Seven Seas Announces Guaduas Oil Field Proved Reserve Decline

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Seven Seas Announces Guaduas Oil Field Proved Reserve Decline
    HOUSTON, July 24 /PRNewswire-FirstCall/ -- As part of the reassessment of
the Guaduas Oil Field, announced July 1, 2002, Seven Seas Petroleum Inc.
(Amex: SEV) stated today that the Company has initiated, with its independent
reservoir engineers, including Ryder Scott Company Petroleum Consultants, a
reevaluation of the Guaduas Oil Field's proved reserves.  Based on the latest
available field data the Company now believes that there will be a material
downward revision in the Company's published net proved reserves of
47.6 million barrels of oil as of December 31, 2001.
    The expected reserve reduction is based, in part, on lower production
rates, lower production pressures, and the occurrence of rapid gas
encroachment in structurally higher wells.  The late May 2002 commencement of
gas injection activities allowed resumed production from several significant
wells that had been previously shut-in or curtailed due to high gas-to-oil
ratios.  However, when the wells were opened for production or were no longer
curtailed, oil production rates did not increase as anticipated.  Production
from the Guaduas Oil Field has averaged approximately 6,700 gross (3,100 net
to Seven Seas) barrels of oil per day, month-to-date.
    The Company is continuing its efforts to optimize production from existing
wells through a workover program, which includes fracture treating certain
wells, reconfiguration of electrical submersible pumps, and the completion of
additional gas injection operations.  The Company is also studying the
geological and geophysical implications of these production data to determine
future development locations.  As previously stated, the impact of these
operations and studies may not be known for several months.
    At this time, neither the Company nor Ryder Scott Petroleum Consultants
are prepared to estimate the downward revision of net proved reserves or their
net present value.  Upon completion of the independent reevaluation, expected
by the end of August, the Company will announce revised net proved reserves,
their net present value, as well as the resulting production and cash flow
estimates.
    Seven Seas Petroleum Inc. is an independent oil and gas exploration and
production company operating in Colombia, South America.  The Company's
primary emphasis is on the development and production of the Guaduas Oil Field
and exploration of the Subthrust Dindal Prospect, both of which are located in
Colombia's prolific Magdalena Basin.
    Statements regarding anticipated oil and gas production and other oil and
gas operating activities, including the costs and timing of those activities,
are "forward looking statements" within the meaning of the Securities
Litigation Reform Act.  The statements involve risks that could significantly
impact Seven Seas Petroleum Inc.  These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services and government regulation and foreign political risks, as well as
other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.
SOURCE Seven Seas Petroleum Inc.
http://www.sevenseaspetro.com
Company News On-Call:
http://www.prnewswire.com/comp/123145.html
CONTACT:
Daniel Drum, Investor Relations of Seven Seas
Petroleum Inc., +1-713-622-8218