PMD DISCOVERYPetroMagdalena Energy Announces Copa B-1 Discovery, An Update On Exploration Drilling, and Senior Notes and Warrants Now TradingCanada NewsWireTORONTO, Sept. 11, 2011 /CNW/ - PetroMagdalena Energy Corp. (TSXV: PMD) is pleased to announce that it has discovered a new light oilfieldwith the Copa B-1 exploration well, with the well testing 1,045 bopdof 39.3 degrees API light oil over the initial 3-day production test.This represents 597 bopd gross working interest share for the Company.Luciano Biondi, Chief Executive Officer of PetroMagdalena stated, "I amexcited as this has a direct impact on our bottom line and followsdirectly after our Petirrojo-1 discovery, which has produced at anaverage of 1,831 bopd over the past 20 days. This is a very positivedrilling result as it significantly improves the potential of theremaining exploration acreage on the Copa trend in the Cubiro block,our core producing asset in Colombia, and the rig is now moving to spudthe Copa AS-1 exploration well."Located in the Cubiro Block of the Llanos Basin, the Copa B-1 well, inwhich the Company holds a 57% working interest, was spudded on August18, 2011 and directionally drilled to a total depth of 6,862 feetmeasured depth ("MD"). The top of the C5 and C3 Carbonera sections wereencountered at depths of 5,251 feet (MD) and 5,045 feet (MD),respectively. Well logs indicate a total of 41 feet of net oil sand, 24feet in three C5 sands, and 17 feet in two C3 sands. Porosities rangefrom 24% to 28% in the C5 and 27% to 29% in the C3 sands. Afterperforating 17 feet in the two lower C5 sands and installing anelectric submersible pump ("ESP"), the well produced at an average rateof 1,067 bopd of 39.3 degrees API oil over the latest 24-hour period ata BS&W of 0.9% and a downhole pump intake pressure of 1623 psi, a 23.2%drawdown. The well testing program is ongoing and final results will beprovided.Based on seismic interpretations, the accumulation discovered by CopaB-1 is a 1.3 kilometre-long structure with an estimated closure of 140acres, corresponding to the typical exploration play in the LlanosBasin. The Copa B structure is on trend with the Company's Copa Field,4 kilometres to the north, which was brought on production last yearwith the Copa-1 well, which was completed in two C5 sands from the samestratigraphic level as the ones tested in Copa B-1 well, and hasproduced 200,000 barrels of 40 degrees API oil over the past 16 months.In Cubiro Block C, the Company is currently moving the drilling rig todrill the Copa AS-1 exploration well from the same operating pad with atarget total depth of 7,716 feet (MD). Copa AS-1 will test a similarstructure as Copa B, on trend with the Copa Field and immediately northof the Copa B discovery. Once the drilling of the Copa AS-1 well isterminated, a work over rig will be mobilized to test this well and therest of the C5 and C3 sands penetrated by the Copa B-1 well.PETIRROJOThe Petirrojo-1 discovery has produced at an average rate of 1,831 bopd(Company share, 1,282 bopd before royalties) over the past 20 days witha sustained pump intake pressure.TOPOYACOOn August 31, 2011, Trayectoria Oil & Gas, the operator for the TopoyacoBlock, spudded the Yaraqui-1X well in the central part of the block.The well is planned to reach a total depth of 10,509 feet MD, or 9,402feet true vertical depth (TVD), or 8,484 feet TVDSS, and is targetingthe Cretaceous Villeta and Caballos formations in a sub-thruststructure called Prospect "D". This prospect is a sub-thrust structureindependent from previously drilled structures "B" and "C" in theblock. Pacific Rubiales Energy Corp. recently announced thatpreliminary prospective resources (best estimate) for Prospect "D" are51 MMbbls.As previously announced, Pacific Rubiales has requested the approval ofthe ANH to become the operator of the Topoyaco Block, which approvalremains pending.SENIOR SECURED SERIES A NOTES AND ACCOMPANYING WARRANTSOn September 8, 2011, 31,050 senior secured series A notes and 1,330,714share purchase warrants, issued pursuant to the Company's debtfinancing of C$31,050,000 that closed on May 5, 2011, began trading onthe TSX Venture Exchange under the symbols "PMD.DB" and "PMD.WT",respectively.PetroMagdalena is a Canadian-based oil and gas exploration andproduction company, with working interests in 19 properties in five basins in Colombia. Further information can beobtained by visiting our website at
www.petromagdalena.com.All monetary amounts in U.S. dollars unless otherwise stated. This newsrelease contains certain "forward-looking statements" and"forward-looking information" under applicable Canadian securities lawsconcerning the business, operations and financial performance andcondition of PetroMagdalena. Forward-looking statements andforward-looking information include, but are not limited to, statementswith respect to estimated production and reserve life of the variousoil and gas projects of PetroMagdalena; the estimation of oil and gasreserves; the realization of oil and gas reserve estimates; the timingand amount of estimated future production; costs of production; successof exploration activities; and currency exchange rate fluctuations.Except for statements of historical fact relating to the company,certain information contained herein constitutes forward-lookingstatements. Forward-looking statements are frequently characterized bywords such as "plan," "expect," "project," "intend," "believe,""anticipate", "estimate" and other similar words, or statements thatcertain events or conditions "may" or "will" occur. Forward-lookingstatements are based on the opinions and estimates of management at thedate the statements are made, and are based on a number of assumptionsand subject to a variety of risks and uncertainties and other factorsthat could cause actual events or results to differ materially fromthose projected in the forward-looking statements. Many of theseassumptions are based on factors and events that are not within thecontrol of PetroMagdalena and there is no assurance they will prove tobe correct. Factors that could cause actual results to vary materiallyfrom results anticipated by such forward-looking statements includechanges in market conditions, risks relating to internationaloperations, fluctuating oil and gas prices and currency exchange rates,changes in project parameters, the possibility of project cost overrunsor unanticipated costs and expenses, labour disputes and other risks ofthe oil and gas industry, failure of plant, equipment or processes tooperate as anticipated. Although PetroMagdalena has attempted toidentify important factors that could cause actual actions, events orresults to differ materially from those described in forward-lookingstatements, there may be other factors that cause actions, events orresults not to be anticipated, estimated or intended. There can be noassurance that forward-looking statements will prove to be accurate, asactual results and future events could differ materially from thoseanticipated in such statements. PetroMagdalena undertakes no obligationto update forward-looking statements if circumstances or management'sestimates or opinions should change except as required by applicablesecurities laws. The reader is cautioned not to place undue reliance onforward-looking statements.Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this newsrelease.For further information:Miranda Smith Investor Relations Representative (647) 428-7422