Petroamerica Oil Corp. (TSXV:PTA), a junior light oil producer focused in Colombia's Llanos Basin, has provided an operations and financial update in a news release out this morning.
PTA has US$64 million in cash as of Sept 30, 2013, and all planned future capital programs through 2014 are expected to be fully funded internally.
Production for the third quarter averaged 5,951 barrels of oil per day ("bopd"), an increase of 18% over Q2 2013. Production for the month of September averaged 6,213 bopd, compared to an August average of 5,997 bopd, representing a 4% increase.
Production from the Las Maracas Field (50% non-operated working interest) is currently being managed with the objective of extending the production plateau, optimising total fluid production and delaying the future decline. Las Maracas is expected to be maintained at approximately 12,000 to 12,500 bopd gross throughout the rest of this year.
The Las Maracas-5 well has been recompleted as a Mirador producer, after producing 332,886 barrels of oil from the Gacheta and Une formations. Tests show excellent properties at the Mirador reservoir (~2,993 bopd).
The Las Maracas-12 development well targeting attic oil in the Gacheta and Une reservoirs, encountered a total net pay thickness of approximately 17 feet. The well produced light oil (29.8(o) API) on test from the Une Formation at an average of 674 bopd and has since been completed as a producer. Additionally, the Las Maracas-14 well has successfully delineated the southern extent of the Las Maracas Field.
On the La Casona field (40% non-operated working interest), the LC2 well has encountered drilling challenges, and has initiated a second sidetrack to test the deeper part of the well. Logs from the unsuccessful attempts are encouraging, indicating up to 46 feet of potential net oil pay in the Mirador Formation, 25 feet in the Gacheta and up to 25 feet of potential net pay in the Une Formation. The company added a caveat that quality of the logs from the Une Formation weren't great.
Construction of the long-term test production facility for the La Casona-1 well, which includes gas compression, is now complete. In the interest of safety, production from this well will not commence before the Tuscany 119 rig, which is drilling the La Casona-2 Sidetrack-2 well from the same surface pad, has moved off location. Bringing LC1 on production represents an important milestone for the company in that it provides field diversification and opportunities for future development.
Shares in Petroamerica were off 5% at press time (7:10am PST), last at .29. Here's the 12 month PTA.V chart
News Release: Petroamerica Provides an Operations and Financial Update for its Activities in Colombia
We own PTA. This is an opinion and not investment advice. Due your own due diligence.