Pacific Rubiales Energy Corp. is pleased to announce that it has received the environmental licences from the Colombian environmental authority, Autoridad Nacional de Licencias Ambientales ("ANLA"), required to advance its planned exploration and development activities in both the CPE-6 and Guama E&P blocks, located in Colombia.
The CPE-6 E&P block covers an area of approximately 593 thousand acres in the southern Llanos Basin and lies along the heavy oil trend approximately 70 kilometers southwest of the Company's operated Rubiales/Quifa SW giant oil field complex. Pacific Rubiales has a 50% working interest and is operator of the block. Talisman (Colombia) Oil and Gas Ltd., a wholly owned subsidiary of Talisman Energy Inc. holds the remaining 50% working interest.
There have been twelve stratigraphic wells drilled on the CPE-6 block by the Company and its partner, plus an additional four wells previously drilled in the area, which confirm the presence of a significant hydrocarbon column in the Hamaca prospect. At year-end 2012, the Company booked certified net 2P reserves of 44.5 MMbbl (57.1 MMbbl gross) associated with the Hamaca prospect and working interest gross best case Prospective Resources of 137.1 MMbbl, associated with the Hamaca prospect and two additional leads in the CPE-6 block.
The Guama block covers an area of approximately 184 thousand acres in the Lower Magdalena Valley Basin, approximately 100 kilometers east of the Company's La Creciente natural gas field in northern Colombia. Pacific Rubiales has a 100% working interest and is operator of the block.
The Company has made a number of significant natural gas discoveries on the block. At year-end 2012, the Company booked certified net 2P reserves of 34.2 MMboe (36.5 MMboe gross) and working interest gross best case Prospective Resources of 97.3 MMboe in the Guama block.
Ronald Pantin, Chief Executive Officer of the Company, commented:
"We are pleased that the Colombian environmental authority has granted this licence which will provide such an important source of revenue for the Company, our partner and for Colombia, in the form of royalties, taxes and spin-off economic activity. We would like to again recognize the efforts that the ANLA has made to improve and streamline the licensing process for oil producers in Colombia and we look forward to working with them in the future.
"Receiving the environmental licence for the CPE-6 block is important to the Company and our partner as it will allow us to continue our exploration activities, production test wells, and advance the block to first production, expected next year. This block represents the first major step out for us from the Rubiales/Quifa SW field area and illustrates the repeatable and scalable nature of the Company's heavy oil strategy in Colombia, while also supporting the Company's plans to significantly increase its production over the next four years.
"It is important to understand that the CPE-6 licence is a 'global environmental licence' which will allow for exploration and future development on the block. For the remainder of 2013 the Company plans to drill one exploration well and obtain production flow tests from existing wells. Following this into 2014, the Company plans to drill up to 19 additional wells, including two exploration wells and 17 appraisal and development wells. The Company and our partner will begin activities as soon as logistical, partner and permit approvals allow.
"The Guama environmental licence allows us to advance this block into its development phase. It provides the Company with authorization to drill up to 20 development wells and the construction of production facilities. We have already made a number of important exploration discoveries on the block and expect it will provide additional natural gas feedstock for our strategic LNG export project, which is advancing to commercial start-up at the end of next year."
