Petroamerica Announces the Financial and Operating Results for Three Months Ended September 30, 2012 with Highlights on the Las Maracas Production Start Up
CALGARY, Nov. 27, 2012 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia, is pleased to announce the financial and operating results for the three and nine months ended September 30, 2012. Copies of the Company's Management Discussion and Analysis ("MD&A") and Financial Statements have been filed with the Canadian Securities Regulatory Authorities and can be viewed or downloaded at the Company's website at www.petroamericaoilcorp.com or at www.sedar.com.
Quarterly highlights include:
(all balances in Canadian dollars, unless otherwise noted)
- Commencement of production and oil sales from the Las Maracas-3 and Las Maracas-4 wells on the Los Ocarros Block. Combined, these wells have contributed a combined 76,000 barrels of production in the current quarter;
- Generated revenue of over $9 million, after royalties, leading to positive funds flow from operation of $3.4 million ($0.01 per share) with an operating net back of approximately US $73 per barrel;
- Achieved average daily production of 1,522 barrels of oil per day ("bopd"), exiting the quarter at daily production of 2,718 bopd;
- Spudding of the Las Maracas-5 well on the Las Ocarros Block on September 30, 2012, which flowed, under test, at over 3,700 bopd;
- Spudding of the La Casona-1 well on the El Eden Block on September 4, 2012, resulting in a light oil discovery.
The following table presents the highlights of Petroamerica's financial and operating results for the three and nine months ended September 30, 2012 and 2011.
Three Months Ended September 30 |
Nine Months Ended September 30 |
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(in $000 CDN except share and per share and per barrel amounts, and unless otherwise noted) |
2012 | 2011 | 2012 | 2011 | ||||||||
Oil revenue - net of royalties | $ | 9,197 | $ | 2,506 | $ | 15,459 | $ | 5,038 | ||||
Funds flow from operations | $ | 3,361 | $ | (1,740) | $ | 501 | $ | (14,207) | ||||
Funds flow per share | $ | 0.01 | $ | 0.00 | $ | 0.00 | $ | (0.03) | ||||
Loss for period | $ | (4,865) | $ | (9,755) | $ | (8,944) | $ | (28,867) | ||||
Total comprehensive income (loss) | $ | (7,799) | $ | (6,799) | $ | (11,575) | $ | (24,043) | ||||
Loss per share - Basic and Diluted | $ | (0.01) | $ | (0.02) | $ | (0.02) | $ | (0.06) | ||||
Total assets | $ | 118,898 | $ | 109,525 | $ | 118,898 | $ | 109,525 | ||||
Total cash | $ | 32,797 | $ | 2,556 | $ | 32,797 | $ | 2,556 | ||||
Notes payable | $ | 32,378 | $ | - | $ | 32,378 | $ | - | ||||
Shareholders' equity | $ | 76,667 | $ | 75,230 | $ | 76,667 | $ | 75,230 | ||||
Exploration costs | $ | 4,451 | $ | 8,717 | $ | 6,598 | $ | 22,124 | ||||
Capital expenditures | $ | 5,937 | $ | 14,818 | $ | 14,977 | $ | 19,999 | ||||
Common shares outstanding | 578,331,594 | 578,331,594 | 578,331,594 | 578,331,594 | ||||||||
Weighted average shares outstanding | ||||||||||||
Basic and Diluted | 578,331,594 | 578,331,594 | 578,331,594 | 504,460,973 | ||||||||
Average daily production - bbls | 1,522 | 601 | 769 | 453 | ||||||||
Selling price US$/bbl | $ | 106.38 | $ | 103.11 | $ | 107.72 | $ | 105.37 | ||||
Royalty US$/bbl | $ | 8.51 | $ | 8.25 | $ | 8.62 | $ | 8.43 | ||||
Operating cost US$/bbl | $ | 25.29 | $ | 25.06 | $ | 29.36 | $ | 28.03 | ||||
Operating netback US$/bbl | $ | 72.58 | $ | 69.81 | $ | 69.75 | $ | 68.90 | ||||
Funds flow netback/bbl | $ | 35.30 | $ | (58.97) | $ | 3.21 | $ | (255.99) | ||||
Share trading | ||||||||||||
High | $ | 0.22 | $ | 0.17 | $ | 0.22 | $ | 0.74 | ||||
Low | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 0.11 | ||||
Close | $ | 0.21 | $ | 0.12 | $ | 0.21 | $ | 0.12 | ||||
Trading volume | 52,396,100 | 64,201,400 | 191,982,300 | 369,473,000 |
Third Quarter Financial Summary
For the three months ended September 30, 2012, the Company reported $9,197,293 in oil revenue, net of royalties, from the sale of 95,214 barrels of oil. The realized sales price was US $106.38 per barrel generating an operating netback of approximately US $73 per barrel.
