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Petro Vista Announces Completion Underway at Tartaruga and Provides Operations Update
VANCOUVER, BRITISH COLUMBIA � December 16, 2010 - (TSX-V:PTV) Petro Vista Energy Corp. (�Petro Vista� or the "Company"), provides the following operational update.
Brazil - Tartaruga:
Petro Vista has been advised by the operator of this block, UP Petroleo, that it has been granted environmental and production permits and has mobilized a work over rig and commenced testing and completion of the previously announced discovery (see news release dated April 12, 2010). The completion should be accomplished within one week and, assuming success, this well can be brought immediately into production using the existing facilities.
The well exhibits at least 101 feet of net pay based on shows while drilling and petro-physical analysis. The well is updip from well (SES-107D) which is currently producing at rates up to 280 and 400 bopd gross and has been in production for 9 years with an initial production rate of 1600 bopd (42o API).
Following the completion of its farmout obligations to TDC Engineering, Petro Vista and UP Petroleo intend to commence the proper process in Brazil for the acquisition from UP Petroleo and transfer to Petro Vista of a 37.5% working interest (27.23% net revenue interest) in the Tartaruga Block, such transfer being subject to first receiving all necessary approvals from Petrobras Brasilia S.A and the Agencia Nacional do Petroleo (ANP).
Colombia - Morichito:
Petro Vista (50% interest; operator) partners Golden Oil Corp and Green Power.
Evaluation continues on several development options for the M-5 well discovery which previously tested oil in two zones out of three potential pay zones as evidenced by well logging and sidewall cores (see news release dated March 25, 2010). However, due to an uncommonly strong rainy season in Colombia, there has been no access to our M-5 well or the planned location for our exploration / appraisal well M-5B which is now anticipated to be spud in February 2011.
Testing of the M-5 well will begin as soon as the Ministry of Mines approves our completion and testing plan and we can access the well location. The test should begin before the end of January 2011 and will last up to 45 days. Negotiations are underway on treating and transportation of crude produced which will be dependent on flow rates from production testing. The anticipated net cost to Petro Vista completion and testing of M-5 are US$550,000.
All permits are in place for the M-5B well (exploration / appraisal well). We are in the process of completing the prognosis, which will be sent to the Ministry of Mines and have begun negotiation on a rig and turnkey operations contracts. The Morichito-5B well will be drilled at a location that will test the updip extension of the previously announced discovery as well as testing deeper horizons within the Cretaceous section. This well will be tied into the early production system if successful. The anticipated net cost to Petro Vista of the M5-B well is US$1,750,000.
Colombia - La Maye:
Petro Vista (25% interest; non-operator) partners New Horizon Explorations, Inc. (operator) and Petrodorado Energy Ltd.
Exploration well Noelia-1 well is awaiting testing of the previously announced zones of interest (see news release dated November 20, 2009) due to excessive flooding of the Magdalena River restricting access to the block. The Agencia Nacional de Hidrocarburos (ANH) granted an extension until the end of November 2010 for the test of up to three zones in the well and we are waiting on approval to a further extension due to lack of access to the area to allow for permitting by the ANH. Considering the current situation we expect to begin tests during December or early January.
The next exploration well M-4 is to be drilled in the southern part of the block. Operator New Horizon Exploration expects to receive the environmental permit for the well in January, after which access roads to the location will be built and a rig mobilized to drill the well.
The M-4 well will be drilled in a stratigraphic structural trap and we expect to encounter thick Cienega de Oro carbonates as well as potential clastic reservoir intervals.
Capital contribution to this project, including the testing of the Noelia-1 well and the drilling and completion of the M-4 well have previously been paid and Petro Vista has no additional capital requirements.
Colombia - Block SSJN-5:
Petro Vista (25% interest; non operator) partners SK Energy Limited (operator) and Petroamerica Oil Corp.
All permits have been received for the 500 km 3D seismic program to be shot as part of the Phase 1 exploration program over the highest potential prospect, La Mocha Consuelo located in the southeastern portion of the block. The program has been initiated with approximately 7% completed to date. The total cost of the survey is estimated at approximately US$18,450,000 with the net carried cost to Petro Vista (25%) of US$4,612,500. This structure previously produced gas up to 200mcfg/month in shallow reservoirs and could have deeper oil targets. The survey should be completed by the end of the first quarter of 2011, after which processing and interpretation will be completed.
Petroamerica Oil Corp. will cover 100% of Petro Vista costs on this 3D seismic program as its farmin obligation to earn a 25% participating interest in the block.
About Petro Vista Energy Corp.
Headquartered in San Clemente, California, USA, Petro Vista Energy Corp., is an independent exploration company engaged in the acquisition, exploration and development of oil and natural gas properties located in South America. The Company has exploration, development and production rights to over 727,031 acres gross (197,697 net) leasehold acres in Colombia and Brazil. The Company's website at www.pvecorp.com provides additional information about the Company's plans, including photographs and other information with respect to its operations and assets.
ON BEHALF OF PETRO VISTA ENERGY CORP.
"Read Taylor"
Read B. Taylor, President and CEO
NEITHER THE 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 RELEASE.
This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling, completion and production risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
For further information please contact:
Petro Vista Energy Corp.
Investor Relations
Toll Free: +1 (877) 427-3876
Email: investor@pvecorp.com
Website: www.pvecorp.com
Mailing Address:
Petro Vista Energy Corp. (USA)
302 North El Camino Real Suite 108
San Clemente, California 92672, USA
Tel: +1 (949) 542-3345
Fax: +1 (949) 542-3347
E-mail: info@pvecorp.com
Web: www.pvecorp.com
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