Pacific Stratus Reports Llanos Basin Success

Pacific Stratus Energy Ltd. has completed the production test of the Mauritia Norte-1 well (MN-1), located in the Moriche Block in the Llanos Basin of Colombia. The well produced 1,116 barrels of 36.5 degree API gravity oil per day by natural flow.

The production tests consisted of drill stem tests executed at the Mirador, Gacheta and Upper and Lower Ubaque Formations at depths of 8,965-8,967 feet, 9,637-9,642 feet, 9,775-9,787 feet and 9,792-9,797 feet.

Production tests performed at the Mirador Formation, which were carried out using different choke sizes, achieved natural flow of 36.8 API gravity oil with a 20.1% bottoms, sediment & water (BSW) content through a 24/64 inch choke. The pressure recorded at the reservoir level at a depth of 8,965-8,967 feet was 3,755 psi. The company has determined that MN-1 will be completed to produce from this interval.

Variable production of 13.7 degree API gravity oil was obtained from the Upper Ubaque Formation, resulting in a calculated open flow potential of 202 barrels per day with a BSW content of 27.5%. This formation will be tested again with future development wells to determine whether it can yield commercial production levels. Production tests were also completed on the Lower Ubaque and Gacheta Formations, but neither proved as attractive as the Mirador Formation due to lower production rates with higher water cuts.

Pacific Stratus holds an 80% working interest in and is the operator of the Moriche block. By drilling the MN-1 well, the company has fulfilled the second phase of its contractual commitment with the Colombian Hydrocarbons Agency, the grantor of the Moriche association contract. The company is planning to drill another development well in this prospect in mid-2007 and will begin long-term production tests at MN-1 as soon as production facilities are completed.

Pacific Stratus Energy is a Canadian-based oil and gas company that initiated operations in 2004. The company is focused on identifying attractive opportunities primarily within the upstream Sub Andean basins. Pacific Stratus has a current net production of 2,200 barrels of oil per day, with working interests in the Caguan, Dindal, Rio Seco, Puli B, Doima (currently under dispute), La Creciente, Moriche and Guama blocks in Colombia. The company has offices in Toronto, Caracas and Bogota.