For the third quarter of 2012, the Company's net loss was $4,865,421 ($0.01 per share diluted), attributable to the write-off of assets related to the SSJN-5 block. The Company's capital expenditures for the second quarter were $5.9 million, all invested in Colombia. These capital expenditures were funded from available cash on hand. As at September 30, 2012, the Company held 70,962 barrels of oil in inventory.
Operations Update
Production from the Mirador formation on the Las Maracas-2 sidetrack discovery well began on April 23, and the well has remained on production since then. To date the well has produced over 124,000 barrels of oil. The well is currently producing over 1,100 bopd with a 1.6% watercut. On July 30, 2012 the Company announced that the Las Maracas-3 well, which began drilling on June 28, 2012, had successfully appraised the Mirador formation discovery made by the Las Maracas-2 sidetrack well, and discovered a new deeper oil pool in the Gacheta formation. The Las Maracas-3 well encountered 30 feet of net oil pay in the Mirador formation and 29 feet of net oil pay in the Gacheta formation, and produced 30O API oil under natural flow, from a 14 foot perforated section in the Gacheta reservoir at a stabilized rate of 1,491 bopd with a 1% water cut. The Las Maracas-4 well began drilling on July 30, 2012 and on August 16, 2012 the Company announced that the well had reached total depth of 12,522 feet measured depth with electrical logs indicating more than 65 feet of prospective oil pay in the Mirador and Gacheta formations. The Las Maracas-4 well was completed with a work over rig and from a 12 foot perforated section in the Gacheta reservoir produced, under natural flow, an average of 1,400 bopd of 30O API oil. Since then, the wells have been producing at a combined rate of approximately 2,600 bopd from the Mirador formation, in the case of the Las Maracas-2 well, and the Gacheta formation, from the Las Maracas-3 and 4 wells. Using the Tuscany 109 rig the Las Maracas-5 well was spud on September 30, 2012, and reached its total depth of 12,970 feet in the Une Formation. Oil saturated cores were recovered from the Mirador and Gacheta reservoir intervals and these cores are undergoing laboratory analysis. The well has been logged and cased and the wire-line log interpretation indicates more than 48 feet of net oil pay (true vertical depth ("TVD")) in the Mirador and Gacheta sands, including a new lower Gacheta sand with 15 feet of net oil pay (TVD). The middle Gacheta sand was flow tested and produced 30O API oil from a 6-foot perforated interval at maximum rate of 3,762 bopd under natural flow conditions, with a watercut of 0.1% at the end of the test. The well was tested over a 13 hour period and had to be choked back due to storage capacity limitations at the well site. The well will now be completed as a Gacheta producer. On November 21, 2012, the Las Maracas-6 well was spud using the Tuscany-109 rig. This well is primarily targeting production from the Mirador and Gacheta formations. The final development plan and total number of development wells to be drilled to develop this accumulation has yet to be determined, but it is expected that it will include a number of development wells to be drilled beginning in mid 2013, and will include the construction of production, storage and transportation facilities to support the field. This plan is expected to be completed and approved over the next few months. For the nine months ended September 30, 2012, the Company sold 155,988 barrels ("bbls") of oil and recognised over $15.4 million in revenue, net of royalties, from these sales.
