TORONTO, ONTARIO — (Marketwire) — 10/24/11 — Quetzal Energy Ltd. (TSX VENTURE: QEI) (“Quetzal” or the “Company”) is pleased to announce that it has commenced drilling the Mani #1 well on the Llanos 27 Block in the Llanos Basin of Colombia on October 21, 2011. The well is being drilled with the Saxon 132 1,500 HP rig and has a planned total depth of 10,850 feet and drilling is expected to take 45 days. The well is programmed to test the hydrocarbon potential of the Mirador and Une formations with secondary targets being the Carbonera and Gacheta formations. Quetzal–s gross budget for drilling the well is US$10 million and the testing budget is US$4 million – US$5million. The Company is paying 50% of this amount to earn a participating interest of 45.275% before payout and 34.25% after payout. NCT EG Energy Group Colombia is the official operator of the block before the ANH and Quetzal is acting as operator on behalf of NCT under a private participation agreement.
Operational update:
Quetzal would also like to announce that the Canaguay #1 well was shut in on October 20, 2011 to conduct a down-hole clean out and to install a new submersible pump at a deeper well depth. The work-over and clean up is expected to take approximately 10 days. Total cost of the work-over is budgeted to be $1 million, of which Quetzal will pay 25%.
Cautionary Statements
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (together, “forward-looking information”). The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “believe”, “plans”, “intends”, “confident”, “may”, “objective”, “ongoing”, “will”, “should”, “project”, “should” and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information concerning the use of proceeds of the recently completed offering of units of the Corporation.
The forward-looking information are based on certain key expectations and assumptions made by Quetzal, including expectations and assumptions concerning the use proceeds of the Offering and operational results in Colombia and Guatemala. Although Quetzal believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because Quetzal can give no assurance that they will prove to be correct.
Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the inherent risks involved in the exploration and development of oil and gas properties, the uncertainties involved in interpreting drilling results and other geological data, uncertainties relating to fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses and other factors including unforeseen delays. Anticipated exploration and development plans relating to Quetzal–s properties are subject to change.
The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this press release is made as of the date hereof and Quetzal undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Contacts:
Quetzal Energy Ltd.
Ron MacMicken
Chief Executive Officer
(647) 476-7572