News ReleasePetroMagdalena announces exploration updateTORONTO, Nov. 28, 2011 /PRNewswire/ - PetroMagdalena Energy Corp. (TSXV: PMD), a company focused on oil and gas exploration and production in Colombia, today announced an update on its ongoing exploration program.Luciano Biondi, Chief Executive Officer, commented: "We are pleased with the momentum we have achieved with our exploration program, which we fully intend on continuing into 2012. The testing for the Yaraqui-1X well in the Topoyaco block has been prepared and operations are ongoing, and the new discovery at our light oil field, Petirrojo, although still at early stages, shows great promise, with the Petirrojo-2 well being tested and the Petirrojo-3ST completion to follow."Topoyaco BlockIn the Yaraqui-1X exploration well, a seven inch liner was successfully cemented from 8,356 feet MD to 10,643 feet MD last week and the first test, which is being conducted in the Villeta formation, has begun. Results of this test will be announced when completed. Four intervals in total are to be tested, three in the Villeta formation and one in the Neme sand of the Lower Rumiyaco formation.Petirrojo Field (Cubiro Block B)The Petirrojo-2 development well will be completed in two sands, the Carbonera C-7A (8 feet of net pay) and C-7B (23 feet of net pay). Initial testing of the well is currently being conducted, the results of which will be provided when completed.The Petirrojo-3ST development well has also been drilled and cased. A workover rig will move in after the completion of the Petirrojo-2 well and the drilling rig is moved off location. The Petirrojo-3ST well will also be completed in the Carbonera formation, C-7A and C-7B sands, with 8 and 21 net feet of net pay respectively.The Petirrojo-1X well is currently producing at a stable rate of 1,002 bopd, with 67% water cut from Carbonera C-7 with an electrical submersible pump.Yopo Structure (Cubiro Block B)The Yopo exploration prospect is located 2 km north of the producing Petirrojo Field and 5 km south of the producing Palmarito Field (operated by Perenco on the offsetting block). The exploratory well Yopo-1X will be drilled to test this structure and is expected to be spudded within two weeks. The main objectives in this well are the Carbonera C7 sands, estimated to be at a depth of 5,800 feet MD. The drilling location is ready and the drilling rig is 98% mobilized.Arrendajo BlockThis Block is 7 km north of the Cubiro Block and the exploratory well Azor-1X will be directionally drilled to test the Carbonera formation at approximately 7,200 feet MD. The location and access road for Azor 1X well will be completed in one week and as soon as the drilling rig finishes the Petirrojo-2 well completion, it will move to drill the Azor-1X exploration well.Santa Cruz BlockThe Santa Cruz Block is located in the Catatumbo Basin in Colombia and the exploratory well Santa Cruz 1X is being drilled to test the Mirador and Barco formations at an approximate total depth of 13,500 feet MD. The well was spudded on the 20th of November and is currently drilling at 2,553 feet MD and it is expected to be at depth in the middle of the first quarter of 2012.Carbonera BlockThe Cerro Gordo-1 gas well in the Carbonera Block was shut in on the 9th of November, 2011, for the first long term pressure build up as part of the Company's technical evaluation plan for this field. Plans are progressing to spud an exploratory well in the first quarter of 2012, and this well will fulfill the last exploration obligation on the block. The exploration well will target the La Luna, which is the producing interval in Cerro Gordo 1 well, and Cogollo formations.