Production averaged 30,836 bopd during April, nine percent or 3,214bopd lower than the first quarter primarily due to our Yatay-1 welloff-line for nine days in April for a pump replacement. Mayproduction to-date has averaged 33,103 bopd and reflects additionsin late April at Yenac-4 and Chilaco-1, which is partially offsetby approximately 750 bopd of production that was temporarilyoff-line due to community disturbances in the Central Llanos and isexpected to be back on-line in the next few days. First quarter production averaged 34,047 bopd, 1,306 bopd or 4percent lower than the fourth quarter of 2011. Our Deep Llanosproduction decreased 2,641 bopd or 10 percent mainly due to naturaldeclines, offset partially by our Yatay-2 development well that wasbrought on production in mid-January.
Our Central Llanos productionincreased 1,190 bopd or 37 percent due to the addition of Yenac-5in February and our Tucuso-1 discovery well in mid-March. Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia During the quarter, we drilled four wells (Yatay-2, Iboga-1,Tente-1 and Chilaco-1). We also drilled five Corcel water disposalwells (ASWD-3, CSWD-2, CSWD-3, DSWD-1 and DSWD-2). On our Guatiquia Block, the Yatay-2 well was drilled to a totalmeasured depth of 11,960 feet on January 1 st.
The well targeted by-passed pay in the Guadalupe formationencountered in the original discovery well. The well was placed onproduction in late January and averaged 519 bopd for the remainderof the quarter. On Block 31, the Iboga-1 well concluded our initial explorationdrilling program on the southern portion of Block 31. In the finaltest of a Lower Sand 2 interval, the well tested uneconomicquantities of 23 degree API oil. In January 2012, we mobilized two drilling rigs to our Corcel Blockexecuting a multi-well drilling program.
We drilled our Tente-1well to a total measured depth of 14,605 feet on February 28 th . Well logs indicate 21 feet of potential net oil pay in theGuadalupe and Lower Sand 1 formations. We cased the well as apotential oil producer and, in early May, we commenced a threeinterval testing program. Also during the quarter, we drilled ourChilaco-1 well to a total measured depth of 12,360 feet on March 18 th . Well logs indicate 24 feet of potential net oil pay in the LowerSand Formations.
We cased the well and placed it on production atthe end of April at 437 bopd with a 45 percent water cut. The rigis now moving to drill our Hungaro location on the Corcel Block. On March 31 st we began to drill our Guala-1 prospect reaching 12,432 feetmeasured depth on May 3 rd . Well logs indicate 47 feet of potential net oil pay primarily inthe Lower Sand 1 formation and we are casing the well as apotential oil producer. Following Guala-1, we plan to move the rigto drill our Lapa prospect on the Corcel Block.
Foothills Blocks (Block 25, 31, 59 and 15), Deep Llanos Basin,Colombia In January, we had drilled our Bromelia-1 prospect to 16,919 feetwhen, during an operation to remove the bottom-hole assembly fromthe well, the drill pipe parted resulting in a blockage of the wellbore. As a result, we side-tracked the well at 12,000 feet. OnApril 26, 2012, we successfully cased the well at our thirdintermediate casing point of 18,015 feet measured depth afterpenetrating the Carbonera, Mirador, Guadalupe and Barco formations.While drilling the initial 18,015 feet of the well, we encounteredan initial 204 feet of net potential reservoir. We have initiallyidentified 40 feet of potential net hydrocarbon pay and we do nothave a complete data set over the remaining 164 feet of reservoirdue to logging tool failures.
Hydrocarbon shows, from geologicaldescription and or mud gas analysis, were encountered in theCarbonera C8, Mirador, Guadalupe and Barco formations. We believethat the thickness of reservoir-quality intervals encountered atthese drilling depths is very encouraging for the prospectivity ofthe Block. After resuming drilling operations, we penetrated theUne formation that exhibited strong indications of high pressuregas in a 30 foot interval. The well reached targeted depth of18,550 feet on May 9 th and we plan to case the well and acquire a complete set ofcased-hole logs that will help analyze the remaining 164 feet ofreservoir initially identified and in addition obtain data over thelast 535 feet recently drilled.
