PetroSouth acquires interest in Carbonera block

PetroSouth Energy Corp., an energy exploration and production company focused on high-impact energy prospects in Colombia, South America, acquires a 6% working interest in the 64,000-acre Carbonera Exploration and Exploitation Contract, and participation in three future exploration wells.

The 6% working interest was acquired for US $420,000 and other considerations from Omega Energy’s exploration block located in Catatumbo Basin region of northeastern Colombia. The operator of the Carbonera Contract is Well Logging Ltda. Fulfillment of the first Phase contract commitments (Phase 1 re-entry of Cerro Gordo-1) was met prior to the Company acquiring the 6% working interest. Pursuant to the terms of the Contract the Company will participate with drilling one exploration well in each of Phase 2 (12 months – April 28, 2008), Phase 3 (12 months – April 29, 2009) and Phase 4 (12 months – April 28, 2010).

The Cerro Gordo-1 well was originally drilled and abandoned by Texaco in 1989. The well was re-initiated (re-entered) by Well Logging Ltda. in the southern part of the block in June 2007. It was proven productive after a one-week test. The Cerro Gordo-1 well flow tested a combination of gas and condensate at Gas: 4.0 MMCF/Day and Condensate: 60 BBL/Day.

The Carbonera Block encompasses 64,000 acres located northeast of Bogotá near the Venezuelan border in the Catatumbo Basin region of northern Colombia. The initial exploration well, Cerro Gordo-1 well, has tested combination of gas and condensate (Gas: 4.0 MMCF/Day and Condensate: 60 BBL/Day). The block hosts a probable reserve of 22 MMBLS.