August 4, 2015
TORONTO, ONTARIO - August 4, 2015 - Sintana Energy Inc. (TSX-V: SNN) ("Sintana" or the "Company") is pleased to report the successful execution of drilling operations in the conventional formations encountered by the Manati Blanco-1 well, which is located on the western edge of the 43,158 acre Block VMM-37 in Colombia's Middle Magdalena Basin. Patriot Energy Sucursal Colombia ("Patriot"), wholly owned by the Company, has non-operated participation interests of 100% in the conventional and 30% in the unconventional formations of the VMM-37 Block.
The Manati Blanco-1 well has drilled through several hundred feet (gross) of porous, conventional channel sands in the Basal Tertiary formation. One sand section was discovered to have up to 90 feet net sand, with gas shows. Logs over these sands indicate high water saturation and a relatively high content of fine-grained material implying low permeability. Preparations to drill into several unconventional shale formations are currently in progress.
Sintana's CEO, Doug Manner, commented, "We are encouraged by initial drilling results to date. It is clear that we have a working hydrocarbon system. The primary targets for this well, and for the entire 67 square miles VMM-37 Block, are the unconventional shale formations. We look forward to updating you in the near future on drilling results for the Manati Blanco-1 well in this high potential impact exploration program."
Additional details of the VMM-37 drilling program will be announced as they become available.
On VMM-4, planning and permitting activities are ongoing for drilling two exploration wells on this 154,904 acres Block. The Company has a 15% participation interest in VMM-4 and will be carried in the initial two wells.
On Talora, three wells have been drilled on two prospects - Verdal and Dorados. Discussions are ongoing to farmout the next phase of a development program. Under a farmout, the Company would be carried for its proportionate share of the costs to reenter the Verdal-2 well and drill underbalanced laterally up to 5,000 feet through the naturally fractured Loma Gorda interval (La Luna equivalent) and conduct flow tests during drilling. The drilling of a twin to the Dorados-1 well would also be included in the carried period of a farmout. The Company has a 30% participation interest in this 34,194 acres Block.
ABOUT SINTANA ENERGY:
The Company is engaged in petroleum and natural gas exploration and development activities in Colombia's Magdalena Basin. Sintana's exploration strategy is to acquire, explore, develop and produce superior quality assets with significant reserve potential.
The Company's private participation interests, held by Patriot, in the 43,158 acres VMM-37 Block in the Middle Magdalena Basin are 100% of the conventional and 30% of the unconventional resource. Sintana has 15% carried participation interests in the conventional and unconventional formations of the 154,909 acres VMM-4 Block, also in the Middle Magdalena. In Colombia's Upper Magdalena Basin, Sintana has a private participation interest of 30% in the 34,194 acres Talora Block. These interests are subject to all applicable regulatory and government approvals, including those of the Agencia Nacional de Hidrocarburos (ANH).
On behalf of Sintana Energy Inc.,
"Douglas G. Manner"
Chief Executive Officer
For additional information or to sign-up to receive periodic updates about Sintana's Colombia projects, and ongoing corporate activities, please visit the Company's website at www.sintanaenergy.com
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "might", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information and/or statements. Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions of Sintana which have been used to develop such statements and/or information but which may prove to be incorrect. Although Sintana believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements as Sintana can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Sintana will continue to conduct its operations in a manner consistent with past operations; results from drilling activities; the accuracy of the estimates of resource volumes and interpretations of drilling activity results; availability of financing and/or cash flow to fund current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Sintana has participation interests; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Sintana to obtain qualified staff, equipment and/or services in a timely and cost efficient manner; the ability of the operator of each project in which Sintana has participation interests to operate in a safe, efficient and/or effective manner and to fulfill its respective obligations and current plans; future commodity prices; currency, exchange and/or interest rates; regulatory framework regarding royalties, taxes and/or environmental matters in the jurisdictions in which Sintana has participation interests; and the ability of Sintana to successfully market its oil and/or natural gas products. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation: risks associated with the uncertainty of exploration results and estimates, inaccurate estimation of Sintana's oil and/or natural gas resource volumes, currency fluctuations, the uncertainty of conducting operations under a foreign regime, exploration risk, the uncertainty of obtaining all applicable regulatory approvals, the availability of labour and/or equipment, the fluctuating prices of oil and/or natural gas, the availability of financing and the Company's dependence on Sintana's management personnel, other participants in the property areas and/or certain other risks detailed from time-to-time in Sintana's public disclosure documents, (including, without limitation, those risks identified in this news release and Sintana's current management's discussion and analysis). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.
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