PetroMagdalena Energy announces the Petirrojo-2 development well on production at a rate of 1,108 bopd and the spudding of an...

    




 TORONTO, Dec. 12, 2011 /CNW/ - PetroMagdalena Energy Inc.  is  pleased to announce that the Petirrojo-2 development well has been on  production for the last 24 hours with an average rate of 1,108 bopd  natural flow with a 21.3% water cut of 40.4 degrees API light oil. This  represents approximately 775 bopd gross working interest share for the  Company. 

 Luciano Biondi, Chief Executive Officer of PetroMagdalena stated, "We  are very pleased to announce the Petirrojo-2 development well is now on  production, and that completion operations on Petirrojo-3 have started.  This development has now increased our daily production average to  approximately 4,400 boepd. The last two Llanos basin exploration wells  for this year will be drilled before year end, and is part of our plan  to increase light oil production and reserves." 

 The drilling rig used to drill and complete Petirrojo-2 is now being  mobilized to drill the Azor-1 exploration well on the adjacent  Arrendajo block where the Company now has a 67.5% beneficial working  interest, subject to ANH approval. A workover rig is also currently  being mobilized to Petirrojo-3, which was drilled and cased in November  2011, to complete the well and put it on production.  The Petirrojo-3  well is expected to be on production in approximately 12 days. 

 The Company is also pleased to announce that on December 11, 2011, the  Yopo-1 exploration well was spudded on the Cubiro Block, four  kilometers north of the Petirrojo production facility.  Yopo-1 will  test an exploration prospect located between the Petirrojo field and  the Palmarito located six kilometers north of the Yopo-1 well.  It is  anticipated the well will reach total depth (TD) in approximately 12  days. 

 PetroMagdalena is a Canadian-based oil and gas exploration and  production company, with working interests in 19 properties in five basins in Colombia. Further information can be  obtained by visiting our website at www.petromagdalena.com. 

 All monetary amounts in U.S. dollars unless otherwise stated. This news  release contains certain "forward-looking statements" and  "forward-looking information" under applicable Canadian securities laws  concerning the business, operations and financial performance and  condition of PetroMagdalena. Forward-looking statements and  forward-looking information include, but are not limited to, statements  with respect to estimated production and reserve life of the various  oil and gas projects of PetroMagdalena; the estimation of oil and gas  reserves; the realization of oil and gas reserve estimates; the timing  and amount of estimated future production; costs of production; success  of exploration activities; and currency exchange rate fluctuations.  Except for statements of historical fact relating to the company,  certain information contained herein constitutes forward-looking  statements. Forward-looking statements are frequently characterized by  words such as "plan," "expect," "project," "intend," "believe,"  "anticipate", "estimate" and other similar words, or statements that  certain events or conditions "may" or "will" occur. Forward-looking  statements are based on the opinions and estimates of management at the  date the statements are made, and are based on a number of assumptions  and subject to a variety of risks and uncertainties and other factors  that could cause actual events or results to differ materially from  those projected in the forward-looking statements. Many of these  assumptions are based on factors and events that are not within the  control of PetroMagdalena and there is no assurance they will prove to  be correct. Factors that could cause actual results to vary materially  from results anticipated by such forward-looking statements include  changes in market conditions, risks relating to international  operations, fluctuating oil and gas prices and currency exchange rates,  changes in project parameters, the possibility of project cost overruns  or unanticipated costs and expenses, labour disputes and other risks of  the oil and gas industry, failure of plant, equipment or processes to  operate as anticipated. Although PetroMagdalena has attempted to  identify important factors that could cause actual actions, events or  results to differ materially from those described in forward-looking  statements, there may be other factors that cause actions, events or  results not to be anticipated, estimated or intended. There can be no  assurance that forward-looking statements will prove to be accurate, as  actual results and future events could differ materially from those  anticipated in such statements. PetroMagdalena undertakes no obligation  to update forward-looking statements if circumstances or management's  estimates or opinions should change except as required by applicable  securities laws. The reader is cautioned not to place undue reliance on  forward-looking statements.  

 Statements concerning oil and gas reserve estimates may also be deemed  to constitute forward-looking statements to the extent they involve  estimates of the oil and gas that will be encountered if the property  is developed. Boe may be misleading, particularly if used in isolation.  A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency  conversion method primarily applicable at the burner tip and does not  represent a value equivalency at the wellhead. Estimated values of  future net revenue disclosed do not represent fair market value. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this news  release.  

PetroMagdalena Energy Corp.


CONTACT:  Michael DaviesChief Financial Officer(416) 360-7915Miranda SmithInvestor Relations Representative(647) 428-7422 


    

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