Following the log analysis, we planto conduct a multi-zone program. Following Bromelia-1, we plan to drill our second explorationprospect on Block 25, Canatua-1. We also have initiated a further256 square kilometre 3D seismic acquisition program on the northernportion of Block 25. The 3D seismic, combined with our wellresults, will help to significantly improve our geological andgeophysical understanding of the area. Central Llanos Basin (Casimena, Castor, Casanare Este, MapacheBlocks), Colombia In the first quarter, we drilled two exploration wells (Tucuso-1and Cerillo-2) on our Mapache and Casanare Este Blocks, and oneappraisal well (Yenac-5) on our Casimena Block.
In April 2012, wedrilled an additional appraisal well on our Casimena Block,Yenac-4. On our Mapache Block, we drilled the Tucuso prospect to 7,391 feetmeasured depth on February 6 th . The well is located 20 kilometres southeast from our Disa oildiscovery. Well logs indicated net hydrocarbon pay of 38 feet infour intervals, including 26 net feet in the Ubaque Formation.
Thewell was placed on production March 15 th and averaged 1,106 bopd over the remainder of the month. On our Casanare Este Block, we drilled the Cerillo-2 prospect to9,400 feet measured depth on March 24 th . The well is located 20 kilometres southeast from our firstCerillo oil discovery drilled in 2010. We cased the well and planto complete a testing program early in the third quarter, whenweather conditions are expected to be dryer and allow consistentaccess to the well.
We drilled our Yenac-5 appraisal well to a total measured depth of7,834 feet on January 13 th . Well logs indicated 58 feet of net pay, 35 feet in the UpperMirador formation and 23 feet in the Lower Mirador formation.Yenac-5 penetrated the top of the Mirador formation 10 feetstructurally higher than in Yenac-3. We placed Yenac-5 onproduction on January 31 st and the well averaged 1,773 bopd of 16 degree API during theremainder of the quarter. Following Yenac-5, we drilled our Yenac-4 appraisal well. Well logsindicated 55 feet of net pay, 36 feet in the Upper Miradorformation and 19 feet in the Lower Mirador formation.
We placedYenac-4 on production in late April at over 1,000 bopd of 16 degreeAPI. Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, ChiguiroEste), Colombia In 2011, we drilled our first horizontal well, Tatama-1, near ourMochelo discovery on our Rio Ariari Block. The well was drilled toa total measured depth of 6,550 feet including a 1,000 foothorizontal section. Early in 2012, the well was completed with 96feet of blank pipe and 889 feet of screens (Meshrite ).During our initial tests, the productivity of the well wassignificantly lower than that encountered in our original Mochelo-1vertical discovery well. We pulled the liner and re-initiated amulti-rate production test, resulting in oil rates up to 250 bopdat water cuts ranging from 75 to 90 percent.
Over 37 days oftesting, the well produced an average of 107 bopd at a 79 percentwater cut. Based on the Mochelo vertical well productivity, thehorizontal well productivity was still lower than we expected. Wethen ran a slotted liner and production logs into the well todetermine which portions of the well bore are contributing toproduction. Based on our analysis of the initial production logdata, we believe there is fluid inflow coming from the entirelength of the horizontal section.
We plan to place the well on along-term production test while running a coiled tubing string toinject diluent down-hole to maximize the oil production from thewell. The drilling rig is currently moving to our Dara-1 prospecton our Chiguiro Oeste Block. We also drilled four stratigraphic wells (ES-22A, ES-36, ES-42 andES-42A) in the quarter. The ES-42A well, which encountered 37 feetof potential pay in the lower Mirador formation, confirming a newplay concept developed from the interpretation of our 3D seismic.Subsequent to March 31 st , we drilled ES-44 which encountered 31 feet of potential net oilpay. We have now drilled a total of 11 stratigraphic wells and onaverage we have encountered 21 feet of potential net oil pay and inthree wells the net pay exceeded 30 feet.
