flow rates imminent.10X bagger

RNS Number : 5134N
Petrolatina Energy PLC
18 February 2009



18 February 2009




PetroLatina Energy Plc

('PetroLatina' or the 'Company')




Colon-1 Exploration Well Delivers Successful Preliminary Test Results




PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company focused on Latin America, is pleased to announce successful preliminary test results for its Colon-1 exploratory well on the La Paloma block in the Middle Magdalena valley, Colombia. The Company retains an 80 per cent. working interest in the Colon-1 well and is the operator.




The Colon-1 well was drilled to a final total measured depth of 9,125ft. Logging results and oil shows encountered whilst drilling indicated that the Upper Cretaceous Umir Formation contained a potentially oil bearing sand from 8,755ft to 8,795ft. This sand has been designated the 'F Sand' and initial flow testing of this zone has now been undertaken.




The Umir F Sand section from 8,764ft to 8,795ft was perforated and the well produced oil at significant rates on natural flow. Flows were recorded through various choke sizes and average flow rates and tubing head pressures achieved over time can be summarised as follows:




CHOKE SIZE

(64th. Inch)
FLOW PERIOD HOURS
BARRELS PER DAY
TUBING HEAD PRESSURE (PSI)
GAS/OIL RATIO SCF/STB

6
8
806
438
19.7

8
6
810
240
19.1

10
6.5
857
198
15.2

12
5
783
205
16.7

14
6.5
1,127
162
14.1

10-36
99
1,197
114
13.1





TOTAL CRUDE OIL PRODUCED ON TEST: 5,899 Barrels





Laboratory analysis has determined that the oil is 22 degrees API at 60 degrees Fahrenheit.




Testing operations are continuing and upon completion of the current flow period the well will be put on an extended shut in period to allow accurate downhole reservoir pressure measurements to be completed. Oil produced at Colon-1 will initially be handled at the PetroLatina operated Santa Lucia field located 12km to the northeast of the discovery which currently has adequate unused production capacity.







The rig has now been moved to the next PetroLatina drilling location, a development well in the Company-operated Los Angeles field which is expected to spud within the next few days.


Juan Carlos Rodriguez, CEO of PetroLatina, commented:




'We are delighted with the success of the Colon-1 well, especially as it was the first exploratory well to be drilled on the La Paloma field. The Umir F Sand is of better than expected reservoir quality and the oil quality is also higher than anticipated. The drilling success will in due course significantly increase the Company's existing production volumes, which averaged approximately 261 bopd in 2008, and allows for further development of the La Paloma field where we have identified several additional drilling locations.




'In due course, we expect to be in a position to provide details of the final test results and a preliminary indication of the potential significance of this discovery.'







Mr Menno Wiebe, a Non-executive director of the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a competent person, as required under the AIM rules. Mr Wiebe is a Petroleum Geologist and has been a Member of the American Association of Petroleum Geologists for more than 25 years and a Member of the Geological Society for more than 5 years.







Enquiries:




PetroLatina Energy Plc

Juan Carlos Rodriguez, Chief Executive Officer



Tel: +57 1627 8435

Pawan Sharma, Executive Vice President - Corporate Affairs
Tel: +44 (0)207 956 2821






Strand Partners Limited



Simon Raggett / Matthew Chandler
Tel: +44 (0)20 7409 3494






Financial Dynamics



Ben Brewerton / Susan Quigley
Tel: +44 (0)20 7831 3113





Additional Information on PetroLatina Energy Plc:

PetroLatina Energy Plc (AIM: PELE), formerly known as Taghmen Energy Plc, was founded in 2004. The Company is presently focused on Colombia after the sale of its assets in Guatemala in which it retains a 20% interest in the first three wells and a 20% working interest in future wells. In Colombia, the Company currently holds 40% and 20% interests in the Los Angeles and Santa Luc fields on the Tisquirama licence respectively, and a 100% interest in the Do Mar field. In November 2007 the Company secured the extension of the Tisquirama licence for the economic life of the fields. In April 2006 the Group acquired an interest in two exploration blocks with an 85% interest in Midas and an 80% interest in La Paloma. PetroLatina also owns the R Zulia-Ayacucho pipeline in the prolific Catatumbo basin which transports crude oil. Present exploration/exploitation activities in this area should increase the volume of crude oil transported resulting in an increased cash flow. Further information is available on the Company's website (www.petrolatinaenergy.com).








This information is provided by RNS
The company news service from the London Stock Exchange

Much better than i expected with more to come. 50p here we come !!!!!

nice one. guys neuropharm/NPH massive drop today way overdone and full trial results still too come.12.7 mill cash ie 45p thats why it opened at 45p.watch it slowly climb.too cash 45p

Why the fall in price?

PELE has a lousy management...that's what the matters.

MoneyAM
PetroLatina Energy's share price jumped 23.8% to 26p by mid -afternoon following the announcement that its Colon-1 well in Columbia has signficant potential in terms of the expected oil production rate.

The well is expected to produce above 1200 bopd which would result in a significant uplift to the Company's existing production.

Juan Carlos Rodriguez, CEO of PetroLatina, comments: "We are pleased to note that the results of the Colon-1 pressure build up test appear to confirm our earlier positive view regarding the potential impact of this well on PetroLatina's near term production rate.

"This drilling success will not only greatly supplement the Company's production volumes but will also allow for development of the La Paloma field which has several additional promising drilling locations. It will also result in an increase in the Company's reserves in due course.

"The proximity of this well to our existing and underutilised production facilities will allow us to monetize this discovery in the short term."
cyril

Newsflow increasingly more positive, sp seeing levels not reached for many many months.
2517

Is this well off peeps radar or what? Gr8t news from a well undervalued company imo. And crap volumes `HELLO` Get in and get some!! RAMP RAMP RAMP dyor 8-)

I feel that at 234000 vol, it's not that exciting, am I wrong?

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ZZZZZZZZZzzzzzzzzzzzz..........

Wake up martinl2 annual results out and the market like them.
2517

Nice :)

Been a strong performer since annual results, and off to a terrific start for the week.
2517

Good drilling news, nice increase in production & sp.
2517

Very nice update and with so much to come too.

Surprised this has only risen 18% so far from the dip but can't complain.

Can't believe this is still under 20m cap.

I can see 60p being challenged within weeks and 1 not that far off.

AGM presentations on website:

http://www.petrolatinaenergy.com/documents/2009_AGM_Presentation.pdf
http://www.petrolatinaenergy.com/documents/2009_AGM_Technical_Review.pdf

Very interesting reading.

PELE knocking a few in at last, another 2 successful wells making a total of 6 with possibility of more to come. Very promising.
2517

Excellent result and so much upside,plrased with myself as i boight into these last friday.
cyril

Gr8t news, like you say cyril loads of upside. Lucky enough to get in earlier in the year at 20p.