Petrominerales Discovers 53 API Gravity Oil in Peru

Petrominerales Discovers 53 API Gravity Oil in Peru 
CALGARY, ALBERTA -- (Marketwire) -- 10/21/12 -- Petrominerales
(TSX:PMG)(BVC:PMGC) is pleased to announce a light-oil discovery in
two zones of our Sheshea-1X well in the Ucayali Basin of Peru. The
Sheshea-1X exploration well is our second exploration well on Block
126 and was drilled to a measured vertical depth of 8,925 feet on
September 9th. We conducted four tests in three different formations.
In the Chonta formation, we produced an average of 1,430 barrels of
oil per day ("bopd"), with no water recovered. In the Agua Caliente
formation, we produced 80 bopd with a 97 percent water cut. The two
tests conducted in the Copacabana formation recovered water. Our
discovery demonstrates: (1) that our Peruvian acreage has attributes
for successful oil exploration (2) that an active petroleum system
and oil migration and trapping opportunities exist on the block; (3)
the validity of our geological model and interpretations; and (4)
that commercialization opportunities exist, as our light-oil
discovery provides sales flexibility to maximize pricing and is
located in proximity to river barge transportation. 
Sheshea-1X Test Results 
In the Chonta formation, we tested a ten foot perforated interval
with an electric submersible pump ("ESP") for a total of 37.5 hours
through temporary well-test equipment. A total of 2,235 barrels of 53
API gravity oil was produced at an average rate of 1,430 bopd, with
no water recovered during the test. Solution gas was present, but in
quantities too small to measure. Drawdowns at the end of the test
were 50 percent. Additional drilling, testing and 3D seismic will be
required to help evaluate this encouraging discovery. 
The Chonta sand is currently interpreted as a shoreface sand with
good lateral extent and continuity that was deposited on a
pre-existing high. Internally calculated potential resource volumes
suggest a potential of 14 million barrels of discovered petroleum
initially-in-place ("DPIIP"), based on minimal closure, to 140
million barrels of DPIIP based on maximum closure to interpreted
spill point. 
Prior to the Chonta test, we completed two tests in the Copacabana
formation that recovered water. A third test was conducted over an
eight-foot interval in the upper Agua Caliente formation. The test
was conducted with an ESP through temporary well test equipment. Only
formation water was recovered in the first 20 hours.  After that
point, traces of oil were observed, growing gradually to a three
percent cut of 42 API oil by the end of the 46.8 hour flow period.
The total fluid rate was 2,703 barrels per day. Drawdowns at the end
of the test were four percent. 
The Agua Caliente results are encouraging. We believe we tested a
transition zone in a down-dip position with a potential accumulation
up-dip of the well. Based on our interpretation of 2D seismic data,
we could gain up to 25 feet of additional elevation and potential net
oil pay. Internal calculations suggest that up to 25 million barrels
DPIIP is possible for the Aqua Caliente formation. Again, additional
drilling, testing and 3D seismic will be required to evaluate this
discovery. 
Sheshea-1X Commercialization Plan 
Our current plan is to incorporate these two encouraging test results
into our geological and seismic mapping. We are planning a 3D seismic
survey over the Sheshea structure to assist in the evaluation of the
test results and to select possible appraisal drilling locations.
Regulatory approval of the 3D seismic program is expected to take up
to 18 months. Concurrently, we will initiate the regulatory process
for possible commercialization. The timeline for potential
commercialization is uncertain at this point and will depend on 3D
seismic results, regulatory approval for possible commercialization,
subsequent appraisal drilling, and technical evaluations. 
Petrominerales Ltd. is an international oil and gas company operating
in Latin America since 2002. Today, Petrominerales is one of the most
active exploration companies and one of the largest oil producers in
Colombia. Our high quality land base and multi-year inventory of
exploration opportunities provides long-term growth potential for
years to come. 
Forward-Looking Statements and Cautionary Language. Certain
information provided in this press release constitutes
forward-looking statements. Specifically, this press release contains
forward-looking statements relating to the Company's future
exploration and development activities. The forward-looking
statements are based on certain key expectations and assumptions,
including expectations and assumptions concerning the availability of
capital, the success of future drilling and development activities,
the testing and performance of new wells, prevailing commodity prices
and economic conditions, the availability of labour and services, 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 cautioned that assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be incorrect. Actual results
achieved during the forecast period will vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors. You can find a discussion of those
risks and uncertainties in our Canadian securities filings. Such
factors include, but are not limited to: general economic, market and
business conditions; fluctuations in oil prices; the test results and
performance of exploration and development drilling, recompletions
and related activities; timing and rig availability; availability of
transportation and offloading capacity, outcome of exploration
contract negotiations; fluctuation in foreign currency exchange
rates; the uncertainty of reserve estimates; changes in environmental
and other regulations; risks associated with oil and gas operations;
impact of weather on operations; and other factors, many of which are
beyond the control of Petrominerales. There is no representation by
Petrominerales that actual results achieved during the forecast
period will be the same in whole or in part as those forecast; and
there is no representation by Petrominerales that the test results of
any new exploration well or development well is necessarily
indicative of long-term performance or ultimate recovery. Except as
may be required by applicable securities laws, Petrominerales assumes
no obligation to publicly update or revise any forward-looking
statements made herein or otherwise, whether as a result of new
information, future events or otherwise. 
Undiscovered Petroleum Initially-In-Place ("UPIIP"). UPIIP,
equivalent to undiscovered resources, are those quantities of
petroleum that are estimated, on a given date, to be contained in
accumulations yet to be discovered. The recoverable portion of UPIIP
is referred to as prospective resources, the remainder as
unrecoverable. Undiscovered resources carry discovery risk. There is
no certainty that any portion of these resources will be discovered.
If discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources. A recovery project
cannot be defined for this volume of UPIIP at this time. 
Discovered Petroleum Initially-In-Place ("DPIIP"). DPIIP, equivalent
to "discovered resources", is that quantity of oil that is estimated,
as of a given date, to be contained in kno
wn accumulations prior to
production. The recoverable portion of DPIIP includes production,
reserves, and contingent resources; the remainder is unrecoverable. A
recovery project cannot be defined for these volumes of DPIIP at this
time. There is no certainty that it will be commercially viable to
produce any portion of the resources.
Contacts:
Petrominerales Ltd.
Corey C. Ruttan
President and Chief Executive Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com 
Petrominerales Ltd.
Jack F. Scott
Chief Operating Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com 
Petrominerales Ltd.
Kelly D. Sledz
Chief Financial Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com
www.petrominerales.com