The rig is currently drilling our next well, ES-45, and we plan todrill up to seven more stratigraphic wells targeting new playconcepts to identify and quantify the heavy oil potential of ourRio Ariari Block. Following completion of our stratigraphicdrilling program, we plan to select a location for our nextconventional horizontal heavy oil well. Orito, Putumayo Basin, Colombia In January 2012, we place the Orito-193 well on production at over800 bopd of 26 degree API oil in the Villeta Formation, thesecondary reservoir target in the field. Based on the Orito-193result, we identified six existing wells that can be re-completedfor production in the Villeta Formation.
We plan to finish thesix-well recompletion program in the third quarter of 2012. In thefourth quarter of 2011, we suspended our drilling program on theBlock pending the receipt of new environment permits. We expect torecommence our development drilling program early in 2013. Neiva, Upper Magdalena Basin, Colombia Late in the third quarter, we suspended our drilling program on theBlock pending the receipt of new environment permits.
We expect toreceive new permits in 2013, at which time we plan to recommenceour development drilling program. Block 126, Peru The testing of the La Colpa 2X well was completed in April 2012 andnon-commercial volumes of hydrocarbon were encountered. Loganalysis and sample evaluation had suggested potential forhydrocarbons in several zones; namely the presence of 18 feet ofnet potential oil pay in the Tarma sandstone and 72 feet of netpotential oil pay in three intervals of the Copacabana reservoir inseveral porous carbonate intervals. Despite encountering oil andgas shows in the samples while drilling, it appears the entireCopacabana section has been flushed with fresh water leaving onlyresidual hydrocarbon saturations.
Unusually low salinities in theformation waters complicated log analysis as fresh water generatesa similar high resistivity log signature to that of hydrocarbons.It is encouraging that these Copacabana limestone reservoirsdemonstrated excellent deliverability, with flow rates of up toalmost 4,000 barrels of fluid per day. Following La Colpa 2X, we plan to move equipment to drill ourSheshea-1X prospect on the Block. The Sheshea prospect is anindependent prospect and a different play-type from La Colpa. Weare also targeting multiple reservoir formations in Sheshea.
Weexpect to begin drilling operations from this well in July, subjectto weather conditions. Blocks 114 and 131, Peru Petrominerales holds a 30 percent working interest in Blocks 114and 131. On Block 131, the operator has identified two drillableprospects. The Environmental Impact Assessment ("EIA") for drillingwas submitted in June 2011 and the first well is planned April2013.
On Block 114, the next exploration phase includes theacquisition of 325 kilometres of 2D seismic by July 2013. To date,four drillable prospects and six leads have been identified on thisBlock. The operator applied for and was granted force majeurestatus over the block in December 2011 due to unusually high riverlevels and heavy rainfall which has flooded out a portion of thisblock making seismic acquisition impossible. The river levels havesubsided and the block is now out of force majeure and we expectthe seismic program to recommence in June.
The operator isresponsible for our share of the costs under the current seismicexploration phase, as well as our share of costs for the firstexploration well on each block. Block 161 and 141, Peru Block 161, situated in east central Peru, is 1.2 million acres insize and Petrominerales has an 80 percent working interest. Wesubmitted an EIA that covers our planned 353 kilometre 2D seismicprogram and we are waiting on the ministry of environment'sapproval. We are also awaiting feedback on our first round ofcommunity workshops.
Block 141, situated in southern Peru, is 1.3million acres in size and Petrominerales has an 80 percent workinginterest. Currently, the Block is in force majeure due to newgovernment regulations requiring additional communityconsultations. As a result, our current commitment to complete a300 kilometre 2D seismic program by July 2012 has been suspendedpending completion of these additional consultations. OUTLOOK Our long-term objective is to focus on delivering high-impactexploration success, building net asset value, and generatingattractive total returns for shareholders through the followingstrategies: Material growth in reserves through the execution of a balanced,diversified exploration drilling program; Maintain a multi-year drilling inventory of exploration prospectsby continually adding to our land position and acquiring highquality 3D seismic over those lands, in 2012 we plan to acquireover 1,000 square kilometres of new 3D seismic data; Explore for and develop large heavy oil resource accumulations; Rapidly convert new discoveries into production and cash flow; Demonstrate leadership in oil and gas exploration, deployment anddevelopment of technology, a Company-wide focus on innovation,constant regard for the health and safety of our employees,emphasis on industry leading environmental performance and ongoing,meaningful dialogue with our stakeholders; Internally fund our growth through cash flow generation from ourestablished assets; and Provide a dividend yield to investors.
