Petrominerales Ltd. report that our Cobra-2 well is currently producing over 5,000 barrels of oil per day of 30 degree API oil at a two percent water cut.

The Cobra-2 well is located on our Corcel Block and was drilled to target by-passed pay in the Guadalupe formation encountered in the original discovery well. With the production additions from Cobra-2, total Company production is currently over 39,000 bopd.

On Block 31, we recently logged our Jamuco-1 exploration well. Well logs indicate 52 feet of potential net oil pay in the Guadalupe, Lower Sand 1 and 2 formations. Based on log interpretation and the geological description of hydrocarbon shows encountered during drilling operations, we are casing the well and plan to conduct a multi-zone test program. Following completion operations, we plan to mobilize the rig to Tente-1, the next exploration prospect on our Corcel Block.

In Peru, we are pleased to report that we commenced drilling operations on our first exploration well, La Colpa 2X. We are planning to drill the well to a total measured depth of approximately 9,500 feet and to conduct a comprehensive logging and testing program. We expect to have initial drilling results from this well in early February.

Tags: Petrominerales Ltd.