PetroMagdalena suspends Santa Cruz-1X exploratory well and provides information on blockade of roads in Colombia

    




 Santa Cruz-1X Well Suspended 

 TORONTO, April 24, 2012 /CNW/ - PetroMagdalena Energy Corp.   has finished drilling and testing of the Santa Cruz-1X well located in  the Santa Cruz Block in the Catatumbo Basin.  Based on the results of  the testing program, the well has been suspended to allow for further  geological studies and a final conclusion on the prospectivity of the  area.  PetroMagdalena has a 70% working interest in the Santa Cruz Block, the  Santa Cruz-1X well is the first exploration well on the block. 

 The testing program consisted of three tests in the Barco, the first  with water and traces of oil, the second two wet, one in the Cuervos  with no inflow and two tests in the Mirador, both tests resulting in a  natural flow of water. 

 The program tested the following intervals: 

  





                   Santa Cruz-1X

     

    Test    Formation      Interval

                           

    DST 1   Barco         11, 263-276

                           

    DST 2   Barco         11, 083-103

                           

    DST 3   Barco         11, 017-027

                          11, 040-066

                           

    DST 4   Los Cuervos   10, 714-724

                           

    DST 5   Mirador       9, 726-746

                          9, 842-862

                           

    DST 6   Mirador       9, 734-754

                          9, 494-524

                          9, 470-480

                           






 Blockade Affects Cubiro 

 On the morning of April 19, 2012, small groups of people began illegally  blocking roads on the Cubiro Block, in the municipalities of Trinidad  and San Luis de Palenque, which has led to a lack of public order in  the area.  These persons are not employees or contractors of  PetroMagdalena or associated in any way with the company.  The  blockades and the actions of those involved have resulted in a lack of  public order which impacts PetroMagdalena's operations in the area. 

 As a result of these measures, a temporary production halt has been  initiated on certain wells located in the Cubiro Block.  Management  estimates that approximately 3,700 barrels of oil per day are currently  shut-in.  PetroMagdalena has evacuated all non-essential operational  personnel from the Cubiro Block to ensure their safety. The Company's  priority is to maintain the well-being of our personnel and contractors  and to limit any potential damages and we will continue to take all  necessary measures to do so. 

 PetroMagdalena's social responsibility practices and policies include a  full time Social Manager and permanent social representatives in the  area of operations.  PetroMagdalena is committed to open and honest  dialogue with stakeholders and members of their local communities.  The  Company will continue to work with the National Government authorities  for restoring law and order in the area and will provide all necessary  support requested. 

 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.  

 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) 360-7915Belinda LabatteInvestor Relations Representative(647) 436-2152 


    

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