CALGARY, ALBERTA--(Marketwire - Oct. 6, 2010) - Quetzal Energy Ltd. (TSX VENTURE:QEI) ("Quetzal" or the "Company") is pleased to announce that the completion and testing of Canaguay-1, Llanos Basin Colombia, will begin shortly.
The Saxon #132 rig has been erected on the Canaguay - 1 well and is expected to begin operations shortly. Drilling operations commenced on June 3, 2010 and the well was successfully drilled to a final total depth ("TD") of 15,850 feet on August 4, 2010. Well logs indicate in excess of 100 feet of potential net oil pay in several oil zones including the Mirador, Barco, Gacheta and Une, with the Mirador zone containing the majority of the indicated oil pay. Completion and testing operations will begin with the Une / Lower Sandstone and testing of all potential zones is expected to take approximately 4 to 6 weeks. Quetzal is the operator and has a 25% working interest in the Canaguaro Block.
The processing of 220 square kilometers of 3-D seismic data on Block LLA-27 in the Llanos Basin of Colombia has been completed. It is expected that the interpretation and mapping of the LLA-27 3-D seismic will be completed in the fourth quarter of 2010. Quetzal is the operator of LLA-27 and has a 50% paying interest before payout, a 45.5% revenue interest before payout, and a 35% working interest after payout.
A pump has been installed on the Atzam #3A well and Quetzal will begin a production test of the current open perforations from 1194 feet to 1198 feet and from 1216 feet to 1218 feet. During initial perforation and testing of the above intervals the Atzam #3A flowed and swabbed at an average daily rate of approximately 20 barrels of 34 degree API oil per day and 60 barrels of formation water per day over a 9 day period. The installation of a pump is expected to increase total daily produced fluid. Production testing of the well is planned for the next several months to establish whether the current intervals are commercial. The completion and initial testing of the well was delayed due to numerous mechanical and logistical issues. Quetzal is the operator and has a 97% working interest in the Atzam #3 well.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (together, "forward-looking information"). The use of any of the words "expect", "anticipate", "continue", "estimate", "believe", "plans", "intends", "confident", "may", "objective", "ongoing", "will", "should", "project", "should" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information concerning the use of proceeds of the recently completed offering of units of the Corporation.
The forward-looking information is based on certain key expectations and assumptions made by Quetzal, including expectations and assumptions concerning the operational results in Colombia and Guatemala. Although Quetzal believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because Quetzal can give no assurance that they will prove to be correct.
Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the inherent risks involved in the exploration and development of oil and gas properties, the uncertainties involved in interpreting drilling results and other geological data, uncertainties relating to fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses and other factors including unforeseen delays. Anticipated exploration and development plans relating to Quetzal's properties are subject to change.
The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this press release is made as of the date hereof and Quetzal undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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