End of December Production 776 boed
VANCOUVER, Jan. 3, 2018 /CNW/ - PentaNova Energy Corp. (the "Company") (TSXV: PNO) continues to grow its production base in Argentina by applying proven technologies to increase daily production. The Company's working interest production as of the end of December was 776 boed.
Operations in the Llancanelo block are continuing, with the workover completed in November 2017 on well LLN2012, where a downhole heater was installed. Production subsequently rose from 35 bopd on average to a current flow 125 bopd. This test has shown that well productivity can be increased substantially by improving the inflow into the well, and the data is being used to help optimize the well designs for the 2018 development drilling campaign in Llancanelo.
"PentaNova believes production can be dramatically improved through the implementation of proven technologies to our existing and planned wells," said Serafino Iacono, Chairman of PentaNova. "The more than three-fold production increase of this single well from 35 bopd to 125 bopd strongly suggests to me that our development model can be scaled across the massive heavy oil resource in the Llancanelo block. Technology will be the key to unlocking the potential of the field and taking it from it's relatively small production today of around 1300 bod to being a world class producer."
"We are applying this strategy to raise production from all of our Argentine assets, primarily coming from the improvements in the Llancanelo block and through the addition of Sur Rio Deseado. As a result, PentaNova continues to develop cashflow as it advances its strategy to maximize development of producing wells, develop new wells and acquire new assets, to build the company into one of Latin America's newest energy producers."
PentaNova holds a 39% working interest in the Llancanelo block and is completing the administrative registry with the Province of Mendoza for the transfer of an additional 11% working interest previously announced on November 22, 2017.
PentaNova has also finalized the acquisition of the Sur Rio Deseado Este Production asset (SRDE-Producion) and the Sur Rio Deseado Exploration (SRDE-Exploracion), obtained as part of the Patagonia Oil Corp acquisition on August 9, 2017, with ROCH S.A., the selling party, transferring 54.14% and 7.92% of the Sur Rio Deseado Este Production and Exploration assets respectively, to PentaNova's wholly owned subsidiary Alianza Petrolera S.A. ("Alianza"). The SRDE Production asset has been averaging 60 bopd of 12-18 API heavy oil production for the last three months, and PentaNova, through Alianza, will act as the operator on the Production block. This provides PentaNova with a foothold in the heavy oil southern flank of the San Jorge Basin.
Operations continue in Colombia on the Maria Conchita block. In order to avoid extra mobilization costs during the holiday period, the Company elected to delay drilling operations until the first quarter. These delays will not materially impact the overall project timeline. Work is progressing on course for the other technical and administrative requirements necessary to produce gas from the block.
The Company plans to finalize its capital budget for activities in both Argentina and Colombia with partners prior to making a final decision regarding the credit facility proposal received late in 2017.
About PentaNova Energy Corp.
PentaNova Energy Corp. is a publicly traded E&P company focused on proven oil & gas plays in Latin America. The Company holds a large diversified portfolio of producing, development and unexploited assets in Argentina and Colombia, leveraging its technical expertise and proven track record of building companies and creating value.
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about the completion of the operations described herein, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms of such transaction.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company's inability to perform the proposed operations.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete the planned operations and activities. The Company has also assumed that no significant events will occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Please visit our website at www.pentanovaenergy.com
SOURCE PentaNova Energy Corp.
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