-In addition, the Tilodiran number 3 well suffered downtime, but the Tilodiran number 3 is currently producing naturally at improved stable rates.

-Even with these outages, the Company continues to anticipate that revenue for the six months ended June 30 will be in excess of the prior year interim period.

-Lastly, operations to convert the existing Rio Verde number 2 well into water injection service for the Tilodiran field were slightly delayed while the workover rig was utilized for the Tilodiran number 2 workover.

- The Rio Verde number 2 project is now currently underway and is expected to be completed in July thereby reducing Llanos water disposal costs.

-This project is expected to reduce water disposal costs per barrel of water from approximately $5.00 to approximately $1.00 providing monthly savings of over $250,000 per month.

Copyright © 2012 Dow Jones Newswires