For the nine month period ended September 30, 2012, the Balay-1 and Balay-2 wells, which have been on long-term production test since July 14, 2010 and June 24, 2011 respectively, have produced at an average combined gross rate of 174 bopd under electro-submersible pump. From the inception of the long-term production test these wells have produced a combined total of over 1.2 million barrels of oil. The Balay-3 well, which was completed early in January 2012, is expected to be converted to a water disposal well as part of the field development plan. The Balay-4 well began drilling on October 12, 2012 with a late December 2012 completion target, and the results of this well will determine the extent of field development drilling activity and facilities construction for 2013. For the nine months ended September 30, 2012, the Company sold 58,905 bbls of oil and recognised over $5.8 million in revenue, net of royalties, from these sales.
Exploration Update
On the El Eden Block, which has full 3D seismic coverage, the La Casona-1 well started drilling on September 4, 2012 and reached a total depth of 16,450 feet in the Une Formation using the Tuscany 119 rig. The well encountered hydrocarbon shows while drilling through the C7, Mirador, Gacheta and Une reservoirs. A petrophysical evaluation of LWD (logging-while-drilling) and cased-hole logs indicates a total of more than 80 feet (TVD) of potential net hydrocarbon pay in the well. The two primary reservoir objectives, the Mirador and Une, have interpreted gross hydrocarbon-bearing columns of up to 40 feet (TVD) and 77 feet (TVD), and potential net pay thicknesses of 30.5 feet (TVD) and 50 feet (TVD), respectively. The well was cased-off and the Une reservoir flow tested using the drilling rig for more than 33 hours with intervening shut-ins. During the last and most representative flow period of 8 hours and 30 minutes, the well produced under natural flow conditions light oil (35O API) at an average rate of approximately 1,200 bopd with 4.0 MMCFD of gas and a maximum oil rate of 1,288 bopd. The well head flowing pressure was 3,010 psi and the watercut at the end of the test was less than 0.8%. The well flow rate was restricted through a 20/64 inch choke due to gas flaring limitations. The drilling rig will be released and a workover rig will further assess the well's ultimate flow potential and test other reservoirs with identified hydrocarbon pay.
On July 30, 2012, the Company announced that as part of its portfolio rationalisation it had divested its 33.3% working interest in the SSJN-5 Block situated in the Lower Magdalena Basin. The Company transferred its entire working interest in this block to the block's operator at zero cost in return for the cancellation of a US $3.0 million letter of credit that the Company had issued to secure its financial obligations on the block. As a result of this transfer, the Company has no further interest, liabilities or obligations in respect of this block, and has written off any investment that it had carried in the financial statements.
Outlook
With the successful completion of the debt financing in April 2012 and the current production on both the Balay and Maracas fields, the Company now has the financial resources from a combination of cash on-hand and projected production revenues, to execute its exploration and development plans for the current year and into the next.
With the completion of the Las Maracas-5 well and the start of the Las Maracas-6 well the Company is in the process of developing the Las Maracas field. Development plans are currently being reviewed and approved with our partner on the block, and these will include the construction of production facilities for the field as well as the drilling of a number of development wells.
Subject to further testing and analysis of the La Casona-1 well by a workover rig, the Company is expecting to move forward with a complete testing and appraisal program on the La Casona discovery. This program will include the drilling of a number of appraisal wells to more fully delineate the field and to assess its overall production capability. The size and extent of the program has yet to be determined, but the Company will work closely with its partner on the block to ensure that the program is underway as soon as possible.
The Balay Field development plan has been sanctioned and the Company and its partners expect to develop the Balay Field, starting with the completion of Balay-4 well by the end of the year. As part of this plan, Balay-3 is expected to be converted to a water disposal well, and the construction of the permanent production facility is envisaged to take place in 2013.
The start of the Altillo Este-1 well on the CPO-1 Block has been delayed due to landowner issues and spud in the first quarter of 2013 is now expected. A high impact well, Curiara-1 on the El Porton Block, is expected to spud in the first quarter of 2013. The drilling of the Malavar-1 well on the LLA-10 Block is expected to occur in the second quarter of 2013 due to environmental permitting delays. All of the prospects to be drilled are situated in the Llanos Basin and have been de-risked with 3D seismic.
