PMG report

[prince_jake_33]

Calgary, Canada – April 4, 2011 – Petrominerales Ltd. (“Petrominerales” or the “Company”) (TSX:PMG), is
pleased to provide an exploration and operational update.
Deep Llanos Basin (Corcel, Guatiquia and South Block 31)
As previously disclosed, we drilled and cased our Cardenal-1 exploration well as a potential oil producer. We
had initially performed two tests in the Lower Sand formation. The first test indicated the presence of tight
sand with low recovery of formation fluids. Although no net pay was calculated for this zone, it was tested due
to interesting shows encountered during drilling. The second interval in the Lower Sand formation was swab
tested initially, and then tested with an electric submersible pump (“ESP”) at rates of 650 bopd (32 degree API)
at less than 10% water cut. The third and final interval tested 310 bopd (28 degree API) from the Guadalupe
formation at 65% water cut with an ESP. Analysis of the production test and pressure build up data indicates
both hydraulic isolation and reservoir damage issues with this last test interval. We plan to continue to
produce the Guadalupe formation while we evaluate remedial workover options and a longer-term production
strategy for this well.
Guatin-1, located in the northeast part of the Corcel Block, has been drilled to a final measured depth of
13,402 feet. The well has been cased as a potential oil well and logs indicate 23 feet of potential net oil pay.
We expect to have test results from this well by the end of April. The next well in our Corcel exploration
program, Macapay-1, began drilling operations on March 25, 2011.
On our Guatiquia Block, we previously reported that we completed drilling the Candelilla-5 well to a total
measured depth of 12,170 feet. Following the installation of an ESP, the well has produced, since March 9,
2011, at an average of 2,450 bopd (20 degree API oil) at less than 1% watercut from the Guadalupe formation.
Following the Candelilla-5 completion, we commenced drilling operations on the Azalea-1 exploration well,
which is targeting a separate structure immediately southwest of our Candelilla discovery. The well is
expected to reach total depth in mid-April.
We have also completed the Candelilla-2 ESP replacement and are pleased to report that production from the
Lower Sand formation is now 6,000 bopd, compared to 4,000 bopd prior to the workover. The Candelilla-3
well was recompleted in the Guadalupe formation and swab tested at 160 bopd. We are evaluating
alternatives to enhance productivity in this well, given the rates we have seen from this zone in the Candelilla-
4 and 5 wells.
Central Llanos Blocks (Casimena, Castor, Casanare Este, Mapache)
On our Casimena Block, we recently completed testing the Lower Mirador formation in our Yenac-3 well using
an electrical submersible pump. The well is producing 13 degree API oil, at a rate of 750 bopd with a 74%
watercut. The successful testing of this zone is significant since it was not included in our reserves base at
December 31, 2010, even though we encountered and tested this zone earlier in the Yenac-1 and Yenac-2
wells. Yenac-3 was the third well drilled on our Yenac discovery and our initial plan is to drill up to five
additional follow up development locations.
On our Mapache block we have drilled the Disa-1 well to a total measured depth of 8,210 feet. Based on
hydrocarbon shows while drilling, we are casing the well as a potential oil producer. Test results are expected
by the end of April. Following Disa-1, the drilling rig is moving to the Capybara-2 location. In addition, the
Casanare Este 3D seismic survey, which began in early January, was recently completed and is being prepared
for processing.
Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este)
We have one drilling rig operating on our heavy oil acreage that recently completed drilling and casing the
Anturio-1 exploration well on our Rio Ariari Block. Well logs indicate 60 feet of potential net hydrocarbon pay
in the Mirador Formation. We have completed testing three intervals, the first two of which were wet.
Following remedial cement work on the third interval trace hydrocarbons were recovered to surface, however
there are indications that hydraulic isolation issues have compromised the results. Hydraulic isolation tests are
being performed which will be followed by either re-testing of this interval, or proceeding with the testing of
the remaining two intervals.
The Heliconia-1 well has been drilled to a total depth of 5,300 feet. Well logs indicate 15 feet of net pay in the
Mirador formation. A testing program is expected to begin after operations on Anturio-1 are finished. The
large 396 square kilometre 3D seismic program planned for the west half of Rio Ariari block covering our
recent drilling activity began on February 15, 2011 and will continue into the second quarter. Drilling
operations have commenced on the Acanto-1 well, which is testing multiple exploration concepts separate
from previous discoveries on our heavy oil acreage.
Production Update
Production averaged 41,963 bopd in the month of March, and 40,628 bopd for the first quarter of 2011. This
was up 7,485 bopd, or 23 percent, from the fourth quarter of 2010. The increase is mainly due to our Yatay
and Mantis successes in January, offset by our Candelilla-2 and 3 wells being offline for workovers along with
transportation limitations in the Llanos Basin.

[wturk]

Dan, would appreciate your thoughts....looks like market didn't like the update....thanks...bill

[dan_s]

What is not to like about a 7,485 bopd (22.6%) quarter-over-quarter increase in oil production. In a world where oil has gone up $25/bbl.

My forecast assumes 44,000 bopd for all of 2011. With strong well results during the first quarter it is clear to me they are on track.

I think PMG has a good shot at 80,000 bopd by the end of 2012.

Keep accumulating this one.