Reuters: PetroMagdalena halts production in Colombia

April 24, 2012 2:29 pm0 commentsViews: 1

(Reuters) – PetroMagdalena Energy Corp (PMD.V: Quote) said it halted production at some wells in Colombia’s Llanos basin due to road blocks in the area and suspended operations at a well in the Catatumbo basin where it faced a natural flow of water.

The oil and gas company, formerly known as Alange Energy Corp, expects about 3700 barrels of oil per day to be shut in because of the blockade at the Cubiro block.

Those blocking roads are neither its employees nor contractors, said PetroMagdalena, which has evacuated all non-essential operational personnel from the block.

PetroMagdalena, which has working interests in 19 properties in Colombia, has a 70 percent working interest in the Santa Cruz block in Catatumbo basin where it has suspended operations to allow for further geological studies.

The Santa Cruz-1X well is the first exploration well in the block.

Shares of PetroMagdalena closed at C$1.30 on Monday on the Toronto Venture Exchange.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)