Porto Energy Corp. Announces Results from the ALC-1 Presalt Exploration Well
TORONTO, Nov. 1, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company")
(TSXV:PEC), a company focused on oil and gas exploration, appraisal and
development in Portugal, today announced results from the drilling of the
Alcobaça #1 ("ALC-1") Presalt exploration well in the Aljubarrota-3
concession, onshore Portugal. The well was drilled under a joint venture with
Petróleos de Portugal - Petrogal ("Galp") who carried Porto on 50% of the
total costs associated with the drilling of this well, estimated to be
approximately $10.7 million.
The Company spud the ALC-1 well at the end of August 2012. The ALC-1 well was
the Company's first Presalt well and reached a total measured depth of 3,240
meters. The well encountered a 300 metre gas column trapped below salt, but
did not find sufficient reservoir sands to be a commercial success. The
Company has begun efforts to plug and abandon the well and release the rig.
Porto and Galp are initiating technical discussions on the best path forward.
"The well penetratedapproximately 50 net meters of sandand sawgood
reservoir properties in several intervals,butmuchofthe sands were near
the base of the trapped gas column and as such were deemed non commercial,"
said Joseph Ash, President and CEO of Porto Energy. "Overall we drilled nearly
1,000 feet of hydrocarbon column. The salt sealing mechanism worked. The
pre-salt charge and migration was confirmed as the sands were found to be gas
bearing. Reservoir containment was also demonstrated since there was no
breach. Unfortunately, we discovered a much lower net to gross ratio on the
sands in this discovery. Regardless, this demonstrated to the partnership
that the play can work in the basin."
Porto will turn its near term focus to its Lias unconventional resource oil
play while Mohave and Galp evaluate other parts of the basin where the
pre-salt is potentially productive. The Porto Lias unconventional oil joint
venture with Sorgenia International B.V., Netherlands ("Sorgenia"), and
Rohöl-Aufsuchungs Aktiengesellschaft, Austria ("RAG"), concluded a 23 well
stratigraphic drilling program in the third quarter of 2012 to jointly
evaluate the unconventional resource potential of the Lower Jurassic (Lias)
stratigraphic interval within Porto's concessions in Portugal. While the cores
continue to show encouraging results, complete rock mechanics and geochemical
analysis is ongoing. Complete results are expected in the first quarter of
"We are very pleased with the results of our Lias work program and the extra
wells we drilled have allowed the partnership to collect more data to analyze
and interpret," said Joseph Ash. "We and our partners remain very optimistic
about what we are seeing in the data thus far."
About Porto Energy Corp.
PortoEnergy Corp. is an international oil and gas company engaged in the
exploration of crude oil and natural gas in Portugal, including the appraisal
of a gas discovery. Through its wholly owned subsidiary, Mohave Oil And Gas
Corporation (a Texas corporation with branch offices inPortugal), the
Company holds working interests in seven concessions in Portugal's Lusitanian
Basin totaling approximately 1.9 million net acres. Through its exploration
efforts to date, the Company has identified seven major exploration trends
over its concessions including unconventional oil and gas resource plays as
well as conventional oil and gas targets.PortoEnergy's shares trade on the
TSX Venture Exchange under the ticker symbol "PEC". For more information
onPortoEnergy visit: www.portoenergy.com.
This press release contains certain forward-looking statements. These
statements relate to future events or the Company's future performance. All
statements other than statements of historical fact are forward-looking
statements. The use of any of the words "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "should", "believe", "predict"
and "potential" and similar expressions are intended to identify
forward-looking statements. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements. No assurance can be given that these expectations will prove to be
correct and such forward-looking statements should not be unduly relied
upon. These forward-looking statements are made as of the date of this press
release and the Company does not undertake to update any forward-looking
statements that are contained in this press release, except in accordance with
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Heath Cleaver - Chief Financial Officer Phone: 1-713-975-1725
SOURCE: Porto Energy Corp.
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CO: Porto Energy Corp.
NI: OIL FIELD
-0- Nov/01/2012 20:52 GMT
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