Petrominerales operations update - July 4

[dan_s]

2nd quarter production is slighly below my forecast. PMG should report about $1.00 EPS and over $2.00 CFPS in Q2. Higher realized oil prices will offset slightly less production. - Dan

BOGOTA, COLOMBIA--(Marketwire - July 4, 2011) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News) is pleased to provide the following exploration update.

Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia

On May 17, 2011, we began drilling operations on our Camoruco well located in the northeast portion of our Corcel Block. The well reached total measured depth of 12,960 feet on June 29, 2011. The well tested an areally extensive structural feature defined from 3D seismic, informally called the Upia Ridge, in a structurally high position updip from a previously drilled well. Although hydrocarbon shows were encountered during drilling operations no hydrocarbon pay was calculated from the well logs. While Camoruco has present day four way structural closure, the original seal has likely been breached, resulting in only residual hydrocarbons remaining in the potential reservoir units. The well will be cased for water disposal purposes. The drilling rig will move to the Socaco location on Block 31.

The two additional rigs operating in the area are drilling the Cobra prospect on the Corcel Block and the Babaco prospect on the adjacent Block 31. We expect to complete drilling these wells later in July, and have testing results in August.

Production Update

Production averaged 41,876 barrels of oil per day ("bopd") for the month of June, a six percent increase from May. In addition, production for the second quarter averaged 40,334 bopd, consistent with the first quarter of 2011.

Petrominerales Ltd. is an international oil and gas company operating in Latin America since 2002. Today, Petrominerales is the most active exploration company and the fourth largest oil producer in Colombia. Our high quality land base and multi-year inventory of exploration opportunities provides long-term growth potential for years to come.