PETRONOVA ANNOUNCES FIRST QUARTER 2011 RESULTS

CALGARY, May 30, 2011 /CNW/ - PetroNova Inc. ("PetroNova" or the "Company") (TSXV: PNA), a company engaged in the exploration and development of oil and natural gas resources in Colombia, today announced its operational and financial results for the three month period ended March 31, 2011. All amounts are in US dollars unless otherwise specified.

"PetroNova made noteworthy progress this quarter by using previously acquired seismic to identify new leads and prospects," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "Based on this work, and by shooting additional ongoing seismic, PetroNova has further characterized its assets in preparation for drilling later this year."

PetroNova's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2011, together with the notes thereto, and the related management's discussion and analysis for the period then ended, are available on the Company's profile at www.sedar.com.

Highlights for the quarter ending March 31, 2011:  

  • Completed the interpretation of 100 km 2D seismic acquired in the Putumayo 2 (PUT-2) block in 2010, as well as seismic lines exchanged with a neighboring block, resulting in the confirmation of the five original prospects, the identification of three new leads and the selection of six potential drilling locations.

  • Contracted approximately100 km2 of 3D seismic to optimize the drilling locations in the Canelo Sur and Nogal Prospects and surrounding areas and define additional drilling opportunities in the PUT-2 block.

  • Confirmed two prospects in the CPO-06 block. Environmental permits for the prospects are ongoing with plans to commence drilling during the third quarter of 2011.

  • Confirmed one prospect and identified one new prospect through the ongoing interpretation of the seismic acquired in the CPO-07 block.

  • Identified additional prospects and leads through the ongoing interpretation of the seismic acquired in the CPO-13 block.

Highlights subsequent to March 31, 2011:

  • Additional prospects and leads have been identified and mapped through the ongoing interpretation in the CPO-06, CPO-07 and CPO-13 blocks, currently accounting for a total of two, nine and four prospects and six, ten and eight leads, respectively.

Outlook:

PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur in the remainder of 2011 and 2012:

  • Complete a campaign of approximately 100 km2 of 3D seismic on the PUT-2 block to optimize the exploratory drilling locations and initiate the drilling of its first exploratory well on this block in the fourth quarter of 2011 with a second well scheduled for 2012.

  • Initiate the 109 km2 3D seismic program on the Tinigua block during July of 2011. Drilling of the first exploratory well on the Tinigua Block is scheduled for early 2012, with a second well to follow later that year.

  • Initiate a three well drilling campaign in the CPO-6 block in the third quarter of this year. The Company has already selected the first two prospects to be drilled.

  • Initiate a three well drilling campaign in the CPO-07 block in the third quarter of this year. Of the first three prospects to be drilled, two are related to the Caracara field's geological trend and is one related to the Ocelote and Quifa geological trends.

  • Shoot the remaining 2D seismic on block CPO-13 (in the "El Tigre" indigenous community), adjacent to the producing South-West Quifa area operated by Pacific Rubiales, and start a three well drilling campaign early next year.

Summary Financial Information:

SELECTED FINANCIAL INFORMATION Year ended Three months ended March
(US$, except shares and data per share) 2010 2011 2010
Revenues           168,418             81,655 44,400
Net Income (Loss) (4,300,282) (2,755,894) 280,751
Income (Loss) per share (0.07) (0.02) 280,75
Weighted average shares    59,460,003   165,301,302 1,000
       
Working Capital    58,507,024     50,110,297 (17,845,659)
Cash and equivalents     60,710,250     52,035,408             67,096
Exploration and evaluation assets    21,450,975     22,555,332        9,841,303
Block deposits      7,913,610    13,191,427        7,728,800
Total assets     91,350,206    89,578,291      19,276,550
Bank loans          940,031          513,700                       0
Shareholders' equity (Deficiency)    88,354,726     86,021,916 (234,564)

Annual and Special Meeting of Shareholders

PetroNova's Annual and Special Meeting of Shareholders will be held at the offices of Borden Ladner Gervais LLP, the Howard Boardroom, Centennial Place, East Tower, 1900, 520 - 3rd Avenue S.W., Calgary, Alberta T2P 0R3, at 3:00 p.m. (Calgary time) on Monday, June 13, 2011.

About PetroNova

The Company, through its subsidiaries, is engaged in the exploration for, and the acquisition and development of, oil and natural gas resources in South America, specifically in Colombia. The Company's assets currently include the Company's interests in the PUT-2 and the Tinigua blocks located in the Caguan-Putumayo Basin in Colombia, both of which are operated by the Company, and the non-operated CPO-06, CPO-07 and CPO-13 blocks located in the Llanos Basin in Colombia. The common shares of the company trade on the TSX Vesture Exchange under the stock symbol "PNA".

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking statements. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "intend", "plan", "continue", "estimate", "budget", "targeting", "project", "expect", "may", "will", "might", "should", "could", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements. Such statements represent the Corporation's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Management believes the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

In particular, this press release contains forward-looking statements pertaining to the Company's future exploration and development activities and the timing thereof, including the Company's seismic acquisition and drilling plans. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things: general economic, market and business conditions in Colombia and globally; future crude oil and natural gas prices; the continued availability of capital, undeveloped lands and skilled personnel; the ability to obtain equipment in a timely manner to carry out exploration and development activities; the regulatory framework governing royalties, taxes and environmental matters in Colombia and any other jurisdictions in which the Company may conduct its business in the future; the ability of the Company to obtain the necessary approvals, permits and licences to conduct its operations; future capital and exploration expenditures to be made by the Company; future sources of funding for the Company's exploration program; the geography of the areas in which the Company is exploring; and adequate weather and environmental conditions.

Actual results could differ materially from those anticipated in these forward-looking statements as a result of certain risk factors, including, but not limited to: general economic, market and business conditions; risks related to the exploration, development and production of oil and natural gas; risks inherent in the Company's international operations, including security and legal risks in Colombia; risks related to the timing of completion of the Company's projects; competition for, among other things, capital, the acquisition of resources and skilled personnel; actions by governmental authorities, including changes in government regulation and taxation; the failure of the Company to obtain the necessary approvals, permits and licences to conduct its operations; environmental risks and hazards; the availability of capital on acceptable terms; the failure of the Company or the holder of certain licenses or leases to meet specific requirements of such licenses or leases; adverse claims made in respect of the Company's properties or assets; failure to engage or retain key personnel; geological, technical, drilling and processing problems, including the availability of equipment and access to properties; failure by counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; and the other factors discussed under the heading "Risk Factors" in the Company's annual information form for the year ended December 31, 2010 and the Company's other continuous disclosure documents filed from time to time with applicable securities regulatory authorities in Canada and which may be accessed on the PetroNova's SEDAR profile at www.sedar.com.

Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements included in this press release are expressly qualified by this cautionary statement and are made as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

 

 

SOURCE PetroNova Inc.

For further information:

Antonio Vincentelli    
President & Chief Executive Officer  
954 317 3990     
antonio.vincentelli@petronova.com  
 
 
 
 
Stelvio Di Cecco
Chief Financial Officer
954 317 3990
stelvio.dicecco@petronova.com
     
David Feick
Investor Relations
403-218-2839
dfeick@equicomgroup.com
 
 
 
 
 
 

 

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PetroNova Inc.

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