CALGARY, May 13, 2014 /CNW/ - PetroNova Inc.
("PetroNova" or the "Company") (TSX-V: PNA), a
company engaged in the exploration and development of oil and
natural gas resources in Colombia,
today announced that it will abandon the Canelo Sur-2 exploratory
well (the "Well") after obtaining inconclusive results from
the testing of the Lower "U" Sand of the Villeta Formation. The
Well is located in the PUT-2 Block (the "Block") in
Colombia's Caguan-Putumayo
Basin.
Completion and testing operations at the Well
have been ongoing since March 2014
(for details, please refer to the Company's press
release dated March 14, 2014). A 7-inch liner was
run and cemented in the open-hole section of the Well. Based on the
interpreted potential oil pay indicated by oil shows during
drilling and open hole and cased hole well log information, a 44
foot interval in the Villeta Lower 'U' sand was perforated and
tested. Production testing with a hydraulic pump yielded
primarily formation water with intermittent volumes of light oil
(up to 3% of the fluid rate) over approximately 48 hours of
evaluation. Based on the testing results, the Well will be
abandoned and the rig will be released in the near future.
PetroNova considers the results to be
inconclusive with respect to the potential for future oil
production from this Villeta play trend. Well stability problems
were exacerbated by extended delays during drilling which have lead
to a number of uncertainties, including:
- the reliability of open-hole and cased log interpretation;
- the effectiveness of zonal isolation (cement distribution and
bonding to casing and formation);
- possible formation damage due to substantial invasion of
drilling fluid; and
- potentially misleading flow results due to zonal crossflow
during the period of suspended operations.
The Well was the first well drilled in the Block
and, in conjunction with the seismic data previously acquired, the
Company has fulfilled contractual commitments for Phase I of the
exploration and production contract with the Agencia Nacional de
Hidrocarburos of Colombia (the
"ANH"). PetroNova and its partner, Suroco Energy Inc.
("Suroco"), are undertaking a full evaluation of the data
collected during the drilling of the Well. The new information will
be integrated in their ongoing evaluation of the multiple
exploration drilling leads remaining in the Block, which include
seismic anomalies observed at the Villeta 'N' sand level, as well
as other mapped structural closures along the Canelo-Nogal and
Cedrillo trends.
PetroNova currently holds a 75% working interest
in the Block, and Suroco holds a 25% economic interest.
Application has been made to the ANH for its approval of the
conversion of Suroco's 25% economic interest to a full 25%
undivided working interest in the Block.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Caution Regarding Forward-Looking Statements and
Information:
Certain statements and information contained in
this press release constitute forward-looking statements and
information (collectively "forward-looking statements")
within the meaning of applicable securities laws. These statements
relate to future events or the Company's future performance. All
statements other than statements of historical fact are
forward-looking statements. The use of any of the words
"anticipate", "intend", "plan", "continue", "estimate", "budget",
"targeting", "project", "expect", "may", "will", "might", "should",
"could", "believe", "predict" and "potential" and similar
expressions are intended to identify forward-looking statements.
Such statements represent the Company's internal projections,
estimates, expectations, beliefs, plans, objectives, assumptions,
intentions or statements about future events or performance. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. Management believes the expectations reflected in these
forward-looking statements are reasonable but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this press release should
not be unduly relied upon.
In particular, this press release contains
forward-looking statements pertaining to the Company's future
exploration and development activities and the timing thereof,
including the abandonment of the well and the release of the rig.
With respect to forward-looking statements contained in this press
release, assumptions have been made regarding, among other things,
general economic, market and business conditions in Colombia and globally; future crude oil and
natural gas prices; the continued availability of capital,
undeveloped lands and skilled personnel; the ability to obtain
equipment in a timely manner to carry out exploration and
development activities; the regulatory framework governing
royalties, taxes and environmental matters in Colombia and any other jurisdictions in which
the Company may conduct its business in the future; the ability of
the Company to obtain the necessary approvals, permits and licences
to conduct its operations; the applicability of technologies for
recovery and production of the Company's oil and natural gas
resources and reserves; the recoverability of the Company's oil and
gas resources and reserves; future capital and exploration
expenditures to be made by the Company; future sources of funding
for the Company's exploration program; the geography of the areas
in which the Company is exploring; and adequate weather and
environmental conditions.
Actual results could differ materially from
those anticipated in these forward-looking statements as a result
of certain risk factors, including, but not limited to: general
economic, market and business conditions; risks related to the
exploration, development and production of oil and natural gas;
risks inherent in the Company's international operations, including
security and legal risks in Colombia; risks related to the timing of
completion of the Company's projects; competition for, among other
things, capital, the acquisition of resources and skilled
personnel; actions by governmental authorities, including changes
in government regulation and taxation; the failure of the Company
to obtain the necessary approvals, permits and licences to conduct
its operations; environmental risks and hazards; the availability
of capital on acceptable terms; the failure of the Company or the
holder of certain licenses or leases to meet specific requirements
of such licenses or leases; adverse claims made in respect of the
Company's properties or assets; failure to engage or retain key
personnel; geological, technical, drilling and processing problems,
including the availability of equipment and access to properties;
failure by counterparties to make payments or perform their
operational or other obligations to the Company in compliance with
the terms of contractual arrangements between the Company and such
counterparties; and the other factors discussed under the heading
"Risk Factors" in the Annual Information Form of the Company
for the year ended December 31, 2013
and the Company's other continuous disclosure documents filed from
time to time with applicable securities regulatory authorities in
Canada and which may be accessed
on PetroNova's SEDAR profile at www.sedar.com.
Readers are cautioned that the foregoing
lists of factors are not exhaustive. The forward-looking statements
included in this press release are expressly qualified by this
cautionary statement and are made as of the date of this press
release. The Company does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or results or otherwise,
except as required by applicable securities laws.
SOURCE PetroNova Inc.