Petrominerales Tests Oil From 1st Zone in Corcel-1 Exploration Well

Bogota-based Petrominerales (TSX:PMG), an 80.7%-owned subsidiary of Calgary-based Petrobank Energy and Resources (TSX:PBG), announced its Corcel-1 exploration well has tested at initial rates of 970-1,200b/d of 31 degree API oil.

The oil flowed from the Guadalupe formation with no water shows. The formation could produce up to 2,500b/d with the installation of an electrical submersible pump, the company said in a statement.

The company will now test the upper Mirador intervals of the same well using the drilling rig and release results over the next three weeks.

The company plans to spud its second well on the Corcel block in August.

The Corcel block is situated in a drier region of the Llanos basin and the company has an all-weather road to accommodate year round production from the well.

Petrominerales has identified five more locations to test on the 32,300ha block.

The company will also begin seismic testing on their adjoining Guatiquia block, according to the statement.

Corcel-1 was the fourth well of the company's five well program in 2007 in the Llanos and Putumayo basins.

Petrominerales' drilling rig is working on the company's Orito block, but will soon be moved the Las Aguilas block to spud the Conga-1 exploration well, according to the statement.

Petrominerales holds more than 600,000ha of land in Colombia and plans to drill eight further exploration wells in 2008.

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