PetroMagdalena Updates Exploration Activities in Copa Field

PetroMagdalena Energy Corp. announced Monday an update on its ongoing exploration program.

"We are pleased to announce the continuation of our successful exploratory and development drilling program. The Copa 4 development well at Cubiro has extended the mapped reservoir area with higher formation tops than predicted and with positive tests of the zones identified petrophysically, this could lead to a measurable increase in oil reserves for the Copa Field," said Chief Executive Officer Luciano Biondi.

Copa 4 Development Well - Copa Field, Cubiro Block, Llanos Basin

The Copa 4 development well was spudded on March 31, 2012 and reached TD on April 12 at 6,240 feet MD in the top of the Gachetá Formation. Well logs were run on April 13th. The petrophysical evaluation of the C7, C5 and C3 sandstones, all productive in the Copa field, estimates the well logs to be 15 to 20 feet higher than predicted in the mapping done based on the seismic interpretation. Petrophysics indicate potential hydrocarbon pays of 7 feet in the C7, 17 feet in C5, 13 feet in C5, and 11 feet in C3.

As the Copa 4 development well was drilled to the northwest, it was expected to intersect the predicted oil water contact considerably down dip from the producing Copa-1 well. With positive testing of the hydrocarbon potential in Copa-4, the oil reservoir in the Copa field will be extended to the west with an expected upward revision of the reserves for all three producing reservoir units in the Copa field.

Alondra-1ST Exploration Well - Cubiro Block, Llanos Basin

The Alondra-1ST exploration well reached TD at 6291 feet MD on April 12, 2012 in the Carbonera C8 Formation and was plugged and abandoned based on LWD logs. The well is in Polygon B of the Cubiro Block, where PetroMagdalena has a 70 percent working interest.

Cantaclaro - 1X Exploration Well - Carbonera Block, Catatumbo Basin

At the Cantaclaro-1X exploration well, intermediate 9 5/8 inch casing was set at the top of the La Luna Formation on April 9, 2012. Simultaneous underbalanced drilling and testing of the target La Luna Formation started on April 15, 2012. The plan is to drill 910 feet of a highly deviated reservoir section through the fractured La Luna Formation underbalanced and obtain test rates as the drilling progresses. Final results are expected by the end of April 2012.