I believe we have a poison pill clause...in place to make sure we get full value if an offer materialises.
Tremendous amout of drilling upcoming
I see 12,500 bopd by Dec. 31st see below
Las Maracas Field (Los Ocarros Block, 50% WI): The Las Maracas field gross production for the second quarter of 2013 averaged 9,706 bopd, and we have seen a steady increase in average daily production levels of 8,712 bopd, 9,810 bopd and 10,596 bopd for the months of April, May and June, respectively. Following the completion of Las Maracas-11, the Tuscany 109 rig will skid to drill Las Maracas-10, which is targeting the Gacheta formation in an attic position. Up to 3 additional development wells and one additional appraisal well (Las Maracas Sur-1) are planned for the remainder of 2013.
The La Guira-1 exploration well targeting an exploration prospect to the south of the Las Maracas Field is expected to spud early in the fourth quarter of 2013.
Balay Field (Balay Block, 15% WI): Average gross production for Q2 2013 was 1,287 bopd from 2 wells. The operator plans to work over the currently shut-in Balay-1 well and place on production, and is monitoring the production performance of Balay-4 before deciding whether or not to drill Balay-5.
La Casona Appraisal (El Eden Block, 40%WI): The long-term test production facility at La Casona is more than 85% complete, and production start up is expected before the end of September.
The La Casona-2 appraisal well was side-tracked for operational issues on July 5, before reaching any reservoir objectives, and the sidetrack well is currently drilling in the Carbonera C5 Formation at a depth of 13,723 feet (measured depth). This well is expected to reach its target depth by mid-August and following completion and testing, the Tuscany 119 rig will mobilize to drill the Rumi-1 exploration well also located on the El Eden Block.
Curiara-1 Discovery (El Porton Block, 25% WI, Curiara discovery; 100% WI, exploration area):
The Curiara-1 long-term test is expected to start-up early in Q1 2014, and run for a period of six
months.
Additionally, partners elected not to participate in the exploration area of the El Porton Block in
the next exploration phase (5). Petroamerica still sees significant exploration potential on this
block and will continue into phase 5 assuming 100% of the commitment and working interest.
Petroamerica is required to drill one exploration well to be spud before end January 2014, and a
prospect called Crypto-1 has been identified on re-processed 3D seismic. The partners have
retained their respective working interests in the Curiara-1 discovery evaluation area only.
The latest activity schedule for the remainder of 2013 and the early part of 2014 is outlined below.
Block WI Well Activity/Status Timing
Las Maracas-11 Completing Now
Las Maracas-10 Development Drilling Imminent
Las Maracas-12 Development Drilling Q3 2013
Las Maracas-14 (Sur-1) Appraisal Drilling Q4 2013
Las Maracas-15 Appraisal Drilling Q3 2013
La Guira-1 Exploration Drilling Q4 2013
La Casona-1 Long-Term Test Q3 2013
La Casona-2 ST Appraisal Drilling Q3 2013
Rumi-1 Exploration Drilling Q3 2013
El Porton
Curiara Discovery
25% Curiara-1 Long-Term Test Q1 2014
El Porton Exploration 100% Crypto-1 Exploration Drilling Q1 2014
LLA 10 39% Malavar-1 Exploration Drilling Q4 2013/Q1 2014
Los Ocarros 50%
El Eden 40%
Financial Update
As of the date of this press release, Petroamerica has over US $48 million in cash on hand, and
expects cash flows from production to remain strong through the rest of the year. Estimated
exploration and development expenditures for the remainder of 2013 are projected to be
approximately US $44 million, and the Company expects to finance it activities for the rest of
2013 and well into 2014 out of cash on hand and through cash flow generated from production
operations.