[SOUTH AMERICA] Petro Vista Energy Increases its working interest in the Morichito Block, Colombia
Petro Vista Energy Corp., an independent oil and gas exploration company, provides an update on its Morichito property in Colombia.
The company has successfully increased its quota capital of Petropuli Ltda. ("Petropuli") from 90% to 99.4% resulting in the Company increasing its working interest in the Morichito block to 51.91% (from 47.42%) providing it is an important contributing interest. The Morichito block is located in the East Plains, Llanos Basin, Colombia and comprises 57,251 gross acres (29,719 acres net). This is 4.49% increase in the Company's working interest in the Block. Petro Vista is the Operator of this Block.
Extensive geotechnical (3D seismic and well log evaluations) and engineering analysis has been completed on several exploration prospects in the Morichito Block. The most promising is the Morichito #1N prospect, which is along a productive NE SW trend in the area where internal estimates suggest field size reserves range from 6-10MMBO based on 3D data.
The Morichito #1N location is anticipated to be drilled in Q4 2008. Following Morichito #1N, the Company will conduct a completion on the existing Morchito #2 well in which oil has previously been confirmed through log analysis and sample recovery. The completion of Morichito #2 is scheduled for Q1 2009.
With this increase in working interest and based on nearby analog results, the Company anticipates that based on internal estimates, net potential production to total 995 bopd (approximately 305 bopd from the completion and approximately 690 bopd from the exploration well). If these resources are discovered, there is no certainty that it will be commercially viable to product any portion of their resources.
In preparation for field work at Morichito, Petro Vista Energy has initiated reconnaissance operations; built and repaired roads (including bridges and access roads); acquired land rights; and secured environmental permits. In support of these operations, Petro Vista has recently established a South America regional office, located in Bogota, Colombia, led by Petro Vista's Vice President - South America, Steven J. Benedetti. Petro Vista has also added several experienced local technical and management staff in Colombia.