CALGARY, ALBERTA -- (Marketwired) -- 09/09/13 -- Platino Energy Corp. ("Platino" or the "Company") (TSX VENTURE: PZE) is pleased to provide an update on the ongoing testing of the Coati-1 well, an operations update regarding the Company's exploration properties and a year-end 2013 capital outlook.
Coati Block - 100% Working Interest(1)
The Coati-1 well was cased to a total planned depth of 10,800 feet in late July 2013 after 42 days of drilling. Testing activity with the rig has been extensive, including preliminary tests of the Caballos and Villeta U Sandstones and the Caliza A Limestone. The Company is currently completing the Coati-1 well for further production testing using sliding sleeves and a jet pump to test production independently from the upper and lower Caballos Sandstones, the Villeta U Sandstone and the Caliza A Limestone.
Production testing undertaken in the coming weeks will determine whether commercial volumes of oil can be produced from these formations. The drilling rig has been released and testing will continue via wireline. A jet pump will be installed to perform an extended test on the Caliza A Limestone followed by extended testing of the two Caballos Sandstones. Platino will release test results upon completion of the extended testing program.
Depending on results from the extended testing of Coati-1, Platino and its partner Canacol Energy Ltd. ("Canacol") will define an appraisal program for the Coati structure. The Nasua structure, north of Coati-1, was upgraded to a prospect based on the Coati-1 well results. The licensing process is underway to drill and potentially shoot a 3D seismic survey over the Nasua structure in 2014.
Platino currently holds a 100% working interest in the Coati block, with its interest reducing to 80% once Canacol earns a 20% interest pursuant to agreed farm-in terms.
(1) Platino's interest in the Coati block is a result of the spin-off of certain exploration assets formerly belonging to C&C Energia Ltd. to Platino. Platino is pursuing regulatory approval from the ANH (as defined below) to be recognized as operator of record of the Coati block.
Putumayo-8 Block - 50% Working Interest
Platino and its operating partner, Vetra Exploracion y Produccion S.A.S. ("Vetra"), are continuing work for the first exploration well and design of the seismic program for the remaining 112 km2 of 3D seismic commitment as required under the first phase of the Putumayo-8 exploration and production contract. Due to delays in environmental licensing, the Company expects the drilling of the first exploration well to be delayed until the latter half of 2014. The expiration of the first phase is May 2014, necessitating the operator to request an extension of the current phase from the Agencia Nacional de Hidrocarburos ("ANH"), which the Company does not anticipate being problematic.
Vetra announced on July 30, 2013 that it will be jointly acquired by Capital International Private Equity Fund VI, L.P. and an affiliate of Acon Investments LLC.
Andaquies Block - 100% Working Interest
The previously announced transfer of Canacol's 36% working interest in the Andaquies block to Platino has been completed, and Platino's working interest is now 100%.