PetroMagdalena Brings Petirrojo-2 on Production

PetroMagdalena Energy Inc. is pleased to announce that the Petirrojo-2 development well has been on production for the last 24 hours with an average rate of 1,108 bopd natural flow with a 21.3% water cut of 40.4 degrees API light oil. This represents approximately 775 bopd gross working interest share for the Company.

Luciano Biondi , Chief Executive Officer of PetroMagdalena stated, "We are very pleased to announce the Petirrojo-2 development well is now on production, and that completion operations on Petirrojo-3 have started. This development has now increased our daily production average to approximately 4,400 boepd. The last two Llanos basin exploration wells for this year will be drilled before year end, and is part of our plan to increase light oil production and reserves."

The drilling rig used to drill and complete Petirrojo-2 is now being mobilized to drill the Azor-1 exploration well on the adjacent Arrendajo block where the Company now has a 67.5% beneficial working interest, subject to ANH approval. A workover rig is also currently being mobilized to Petirrojo-3, which was drilled and cased in November 2011 , to complete the well and put it on production. The Petirrojo-3 well is expected to be on production in approximately 12 days.

The Company is also pleased to announce that on December 11, 2011 , the Yopo-1 exploration well was spudded on the Cubiro Block, four kilometers north of the Petirrojo production facility. Yopo-1 will test an exploration prospect located between the Petirrojo field and the Palmarito located six kilometers north of the Yopo-1 well. It is anticipated the well will reach total depth (TD) in approximately 12 days.