CALGARY,
March 15, 2012 /PRNewswire/ -
ArPetrol Ltd. ("ArPetrol" or the "Company") (TSX-V:
RPT) is pleased to announce that Pedro
Americo Sanchez will be joining our Buenos Aires based team as our in-country
manager effective April 2nd,
2012. Pedro joins us following an extensive career
with Repsol-YPF, Astra and Occidental in Argentina, Peru and Bolivia. Most recently Pedro has been
the Director of Energy for the Provincial government of
Mendoza. Pedro will be replacing Troy
Wagner, who has been resident in Buenos Aires for ArPetrol since 2007 and is
leaving the Company for personal reasons.
Tim Thomas, ArPetrol
President and CEO commented, "We are delighted to be able to
welcome Pedro into the ArPetrol team at a very exciting time in the
Company's growth. With the start-up of the Faro Virgenes gas
field long reach drilling program and the added cash flow expected
to be generated by impending production increases, the Company will
be well-positioned to take advantage of the broad range of
opportunities that exist in Argentina. I would like to thank
Troy Wagner for all he has
accomplished in Argentina and for
assembling a very high quality team to execute our business
plan."
Operational Update
ArPetrol has initiated the mobilization for a June,
2012 spud of the first long reach well in the Faro Virgenes
field. The first well will take 45-50 days to drill and is
targeted to have initial production rates in excess of 6
MMscf/d. Plans are in place to drill two wells, depending on
the results from the first well. Production from these
wells would be immediately tied into ArPetrol's 100% owned gas
plant, which is in close proximity.
Other exploration opportunities on the Faro
Virgenes concession may be pursued under a subsequent drilling
program that will be evaluated after cash flow begins to be
generated from the long reach drilling program.
ArPetrol would also like to provide an update to
the 2011 and early 2012 drilling program that was recently
completed. The program was conducted in two blocks,
Blanco Los Olivios Orientale and
Catriel Viejo Sur. These
blocks were acquired as part of the asset package when ArPetrol
purchased Geodyne Energy S.A. and the Faro Virgenes asset.
Through completion of this program, ArPetrol will have fulfilled
the work obligations for those assets, allowing ArPetrol to now
focus on its key Faro Virgenes asset.
In the Blanco Los Olivios block, in which ArPetrol
holds a 20% working interest, two wells were drilled to test
shallow Tertiary targets. Although hydrocarbons were
encountered, they were deemed to be sub commercial in size, and
both wells have been abandoned. At Catriel Viejo Sur,
ArPetrol elected to increase its working interest from 20% to 50%,
and a well was recently drilled to test a shallow Tertiary target
as well as evaluate the unconventional potential in the Vaca Muerta
shales. The Tertiary Centenario was found to be wet at this
location and, although oil was found in the Cretaceous Tordillo
formation, the reservoir was deemed to be too tight to be
commercial. The core and wireline logs from the Vaca Muerta
shales are still being evaluated.
Tim Thomas,
President and CEO of ArPetrol said, "We are pleased with the
progress made to date with respect to our strategy. ArPetrol
has met all of the commitments in the Nequen basin program and has
demonstrated our ability to execute a multi-well drilling program
in Argentina. We anticipate
that cash flow from our 2012 long reach drilling program at Faro
Virgenes will position us for further growth."
The Company's unexpired mining leases from its
predecessor, RPT Resources Ltd., have been transferred to a third
party in exchange for a net smelter royalty.
ArPetrol continues to evaluate a number of
potential transactions which would be complementary to the current
portfolio of assets.
About ArPetrol Ltd.
The Company is a Calgary-based publicly traded company
currently engaged in oil and natural gas exploration, development
and production and third-party natural gas processing in
Argentina where it also owns and
operates a gas processing facility with capacity of 85 million
cubic feet (MMcf) per day.
Forward-Looking Information
This news release contains certain forward-looking
statements relating, but not limited, to operational information,
drilling plans and the timing associated therewith.
Forward-looking information typically contains statements with
words such as "anticipate", "target", "estimate", "expect",
"potential", "could", "should", or similar words suggesting future
outcomes. The Company cautions readers and prospective
investors in the Company's securities not to place undue reliance
on forward-looking information as, by its nature, it is based on
current expectations regarding future events that involve a number
of assumptions, inherent risks and uncertainties, which could cause
actual results to differ materially from those anticipated by the
Company.
Forward-looking information is based on
management's current expectations and assumptions regarding, among
other things, plans for and results of future transactions, future
drilling activity and production, availability of future capital,
future economic conditions, continued political stability in the
areas in which the Company is operating, and the Company's
continued ability to obtain and retain qualified staff and
equipment in a timely and cost-efficient manner. Although the
Company believes the expectations and assumptions reflected in such
forward-looking information are reasonable, they may prove to be
incorrect.
Forward-looking information involves significant
known and unknown risks and uncertainties. A number of
factors could cause actual results to differ materially from those
anticipated by the Company, including but not limited to risks
associated with the oil and natural gas industry (e.g., operational
risks in exploration and drilling; inherent uncertainties in
interpreting geological data; changes in plans with respect to
exploration or capital expenditures; the uncertainty of estimates
and projections in relation to costs and expenses; and health,
safety and environmental risks), weather delays and natural
disasters, processing interruptions and natural declines,
disruptions at third party facilities, union activities, the risk
of commodity price and foreign exchange rate fluctuations, the risk
of changes in legislation and fiscal regimes, the uncertainty
associated with negotiating with third parties (including
governments) in countries other than Canada and other risks associated with
international activity.
The forward-looking information included herein is
expressly qualified in its entirety by this cautionary statement.
The forward-looking information included herein is made as of the
date hereof and the Company assumes no obligation to update or
revise any forward-looking information to reflect new events or
circumstances, except as required by law.
Additional information relating to the Company is
also available on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE ArPetrol Ltd.