PetroMagdalena Energy Corp. provided an update on its ongoing exploration program at the Cubiro Block.

Luciano Biondi, Chief Executive Officer of the Company stated: "The Llanos exploration program is continuing to build our production and reserves, the latest discovery occurring at Cernicalo in the Cubiro Block where we now have Upper Guadalupe sands on production and potential in uphole in the C7 sands. With the growing success from our exploration program we can begin to look for growth opportunities that can be funded from our expanding cash flow."

Cernicalo Discovery At Cubiro

PetroMagdalena has discovered a new field with the Cernicalo-1 ST, a sidetrack of the Cernícalo 1 exploration well, which was drilled to explore the prospectivity of the Carbonera Formation, located on Polygon B of the Cubiro Block, where the Company holds a 70 percent working interest. The Cernicalo-1ST well was perforated in two Upper Guadalupe sands and it is currently being tested. In the last five hours, with an electro-submersible pump at 23 Hz, the Guadalupe Formation has produced an average of 530 bopd of 23.9 degrees API oil with 30 percent BS&W. This represents 371 bopd as PetroMagdalena's gross working interest share. The activities in the Cernicalo 1 ST also include testing the Carbonera C7.

The Cernicalo-1ST well was spudded on January 18, 2012, drilled to a final depth of 6,845 feet MD and logged on January 28, 2012. The top of the Carbonera C7 sand was found at a depth of 5,880 feet MD. Petrophysical data show 13 feet of net pay in C7, with porosity of 24% and hydrocarbon saturation of 50%; and 12 feet in Upper Guadalupe, with porosity of 28% and oil saturation of 50%. Based on seismic interpretations, the accumulation discovered by Cernicalo-1ST is a 1.5 km long structure, corresponding to the typical exploration play in the Llanos Basin. The structure is on trend with the Barranquero field to the north and Tijereto Sur-1X exploration well to the south.

Tags: PetroMagdalena Energy Inc.