PETROAMERICA OIL CORP. Condensed Consolidated Statements of Financial Position (Unaudited - Expressed in Canadian dollars) |
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As at | As at | ||||||
September 30 | December 31 | ||||||
2012 | 2011 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 32,797,397 | $ | 19,294,554 | |||
Trade and other receivables | 10,779,914 | 7,242,516 | |||||
Prepayments and deposits | 224,098 | 417,837 | |||||
Crude oil inventory | 1,714,863 | 563,530 | |||||
45,516,272 | 27,518,437 | ||||||
Non-current assets | |||||||
Restricted cash | $ | 2,805,853 | $ | 7,926,079 | |||
Property, plant and equipment | 33,425,111 | 14,881,718 | |||||
Exploration and evaluation assets | 37,150,953 | 44,560,366 | |||||
73,381,917 | 67,368,163 | ||||||
Total assets | $ | 118,898,189 | $ | 94,886,600 | |||
Liabilities | |||||||
Current liabilities | |||||||
Current equity tax | $ | 420,891 | $ | 404,703 | |||
Accounts payable and accrued liabilities | 5,671,834 | 5,016,607 | |||||
6,092,726 | 5,421,310 | ||||||
Non-Current liabilities | |||||||
Deferred tax liabilities | $ | 2,601,828 | $ | 2,601,828 | |||
Decommissioning liabilities | 797,156 | 176,000 | |||||
Notes payable | 32,378,229 | - | |||||
Equity tax | 360,844 | 668,231 | |||||
Total liabilities | 42,230,783 | 8,867,369 | |||||
Shareholders' equity | |||||||
Share capital | $ | 140,483,641 | $ | 140,483,641 | |||
Contributed surplus | 23,392,201 | 21,168,550 | |||||
Reserves | (2,138,418) | 492,924 | |||||
Deficit | (85,070,017) | (76,125,884) | |||||
76,667,407 | 86,019,231 | ||||||
Total liabilities and shareholders' equity | $ | 118,898,189 | $ | 94,886,600 |
PETROAMERICA OIL CORP. Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited - Expressed in Canadian dollars) |
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Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
Revenue | ||||||||||||||
Oil revenue - net of royalties | $ | 9,197,293 | $ | 2,506,080 | $ | 15,458,989 | $ | 5,038,089 | ||||||
9,197,293 | 2,506,080 | 15,458,989 | 5,038,089 | |||||||||||
Expenses | ||||||||||||||
Production | (2,422,005) | (788,021) | (4,365,806) | (1,682,872) | ||||||||||
Exploration and evaluation | (4,450,636) | (8,716,762) | (6,598,376) | (22,123,943) | ||||||||||
Depreciation, depletion and amortization | (1,215,311) | (541,211) | (2,354,875) | (991,817) | ||||||||||
General and administration | (1,693,785) | (1,716,506) | (5,820,579) | (5,257,883) | ||||||||||
Share-based payments | (299,062) | (389,077) | (1,003,195) | (2,901,298) | ||||||||||
Equity tax and other | - | - | - | (1,422,650) | ||||||||||
(10,080,799) | (12,151,577) | (20,142,831) | (34,380,463) | |||||||||||
Interest income | 179,611 | 150,918 | 758,931 | 528,087 | ||||||||||
Interest and financing fees | (1,218,691) | (26,076) | (2,297,202) | (169,316) | ||||||||||
Foreign exchange (loss) gain | (755,285) | (234,246) | (318,239) | 192,867 | ||||||||||
Loss on disposal of investments | - | - | - | (1,674,352) | ||||||||||
Impairment of accounts receivable | (1,910,655) | - | (1,910,655) | - | ||||||||||
Accretion | (276,895) | - | (493,126) | - | ||||||||||
(3,981,915) | (109,404) | (4,260,291) | (1,122,714) | |||||||||||
Loss before income taxes | (4,865,421) | (9,754,901) | (8,944,133) | (30,465,088) | ||||||||||
Current income tax | - | - | - | - | ||||||||||
Deferred tax recovery | - | - | - | 1,597,854 | ||||||||||
Net loss for the period | (4,865,421) | (9,754,901) | (8,944,133) | (28,867,234) | ||||||||||
Other comprehensive (loss) income | ||||||||||||||
Reserve on translation of foreign operations | ||||||||||||||
and net investments in foreign operations | (2,933,732) | 2,956,396 | (2,631,342) | 3,539,773 | ||||||||||
Net change in fair value of available-for-sale investments | - | - | - | 1,284,150 | ||||||||||
Other comprehensive (loss) income | (2,933,732) | 2,956,396 | (2,631,342) | 4,823,923 | ||||||||||
