PetroNova announces third quarter 2011 results and provides operational update

CALGARY, Nov. 24, 2011 /CNW/ - PetroNova Inc. ("PetroNova" or the "Company") (TSX-V: 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 and nine months ended September 30, 2011.

"This quarter, PetroNova advanced our development programs on each of our five blocks and we remain on track to initiate drilling on our CPO-06 Block by the end of the year," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "We have a comprehensive drilling program for 2012, starting with the Llanos Blocks, and proceeding to the PUT-2 and Tinigua Blocks, respectively, once the necessary environmental licenses have been obtained and remaining seismic completed."

PetroNova's unaudited condensed interim consolidated financial statements as at and for the three and nine months ended September 30, 2011, together with the notes thereto, and the related management's discussion and analysis for the period then ended, will be available under the Company's profile on SEDAR at www.sedar.com.

Since July 1, 2011, the Company has:  

  • Received a National Instrument 51-101 compliant independent engineering evaluation of the prospective resources attributable to the Company's five oil and gas exploration and development blocks in Colombia (the "Resource Report"), effective June 30, 2011 and prepared by Petrotech Engineering Ltd. Based on the Resource Report, PetroNova's best-case net risked and unrisked prospective resources are 100.3 and 291.4 million barrels of oil, respectively.
  • Submitted an Environmental Impact Assessment (EIA) for the northeastern region of the PUT-2 Block for Ministry of Environment and Sustainable Development approval to drill twelve exploratory wells.
  • Completed the consultation process (known as "Consultas Previas") with the "Candilejas" indigenous community on the Tinigua Block. The final required agreement with this community was signed on October 12, 2011.
  • Initiated contractor mobilization to commence acquisition of 109 km2 of 3D seismic on the Tinigua Block.
  • Completed site construction at two CPO-06 well locations in the Llanos Basin.
  • Obtained an environmental license to drill up to five exploration wells in the CPO-07 Block in the Llanos Basin. The Company currently plans on drilling three exploration wells in the CPO-07 Block in the first quarter of 2012.
  • Completed the acquisition of 30 km2 of 3D seismic in the northern region of the Canelo Sur prospect in the PUT-2 Block.

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:

  • Initiate a three-well drilling campaign in the CPO-6 Block during Q4 2011.
  • Initiate a three-well drilling campaign in the CPO-07 Block in the first quarter of 2012.
  • Shoot the remaining 2D seismic on the CPO-13 Block, starting in the fourth quarter of 2011, and commence a three-well drilling campaign in 2012.
  • Obtain an environmental license to drill up to twelve exploration wells in the PUT-2 Block. The Company currently plans on drilling two exploration wells in the PUT-2 Block in the second quarter of 2012.
  • Complete the processing of 110 km2 of 3D seismic recently acquired in the PUT-2 Block.
  • Complete the 109 km2 3D seismic acquisition program on the Tinigua Block, with drilling of an exploratory well scheduled for the second half of 2012.

Summary Financial Information:

SELECTED FINANCIAL INFORMATION Year ended Three months ended September Nine months ended September
(US$, except shares and data per share) 2010 2011 2010 2011 2010
Revenues 168,418 99,175 56,032 257,842 144,832
Net loss (4,300,282) (1,379,449) (635,918) (5,639,305) (1,595,966)
Loss per share (0.07) (0.01) (0.01) (0.03) (0.04)
Working Capital 58,507,024 41,635,473 151,279 41,635,473 151,279
Cash and equivalents 60,710,250 43,710,654 1,044,379 43,710,654 1,044,379
Exploration expenditures 17,719,472 5,747,721 3,753,113 13,444,572 17,763,844
Block deposits 7,913,610 5,124,983 7,792,350 5,124,983 7,792,350
Total assets 91,350,206 86,452,411 29,340,984 86,452,411 29,340,984
Bank loans 940,031 - 455,770 - 455,770
Shareholders' equity 88,354,726 83,346,205 27,359,006 83,346,205 27,359,006
Shares outstanding (basic and diluted) 165,301,302 165,301,302 112,781,302 165,301,302 112,781,302

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 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 Venture Exchange under the stock symbol "PNA".

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.

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 Company'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, and statements pertaining to the receipt of an updated resource report. 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.

SOURCE PetroNova Inc.

For further information:

Antonio Vincentelli     Stelvio Di Cecco
President & Chief Executive Officer   Chief Financial Officer
954 317 3990      954 317 3990
antonio.vincentelli@petronova.com   stelvio.dicecco@petronova.com
 
Abby Garfunkel
Investor Relations
403-218-2887
agarfunkel@equicomgroup.com

Profil de l'entreprise

PetroNova Inc.

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