Apco Oil and Gas International Inc. (NASDAQ:APAGF) today
announced that it has successfully completed its Llanos basin
exploration drilling program for 2014. Extended production tests
and development activities are underway.
In Llanos 32 where Apco participates with a 20 percent interest,
three exploration wells were drilled year-to-date. All three wells,
the Kananaskis-1, Carmentea-1 and the Calona-1, discovered proved
reserves. The Kananaskis-1 well was put on production from the
Mirador formation at an average rate of approximately 5,000 barrels
of oil per day during June. The Carmentea-1 tested at 4,300 barrels
of oil per day and was put on production at a restricted rate in
July. The Calona-1 well will be put on production later in the year
when water disposal facilities are installed.
Following the successful exploration drilling, Apco and its
partners began development and appraisal drilling. The Kananaskis-2
well was drilled to appraise the Une and Gacheta formations where
natural gas and natural gas liquids were produced in the
Kananaskis-1 test. Kananaskis-2 was drilled and cased, with testing
planned for third quarter. Since the end of the second quarter,
Apco drilled a water disposal well for Carmentea and the
Kananaskis-3 Mirador appraisal well, and spud the Kananaskis-4
disposal well.
Further production history and possibly more appraisal wells
will be required to determine stabilized flow rates and the extent
of all the reservoirs discovered by these wells, including
evaluation and potential development of natural gas and natural gas
liquids reserves lying below the oil reservoirs in the Une and
Gacheta formations. In addition, Apco expects that the total gross
production from Block 32 will be restricted to between 6,000 and
7,000 barrels of oil per day for the remainder of 2014 in order to
maximize long-term reservoir performance and until sufficient
production and water-handling facilities to support total fluid
volumes produced from the block are operational.
In the Llanos 40 block where Apco has a 50 percent working
interest, four exploration wells were drilled to fulfill the
initial exploration phase commitments. The first two wells, the
Celtis-1 and Ardisia-1, were drilled from the same pad and tested
during the second quarter. The Celtis-1 well discovered proved
reserves from the Une formation. The well is temporarily shut-in
until later in the year when water disposal facilities are
scheduled to be operational. The well is expected to be placed on
production at approximately 500 barrels of oil per day. The
Ardisia-1 well did not recover commercial hydrocarbon volumes and
is being converted to a water disposal well to handle water volumes
produced from the Celtis-1 well.
The third well drilled in the Llanos 40 block, the Begonia-1,
discovered oil from the Carbonera 7 formation. The fourth
exploration well, the Berbena-1, was determined to be unproductive
and is being converted to a water disposal well to handle
anticipated future volumes of water produced from the Begonia-1
well. Apco anticipates commencing long-term production testing of
the Begonia-1 well in the third quarter. The well is expected to
produce approximately 2,000 barrels of oil per day.
Following its recent acquisition of the previous operator of
Block 32, Parex Resources Inc. (TSX:PXT) is now the operator of
both the Llanos 32 and Llanos 40 blocks.
“We are very pleased to see success from our exploration
strategy in Colombia,” said Michael Kyle, Apco’s president and
chief operating officer.
“We expect these discoveries to deliver strong results and
provide meaningful increases to our production in the second half
of 2014 and beyond. With the intensive exploration program wrapping
up, our efforts have turned to development and evaluating the
resources discovered to date,” Kyle added.
About Apco Oil and Gas International Inc. (NASDAQ:
APAGF)
Apco Oil and Gas International Inc. is an international oil and
gas exploration and production company with interests in nine oil
and gas concessions and two exploration permits in Argentina, and
three exploration and production contracts in Colombia. More
information is available at www.apcooilandgas.com. Go to
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Our reports, filings, and other public announcements may contain
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exclusively relate to historical facts. Such statements are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
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"targets," "planned," "potential," "projects," "scheduled," "will"
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based on management's beliefs and assumptions and on information
currently available to management and include, among others,
statements regarding:
- Amounts and nature of future capital
expenditures;
- Volumes of future oil, natural gas, and
LPG production;
- Expansion and growth of our business
and operations;
- Financial condition and liquidity;
- Business strategy;
- Estimates of proved gas and oil
reserves;
- Reserve potential;
- Development drilling potential;
- Cash flow from operations or results of
operations;
- Seasonality of natural gas demand;
and
- Oil and natural gas prices and
demand.
Forward-looking statements are based on numerous assumptions,
uncertainties and risks that could cause future events or results
to be materially different from those stated or implied in this
announcement. Many of the factors that will determine these results
are beyond our ability to control or predict. Specific factors that
could cause actual results to differ from results contemplated by
the forward-looking statements include, among others, the
following:
- Availability of supplies (including the
uncertainties inherent in assessing, estimating, acquiring and
developing future oil and natural gas reserves), market demand,
volatility of prices, and the availability and cost of
capital;
- Inflation, interest rates, fluctuation
in foreign currency exchange rates, and general economic conditions
(including future disruptions and volatility in the global credit
markets and the impact of these events on our customers and
suppliers);
- The strength and financial resources of
our competitors;
- Development of alternative energy
sources;
- The impact of operational and
development hazards;
- Costs of, changes in, or the results of
laws, government regulations (including climate change regulation
and/or potential additional regulation of drilling and completion
of wells), environmental liabilities and litigation;
- Political conditions in Argentina,
Colombia and other parts of the world;
- The failure to renew participation in
hydrocarbon concessions granted by the Argentine government on
reasonable terms;
- Risks related to strategy and
financing, including restrictions stemming from our loan agreement
and the availability and cost of credit;
- Risks associated with future weather
conditions, volcanic activity and earthquakes;
- Acts of terrorism; and
- Additional risks described in our
filings with the Securities and Exchange Commission ("SEC").
Given the uncertainties and risk factors that could cause our
actual results to differ materially from those contained in any
forward-looking statement, we caution investors not to unduly rely
on our forward-looking statements. We disclaim any obligations to
and do not intend to update the above list or to announce publicly
the result of any revisions to any of the forward-looking
statements to reflect future events or developments.
In addition to causing our actual results to differ, the factors
listed above may cause our intentions to change from those
statements of intention set forth in this announcement. Such
changes in our intentions may also cause our results to differ. We
may change our intentions, at any time and without notice, based
upon changes in such factors, our assumptions, or otherwise.
Investors are urged to closely consider the disclosures and risk
factors in our most recent annual report on Form 10-K filed with
the SEC and our quarterly reports on Form 10-Q available from our
offices or from our website at www.apcooilandgas.com.
Apco Oil and Gas International Inc.Media Contact:Kelly
Swan, 539-573-4944orInvestor Contact:David Sullivan,
539-573-9360