flow rates imminent.10X bagger

Up 10% yesterday. Up 11% already today. People starting to realise real value of pele. Cynic if you read this told ya so.

FROM YESTERDAY AFTER BELL

RNS Number : 1986Z
Petrolatina Energy PLC
16 September 2009

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16 September 2009

PetroLatina Energy Plc
("PetroLatina" or the "Company")


Colon-2 Development Well Update


Colon-2 development well flows oil at a substantial rate and confirms that the
Colon discovery has considerable potential


PetroLatina (AIM: PELE), an independent oil and gas exploration, development and
production company focused on Latin America, announces that the Colon-2 well, on
the La Paloma block, is now on test and is currently flowing oil at a
substantial rate.


Highlight:

* The Colon-2 development well has been placed on a production test and is
producing oil at an average rate of 664 barrels of oil per day ("bopd") on a
restricted choke over the first three days of testing.



Juan Carlos Rodriguez, Chief Executive of PetroLatina, commented:
"The success of PetroLatina's Colon-2 development well is most encouraging in
that it not only provides the Company with increased short term cash flow, but
also sets the stage for a full scale development of the Colon field discovery."




Colon-2 - La Paloma Block


As previously announced, the Colon-2 well, the first appraisal well to be
drilled following the Colon-1 discovery earlier this year, and located about
0.25 miles (450 metres) north of that well, has been successfully drilled to a
total measured depth of 9,300ft, logged, cased and cemented. Colon-2 found the
same oil bearing pay zone as that found to be oil productive in Colon-1, only
12ft structurally lower to that well. This was somewhat higher than the pre
drill estimate and essentially serves to confirm the field maps and provide for
a slightly more optimistic interpretation of oil in place than in the past.
Those field maps, based on the high quality 2008 3D seismic survey, are
therefore considered to be reliable.


The net oil pay thickness in the primary target in Colon-2 was essentially the
same as in Colon-1 confirming that this reservoir has considerable potential. In
addition to the specific Umir pay sand discussed above, the Colon-2 well found
and tested oil from additional pay in a sand 300ft deeper than that which
produced oil in Colon-1. Colon-2 also encountered oil pay, based on log
interpretation, in an Upper Umir sand, also believed to be oil bearing but not
tested in Colon-1.


The main Umir sand pay zone was cored throughout and the core is currently being
analysed to provide accurate porosity and permeability data for reservoir
modeling purposes and the recalculation of reserve volumetrics.


The primary target Umir sand in Colon-2, as well as the deeper sand noted above,
were perforated over the interval 8,774 to 8,812ft (38ft net) and 9,015 to
9,032ft (17ft net) respectively and testing of the well commenced on 8 September
2009. The well was flowed at an average rate of 664 bopd through a restricted
choke between 8 to 16/64th over the initial three days of testing. Essentially
no water was being produced at the end of this period confirming that both of
the two zones under test are oil bearing. The flow rate and flowing pressures
were stable at the end of the test period and the well continues to flow and the
cumulative production to 14 September 2009 was 3,138 barrels of oil.


The oil produced from Colon-2 is being trucked to the Ecopetrol S.A. receiving
station at Ayacucho and sold under the same terms as those which apply to the
Colon-1 oil production.


The Colon-2 well was drilled on the La Paloma Block in which the Company holds
an 80% interest. This block is held under the same attractive terms from the
Agencia Nacional de Hidrocarburos ("ANH") as those outlined previously for the
Midas block whereby the royalty is 8%, no "high price" or "windfall profits"
formula applies until 5 million barrels have been produced and there is no state
back in right. As such, each barrel of oil produced in this block is
approximately three times as valuable to the Company, in terms of net cash flow,
as a barrel produced from one of the Company's traditional fields such as Los
Angeles.


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 qualified 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 | Tel: +57 1627 8435 |
| Juan Carlos Rodriguez, Chief Executive Officer

stupid valuation for PELE with the Colon discovery.
Due out upgraded reserves report should be good.

Nice rise so far today. Could be a pound before the months out.

Before the year's out maybe?