Petrominerales announce Q1 operational results

submersible well pump Petrominerales Ltd., a 76.4% owned subsidiary of Petrobank Energy and Resources Ltd., is pleased to announce our first quarter 2008 operating results. Production averaged 8,635 bopd in the first quarter of 2008, a 323% increase from the first quarter of 2007. The large increase is due to our ongoing development drilling program at Orito and our major discovery at Corcel. Corcel production averaged 4,811 bopd in the quarter and we have started to install electric submersible pumps with capacities of 15,000 barrels of fluid per day in our Corcel-A1 and A2 wells. The pump installation was completed in our Corcel-A1 well, but we experienced electrical and mechanical problems and as a result, we are attempting to pull the pump from the hole to remediate the problem. We then plan to move to our Corcel-A3 well and convert it to an injector well to handle produced water from the field. The Corcel-A3 has been producing from the lower sand interval from 12,449 to 12,461 feet with average production of 230 bopd in the month of April. After the Corcel-A3 conversion, we will upgrade the electric submersible pump in Corcel-A2, also to a capacity of 15,000 barrels of fluid per day. The Nabors 816 rig is currently drilling the Corcel-A4 well at a depth of 11,530 feet with an expected total depth of 12,465 feet. This vertical well is being drilled on the crest of the structure which should allow us to access attic oil in the Guadalupe and Mirador zones and to fully evaluate the potential of the lower zones encountered in Corcel-A3, including the zone which is currently producing, in a significantly up-dip location. We are now moving the Caroil-12 rig to Corcel to drill the Corcel-C1 exploration well, which is expected to spud in mid-May. We have secured this world class drilling rig for the next 18 months to support our ongoing Corcel and Guatiquia exploration and development drilling programs. Following the Corcel-C1 well we plan to drill the Corcel-D1 location with this rig. Our production facilities at Corcel have now been upgraded to handle 70,000 barrels of fluid per day and we plan a further expansion to 120,000 barrels per day by year end. The permanent production facilities capable of initially handling 180,000 barrels of fluid per day are expected to be completed in early 2009.