Investor Relations department at 941 870 5433 or by email info@lacortezenergy.com.
http://www.lacortezenergy.com/ Forward-Looking Statements
Certain statements in this news release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. There can be no assurance that the Putumayo 4, Maranta and Rio de Oro and Puerto Barco projects will be successfully developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company, including, but not limited to, the Company's ability to identify corporate acquisition and/or joint venture opportunities in the energy sector in Colombia, Peru and Brazil and, more generally, in Latin America, and to establish the technical and managerial infrastructure, and to raise the required capital, to take advantage of, and successfully participate in such opportunities, future economic conditions, political stability and energy prices. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
La Cortez Energy, Inc.
CONTACT: Company's Investor Relations department, +1-941-870-5433,
info@lacortezenergy.com
Web Site: http://www.lacortezenergy.com/