Total comprehensive loss | $ | (7,799,153) | $ | (6,798,505) | $ | (11,575,475) | $ | (24,043,311) | ||||||
Basic and diluted loss per share | $ | (0.01) | $ | (0.02) | $ | (0.02) | $ | (0.06) | ||||||
Weighted average number of basic and diluted | ||||||||||||||
common shares outstanding | 578,331,594 | 578,331,594 | 578,331,594 | 504,460,973 |
PETROAMERICA OIL CORP. Condensed Consolidated Statements of Changes in Equity (Unaudited - Expressed in Canadian dollars) |
||||||||||||||||||
Share Capital |
Contributed surplus |
Fair value reserve |
Translation reserve |
Deficit | Total equity | |||||||||||||
Balance at January 1, 2012 | $ | 140,483,641 | $ | 21,168,550 | $ | - | $ | 492,924 | $ | (76,125,884) | $ | 86,019,231 | ||||||
Net loss for the period | - | - | - | - | (8,944,133) | (8,944,133) | ||||||||||||
Other comprehensive loss | - | - | - | (2,631,342) | - | (2,631,342) | ||||||||||||
Total comprehensive loss | - | - | - | (2,631,342) | (8,944,133) | (11,575,475) | ||||||||||||
Warrants | - | 1,289,572 | - | - | - | 1,289,572 | ||||||||||||
Warrant issue costs | - | (69,116) | - | - | - | (69,116) | ||||||||||||
Share-based payments | - | 1,003,195 | - | - | - | 1,003,195 | ||||||||||||
Balance at September 30, 2012 | $ | 140,483,641 | $ | 23,392,201 | $ | - | $ | (2,138,418) | $ | (85,070,017) | $ | 76,667,407 | ||||||
Share Capital |
Contributed surplus |
Fair value reserve |
Translation reserve |
Deficit | Total equity | |||||||||||||
Balance at January 1, 2011 | $ | 114,438,212 | $ | 13,141,128 | $ | (1,284,150) | $ | (1,922,966) | $ | (44,206,637) | $ | 80,165,587 | ||||||
Net loss for the period | - | - | - | - | (28,867,234) | (28,867,234) | ||||||||||||
Other comprehensive income | - | - | 1,284,150 | 3,539,773 | - | 4,823,923 | ||||||||||||
Total comprehensive income (loss) | - | - | 1,284,150 | 3,539,773 | (28,867,234) | (24,043,311) | ||||||||||||
Issue of share capital | 26,846,161 | 4,753,739 | - | - | - | 31,599,900 | ||||||||||||
Transaction costs | (1,499,349) | (284,390) | - | - | - | (1,783,739) | ||||||||||||
Share-based payments | 698,617 | 2,695,181 | - | - | - | 3,393,798 | ||||||||||||
Balance at September 30, 2011 | $ | 140,483,641 | $ | 20,305,658 | $ | - | $ | 1,616,807 | $ | (73,073,871) | $ | 89,332,235 |
PETROAMERICA OIL CORP. Condensed Consolidated Statements of Cash Flows (Unaudited - Expressed in Canadian dollars) |
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Three months ended September 30 | Nine months ended September 30 | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Operating activities | ||||||||||||
Net loss for the period | $ | (4,865,421) | $ | (9,754,901) | $ | (8,944,133) | $ | (28,867,234) | ||||
Items not involving cash: | ||||||||||||
Share-based payments | 299,062 | 389,077 | 1,003,195 | 2,901,298 | ||||||||
Depreciation, depletion and amortization | 1,215,311 | 541,211 | 2,354,875 | 991,817 | ||||||||
Loss on disposal of investments | - | - | - | 1,674,352 | ||||||||
Deferred tax recovery | - | - | - | (1,597,854) | ||||||||
Unrealized foreign exchange (gain) loss | (114,506) | 2,981,370 | (955,952) | 3,935,938 | ||||||||
Accretion | 276,895 | - | 493,126 | - | ||||||||
Impairment of exploration & evaluation assets | 4,638,866 | 4,103,655 | 4,638,866 | 6,754,375 | ||||||||
Impairment of accounts receivable | 1,910,655 | - | 1,910,655 | - | ||||||||
Net changes in non-cash working capital: | ||||||||||||
Changes in trade and other receivables | 231,704 | 5,601,555 | (6,847,921) | (4,369,911) | ||||||||
Changes in prepayments and deposits | 153,820 | (1,174,106) | 194,142 | 63,450 | ||||||||
Changes in crude oil inventory | 588,457 | 221,040 | (568,269) | 122,293 | ||||||||
Changes in accounts payable, accrued liabilities and equity tax | (3,779,206) | 5,552,724 | (3,765,993) | 3,658,967 | ||||||||
