Monday January 14, 9:00 am ET
HOUSTON--(BUSINESS WIRE)--PetroSouth Energy Corp. (the ?Company?) (OTC BB: PSEG.OB) a Houston based energy exploration and production company focused on high impact energy prospects in South America, is pleased to announce that it has been advised by the Operator that all major equipment has arrived and been set up for commencement of the re-entry on the Manantial-1R well bore, located in the Talora Block southwest of Bogot?span>, Colombia.
Drilling and work-over activities will commence as planned on or about January 15, 2008 and is expected to take approximately 15 days to reach final depth of 5,000 feet. Upon success an extended production test may then be conducted.
The Manantial-1 well was originally drilled and abandoned by Harken in 2001. At that time, drilling was intended to test the Hoyon unit, and reached total approximate depth of 2,360 feet. Subsequent re-interpretation of 2D seismic data suggests Harken did not reach the Hoyon unit. This re-entry?s main objective will be to test the Hoyon unit/ Formation sandstones and conglomerates to a greater depth.
The Talora Block
PetroSouth Energy has a 20% participation stake in the Talora Exploration and Exploitation Contract. The operator and majority partner is Petroleum Equipment International at 60%, with Grand Tierra Energy Inc. holding the remaining 20% working interest. Talora contract has a 6-year exploration period and 24-year production period.
The Talora Block lies just southwest of Bogot?span>, Colombia. The 108,333-acre contiguous parcel of land contains six prospects with combined potential reserves of 209 million barrels of oil (MMBO), (Source: Petroleum Equipment International, 2005).
Nearby Producing Fields
Several fields in close proximity to the Talora Block are active oil producers.
Brazil?s state-owned Petrobras has operated the Guando field just southeast of the Talora Block since November 2002. By December 2005, 70 producing wells had been drilled in the field, (Source: Society of Petroleum Engineers, 2006), which has total recoverable reserves of approximately 117 million barrels, and is currently yielding 33,000 barrels of oil per day (BOPD), (Source: Petrobras website).
Further south, one of PetroSouth's Talora Block partners recently completed six successful drill stem tests, establishing the presence of a significant oil accumulation with combined production flow rate of up to 5,906 barrels of oil per day (~$354,000 USD @ $60/barrel).
Fred B. Zaziski, Chairman of PetroSouth Energy, states: ?Rehabilitation and work-over of the Manantial-1R well is the first of six targets to be tested on the Talora Block and we look forward to providing additional information on developments that could contribute to higher production and cash flow for our shareholders.?
Further Information
Shareholders and prospective investors are encouraged to visit PetroSouth Energy?s website: www.petrosouthcorp.com and download PetroSouth Energy?s Investor Summary. Please feel free to call investor relations toll-free at 1-888-977-6884 to receive a full corporate investor's package.
About PetroSouth Energy Corp
PetroSouth Energy Corp. is a publicly traded independent oil and gas exploration company with headquarters in Houston, Texas and an operation base in Bogot?span>, Colombia. PetroSouth Energy aims to secure and develop a portfolio of oil and gas properties in Colombia, South America. The Company is involved in over 197,333 acres of prime oil and gas land holdings. PetroSouth Energy trades on the NASD OTC BB under the ticker symbol: PSEG - "PetroSouth Energy ? High Impact Colombian Energy Exploration".
On behalf of the Board
Fred B. Zaziski, Chairman
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that PetroSouth Energy can identify and successfully negotiate leases for oil and gas properties in Colombia and that the Company can participate in the exploration of those properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
For Further Information, Contact:
RedChip Companies, Inc.
500 Winderley Place, Suite 100, Orlando, FL 32751, (800) 733-2447,
Fax: (407) 644-0758, info@redchip.com
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