Our production base continues to generate significant cash flows,$200 million in the first quarter, and our strong balance sheetincludes cash on hand of $176 million and a completely undrawn,secured credit facility. Our immediate focus is on executing ourhigh-impact exploration drilling programs in Colombia and Peru. Inaddition, we are acquiring over 1,000 square kilometres of new 3Dseismic that we expect will add significantly to our prospectinventory and provide new drilling opportunities for our 2013program. We are very encouraged by our early results on our firstfoothills well, Bromelia, and our Guala well on the Corcel Blockand look forward to updating our shareholders on our progressthrough 2012.
ANNUAL GENERAL MEETING Our annual meeting of shareholders will be held May 10, 2012, at10:00 a.m. Bogot time (9:00 a.m. Calgary time, 11:00 a.m.Eastern Time) at the Radisson Royal Bogot Hotel, MillenniumRoom, Calle 113 No. 7 - 65, Bogot , Colombia. For thoseunable to attend in person, the meeting and a comprehensivecorporate presentation following the meeting will be webcast liveand can be accessed using the following web address: envivo.videoteca.com.co/petrominerales/12052012/ Petrominerales Ltd.
is an international oil and gas company operating in Latin Americasince 2002. Today, Petrominerales is the most active explorationcompany and the fourth largest oil producer in Colombia. Our highquality land base and multi-year inventory of explorationopportunities provides long-term growth potential for years tocome. Forward Looking Statements.
Certain information provided in this press release constitutesforward looking statements. Specifically, this pressrelease contains forward looking statements relating tothe Company's future exploration and development activities and thetiming for bringing wells on production. Theforward looking statements are based on certain keyexpectations and assumptions, including expectations andassumptions concerning the availability of capital, the success offuture drilling and development activities, the performance ofexisting wells, the performance of new wells, prevailing commodityprices and economic conditions, the availability of labour andservices, the ability to transport and market our production,timing of completion of infrastructure and transportation projects,weather and access to drilling locations. The reader is cautionedthat assumptions used in the preparation of such information,although considered reasonable at the time of preparation, mayprove to be incorrect.
Actual results achieved during the forecastperiod will vary from the information provided herein as a resultof numerous known and unknown risks and uncertainties and otherfactors. You can find a discussion of those risks and uncertaintiesin our Canadian securities filings. Such factors include, but arenot limited to: general economic, market and business conditions;fluctuations in oil prices; the results of exploration anddevelopment drilling, recompletions and related activities; timingand rig availability; availability of transportation and offloadingcapacity, outcome of exploration contract negotiations; fluctuationin foreign currency exchange rates; the uncertainty of reserveestimates; changes in environmental and other regulations; risksassociated with oil and gas operations; and other factors, many ofwhich are beyond the control of the Company. There is norepresentation by Petrominerales that actual results achievedduring the forecast period will be the same in whole or in part asthose forecast. Except as may be required by applicable securitieslaws, Petrominerales assumes no obligation to publicly update orrevise any forward looking statements made herein orotherwise, whether as a result of new information, future events orotherwise.
Petrominerales Ltd. Corey C. Ruttan President and Chief Executive Officer 403.920.0124 or 011.571.629.2701 Petrominerales Ltd. Jack F.
Scott Chief Operating Officer 403.920.0124 or 011.571.629.2701 Petrominerales Ltd. Kelly D. Sledz Chief Financial Officer 403.920.0124 or 011.571.629.2701. I am Shirts & Blouses writer, reports some information about shrink wrap sealers , laminated carrier bags.
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