Cash used in operating activities | 555,637 | 8,461,625 | (10,487,409) | (14,732,509) | ||||||||
Investing activities | ||||||||||||
Exploration and evaluation expenditures | (3,481,038) | (9,339,435) | (8,689,116) | (14,478,487) | ||||||||
Property, plant and equipment expenditures | (2,455,855) | (5,478,689) | (6,287,582) | (5,520,813) | ||||||||
Interest received | 298,361 | 172,467 | 752,511 | 441,326 | ||||||||
Payment for assets relinquished | - | - | - | (6,800,000) | ||||||||
Restricted cash investments | 5,020,919 | - | 5,020,919 | 2,300,000 | ||||||||
Proceeds from marketable securities | - | - | - | 2,441,347 | ||||||||
Cash used in provided by investing activities | (617,613) | (14,645,657) | (9,203,268) | (21,616,627) | ||||||||
Financing activities | ||||||||||||
Issuance of equity, net of costs | - | - | - | 29,816,161 | ||||||||
Issuance of notes payable, net of costs | (50,061) | - | 33,193,519 | - | ||||||||
Proceeds on exercise of stock options | - | - | - | 492,500 | ||||||||
Cash (used in) provided by financing activities | (50,061) | - | 33,193,519 | 30,308,661 | ||||||||
Effect of foreign currency exchange rate changes on cash | (1,966) | 2,712 | - | 2,990 | ||||||||
Increase (decrease) in cash and cash equivalents during the period |
(114,002) | (6,181,320) | 13,502,843 | (6,037,485) | ||||||||
Cash and cash equivalents, beginning of period | 32,911,399 | 24,255,558 | 19,294,554 | 24,111,723 | ||||||||
Cash and cash equivalents, end of period | $ | 32,797,397 | $ | 18,074,238 | $ | 32,797,397 | $ | 18,074,238 | ||||
Interest paid | 1,014,521 | - | 1,808,321 | - | ||||||||
Income tax paid | - | - | - | - |
Forward Looking Statements:
This news release includes information that constitutes "forward-looking information" or "forward-looking statements". More particularly, this news release contains statements concerning expectations regarding the conversion of the Balay-3 well to a water disposal well, regulatory and partner approvals on the Company's development plan, drilling and operational opportunities, test results and the timing thereof, the use of proceeds of the recently completed financing in addition to the potential exploration and development opportunities and expectations regarding regulatory approval and the strategic direction of the Company. The forward-looking statements contained in this document, including expectations and assumptions concerning the obtaining of the necessary regulatory approvals, including ANH approval, and the assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated developments and although the Company believes that the expectations represented by such forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. Material risk factors include, but are not limited to: the inability to obtain regulatory approval, including ANH approval, for the transfer of participating interests and/or operatorship for the Company's properties, the risks of the oil and gas industry in general, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable shortages of equipment and/or labour; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and reliance on industry partners.
Data obtained from the initial testing results at the referenced wells, which may include barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The test results disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.
Neither the Company nor any of its subsidiaries nor any of its officers, directors or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so 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: Petroamerica Oil Corp.
Nelson Navarrete
President and CEO
Colin Wagner
CFO
Ralph Gillcrist
Executive Vice President Exploration & Business Development
Tel Bogota, Colombia: +57-1-744-0644
Tel Calgary, Canada: +1-403-237-8300
Email: [email protected]
Web Page: www.PetroamericaOilCorp.com
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