CALGARY, ALBERTA--(Marketwire - June 7, 2010) - Quetzal Energy Ltd. (TSX VENTURE:QEI) ("Quetzal" or the "Company") is pleased to announce that it has commenced drilling the Canaguay # 1 well on the Canaguaro Block in the Llanos Basin of Colombia on June 4, 2010. The well has a planned total depth of 16,000 feet and drilling is expected to take 75 days. The well is programmed to test the hydrocarbon potential of several reservoirs including the Carbonera, Mirador, Gacheta, and Une. The Company has a 25% working interest in the Canaguaro Block and is the operator.
The acquisition of 220 square kilometers of 3-D seismic data on Block LLA-27 in the Llanos Basin has been completed and the seismic data is currently in processing. It is expected that processing and interpretation of the LLA-27 3-D seismic will be completed in the third quarter of 2010. The seismic program on Block LLA-21 has been postponed till after the rainy season and is now expected to be completed by late 2010 to early 2011.
Quetzal continues to test the Atzam #3A well, with completion and testing activities currently suspended due to a recent tropical storm and volcanic activity in Guatemala which has seriously disrupted logistics in support of operations at the well. It is anticipated that the testing will be completed in June, 2010
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 are based on certain key expectations and assumptions made by Quetzal, including expectations and assumptions concerning the use proceeds of the Offering and 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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