PetroLatina to Spud First Well in New Drilling Program by Late Nov.

PetroLatina has provided the following operational update for its Latin American assets.

At the Company's 2008 Annual General Meeting held on August 5, PetroLatina set itself the ambitious target of spudding the first well in a new drilling campaign within 100 days. That well is now expected to spud by November 25, within days of that target.

Average production net to the Company was 280 barrels of oil per day ("bopd") for the six months ended June 30, 2008 and 183 bopd during the third quarter 2008. The decline was primarily due to the new conditions of the Tisquirama License under the extension, and to production suspensions in the month of September to carry out maintenance works in Santa Lucía and Pressure Build Up Tests in Los Angeles. Estimated gross production for the year remains at approximately 301,700 barrels of oil in line with the initial 2008 production forecasts.

Capital expenditure for the second half of 2008 to date has been $10.7 million, funded from the investment made by Tribeca Oil and Gas Inc. earlier this year and cash flows generated from production. Expenditure has included investments to acquire approximately 203 square kilometres of new 3D seismic over a number of PetroLatina's licence areas in Colombia and preparation for drilling the first well of the drilling campaign.

The budgeted $36 million of capital expenditure for the remainder of this year and 2009, will be directed primarily at completing a twelve well drill programme designed to increase production and book further reserves from the Company's existing assets in Colombia, in the near-term.

La Paloma

The Company continued its preparations for the commencement of drilling Colon-1, the first exploratory well to be drilled on the La Paloma block and is pleased to announce that the required rig is now in Colombia. The Company is currently in the process of mobilizing the rig to the actual well location and expects the rig to be initated by the end of this week, with the well to be spudded by November 25, 2008. Drilling is scheduled to take 25 days at a cost of approximately $6 million.

The Colon-1 well is expected to be drilled vertically to a total depth of approximately 9,072 feet to test the La Paz, Lisama and Umir formations. The Company retains an 80% working interest in the Colon-1 well and is the operator.

Additionally, the Company has completed 54 square kilometers of new 3D seismic data over the block during October 2008. Processing and interpretation of the data is underway and the results are expected to be available at the end of January 2009.

The Company believes that the Colon prospect has possible recoverable reserves of up to 19.8 million barrels of oil.

Santa Lucia

The Company completed 76 square kilometers of new 3D seismic data over the Santa Lucia field in September 2008. Processing and interpretation of this data is underway and the results are expected to be available at the end of January 2009.

Los Angeles

The Company has reprocessed 45 square kilometers of 3D seismic data over the Los Angeles field, yet to be interpreted, and has initated a petrophysic study of all the wells. This study has been initiated with the expectation of identifying additional well locations which are intended to be constructed and drilled during 2009.


The planned acquisition of 47 square kilometers of new 3D seismic over the Midas field has been completed on schedule and has been sent for processing and interpretation. Initial indications are that the data collected is generally of very high quality. It is expected that the results of this data will be released by the end of the year. The Company expects to identify locations for two wells with one of them proposed to be constructed and subsequently drilled or spudded during 2009 at a cost of approximately $4.6 million and a drilling period of 26 to 28 days.


The Company completed interpretation of 26 square kilometers of 3D seismic data over the Gaita field. No drillable prospects were identified, and as a consequence the Company returned the block to ANH, the Colombian National Hydrocarbons Agency in October 2008.

Serafin Gas Development

PetroLatina still awaits the legal clearance required to bring the Serafin gas well into production and hopes to receive this clearance before the end of 2008. Well #1 was worked over in January 2007 and tested at flow rates of 14 million cubic feet of gas per day. Gross reserves are estimated at between 5 and 6 billion cubic feet of gas in place. Commercial gas sales are currently expected to commence in the second quarter of 2009.

Juan Carlos Rodriguez, CEO of PetroLatina, commented, "PetroLatina is poised to commence the first well in its new drill programme which should enable us to significantly increase production and booked reserves.

"To contract and mobilise a rig, complete all the preparations and spud the first well in the program in around 100 days from outset is a commendable achievement and testament to the high quality of our operational team in Colombia. We have now established a firm base from which to accelerate significantly our rate of progress."

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