Petro Andina Contracts for Third Drilling Rig, Exceeds 3,000 Barrels of Oil per Dayadmin
Petro Andina Resources Inc. announced today that it has deployed a third drilling rig in the Company’s continuous exploration, appraisal and development program on the CNQ-7/A Block located in Argentina’s Neuquã©n Basin. The Walker Neer – Apache 250-40 rig, capable of drilling to 2,000 meters has been contracted from Venver S.A., an Argentine based contractor, for a period of two years, with an open option to extend the contract. This third rig has now drilled and cased two wells since commencing operations in early January. The Company’s C$85 million capital program for 2007 contemplates drilling 157 gross (80 net) wells and Petro Andina is therefore currently in negotiations to add further drilling capacity in the third and fourth quarters. The Company has also contracted and deployed three workover rigs to conduct well completions and testing, and to maintain its 49 producing wells. In addition to the drilling program, the 2007 capital budget includes C$24 million for the construction of facilities and field infrastructure, C$8 million for new business development, C$2 million for seismic acquisition and C$1 million for a thermal recovery pilot project.
Petro Andina also announced that its net daily oil production during the last two weeks of December 2006 averaged over 3,100 barrels of oil per day, exceeding its target exit rate of 3,000 barrels per day. In the fourth quarter of 2006, Petro Andina drilled 16 additional wells (eight net) on its operated acreage on the CNQ-7/A Block, resulting in ten producing oil wells, one gas well, three wells cased and awaiting completion and two dry and abandoned wells.
Petro Andina Resources Inc. is a private company headquartered in Calgary, Canada and operating in Argentina.
For further information
Melesia Kasha, (403) 237-1700 or Bill Hogg, (403) 237-1701
Source: Petro Andina Resources Inc.