Petro Vista to Acquire 25% Interest in La Maye Block, Lower Magdalena Basin, Onshore Colombia
May 29, 2008- 68,473 gross acres (27,710 gross hectares) La Maye Block located in prospective Lower Magdalena Basin, Colombia.
- 4 - 5 large prospects identified on Block.
- Increase portfolio of Contingent Resources.
- Favorable proximity to significant producing wells within and surrounding Cicuco Field.
- Mobilization of drilling rig scheduled for September 2008.
- Favorable access to existing oil pipeline for reduced spud-to-production times.
VANCOUVER, BRITISH COLUMBIA - May 29th, 2008 - (TSX-V:PTV) Petro Vista Energy Corp. ("Petro Vista" or the "Company"), an independent oil and gas exploration company, is pleased to announce it has entered into a Heads of Agreement with New Horizon Exploration Inc. ("New Horizon) to farm-in to a 25% working interest in the La Maye oil and gas exploration block located in the Lower Magdalena Basin, Colombia.
The La Maye Block consisting of 68,473 acres (27,710 gross hectares) and is located within the Lower Magdalena Valley, Colombia, which adjoins the Cicuco Oil Field that has produced over 44.69 million barrels of oil and 181.14 billion cubic feet of gas through June 2000 from 28 wells. Initial production rates from the area ranged from 600 - 4,000 barrels of oil per day. As of March 2008, the Cicuco was producing an average of 293.3 barrels of oil per day. The Agencia Nacional de Hidrocarburos ("ANH") has reported cumulative production for the Cicuco Oil Field from January 2005 to March 2008 to be 301,867 barrels of oil. Within a ten-mile radius, the Cicuco Oil Field also neighbors the producing Boquete, Zenon and Boquila oil fields. The La Maye Block, along trend with the Cicuco Oil Field, is adjacent to and south of the Occidental, Repsol and Ecopetrol Lucia Block. Oil from the Cicuco Oil Field is light sweet crude at 43 to 55 degree API. This information is taken from a resource evaluation completed on the La Maye Block by John Yu of Petrotech Engineering Ltd. of Burnaby, British Columbia, for Petro Vista, a qualified resource evaluator. The report dated effective May 1, 2008 and entitled "Evaluation of Interest of Petro Vista Energy Corp. in the La Maye Block, Lower Magdelena Valley, Onshore Colombia". A copy of this report has been filed on SEDAR and is accessible from Petro Vista´s website (www.pvecorp.com).
Phase 1 of the E&P Contract is 12 months in duration and consists of the reprocessing of 138 km of existing seismic data and the drilling of one exploration well to a minimum total depth of 5,000 feet. The reprocessing has already been completed with significantly improved results. Phases 2 through 6 of the E&P Contract are 12 months each in duration and consist of the drilling of one 5,000 foot total depth exploration well per phase. The current plan for La Maye is to drill up to four wells as part of the farm-in agreement. Up to five independent prospects have already been identified. The first well will spud by mid October. Depending on results of this first well 3D seismic data would be acquired prior to drilling the next or a continuation of the drilling program to confirm the discovered resources if any and/or explore additional prospects. Should more than one well be drilled in the first 12-month period an application to the ANH will be made to include these wells for a reduction in the subsequent years commitments.
Pursuant to the terms of the Heads of Agreement (the "Agreement") with New Horizon Exploration Inc. (the "Operator") Petro Vista will (subject to regulatory approval) acquire a 25% working interest in the La Maye Block (the "Block"), which has an Exploration and Production Contract ("E&P Contract") with the Agencia Nacional de Hidrocarburos (the "ANH"). The Agreement requires Petro Vista to assume 25% of the costs of a turn-key contract to drill four (4) wells in the Block at a net cost to Petro Vista of US$2,050,000. The Agreement will be superseded by a Joint Operators Agreement and a Participation Agreement.
The completion of this acquisition is subject to Petro Vista receiving TSX Venture Exchange acceptance and the ANH´s approval to the assignment to Petro Vista of the 25% interest in the Block.
Read B. Taylor, President and CEO of Petro Vista, comments, "The La Maye Block is a significant opportunity for us. La Maye is the second Petro Vista asset strategically acquired in Colombia as part of our plan to put together a balanced mix of low risk near term production opportunities similar to Morichito along with selected assets having 2008-2009 drilling opportunities for significant impact or exploration upside potential. We are excited about this acquisition as it offers Petro Vista an opportunity to explore for significant oil reserves by the end of the year at low cost."
Steven Benedetti, Vice President - South America of Petro Vista, says, "The La Maye Block is a significant project that we expect to develop in Colombia this year. Colombia is known to encompass one of the best hydrocarbon resource potentials in the world. With the success of nearby producing fields, as well as the Cicuco field that the La Maye Block lies adjacent to believe our positioning is favorable."
The Petrotech Report has evaluated the Company´s share of the resource in the La Maye Block as follows:
Low Estimate |
L&M Oil Resources(1) |
NPV of Future Net Revenue |
NPV of Future Net Revenue(1) |
||||
Prospect |
100% |
Gross |
Net |
0% |
10% |
0% |
10% |
Prospect #1 |
6,515 |
1,629 |
1,498 |
131,696 |
86,279 |
87,226 |
56,621 |
Best Estimate |
L&M Oil Resources(1) |
NPV of Future Net Revenue |
NPV of Future Net Revenue(1) |
||||
Prospect |
100% |
Gross |
Net |
0% |
10% |
0% |
10% |
Prospect #1 |
9,899 |
2,475 |
2,277 |
214,118 |
139,663 |
143,145 |
92,793 |
High Estimate |
L&M Oil Resources(1) |
NPV of Future Net Revenue |
NPV of Future Net Revenue(1) |
||||
Prospect |
100% |
Gross |
Net |
0% |
10% |
0% |
10% |
Prospect #1 |
13,979 |
3,495 |
3,213 |
313,441 |
204,034 |
210,565 |
136,452 |
(1) Estimated values disclosed do not represent fair market value.
If these resources are discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.
About Petro Vista Energy
Headquartered in Vancouver, Petro Vista Energy Corp. is an independent exploration company engaged in the acquisition, exploration and development of oil and gas properties located in South America. The Company has exploration, development and production rights to approximately 162,108 gross (64,664 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.
ON BEHALF OF PETRO VISTA ENERGY CORP.
"Read Taylor"
Read Taylor, President and CEO
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Certain statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. In addition, certain statements in this presentation may be considered forward-looking information under applicable Canadian securities laws. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events "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 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. These factors include the inherent risks involved in the exploration and development of properties, the uncertainties involved in interpreting drill results and other exploration data, fluctuating oil prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other specific factors that may be identified in the Company´s public disclosure. The Company undertakes no obligation to update forward-looking information except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements or information.
For further details, please contact:
Petro
Vista Energy Corp.
Investor
Relations
Toll
Free: (877) 427-3876
Email:
investor@pvecorp.com
Mailing Address:
Petro Vista Energy Corp. (USA)
910 South El Camino Real Suite D
San Clemente, California 92672, USA
+1 (949) 373-3655
Fax: +1 (949) 369-2810
E-mail: info@pvecorp.com
Web: www.pvecorp.com