CALGARY, May 25, 2012 /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 quarter ended March 31, 2012.
"PetroNova is steadily progressing through its 13 well exploration drilling program that has resulted in two separate hydrocarbon discoveries so far," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "We are eager to continue the program in CPO-7 and CPO-13; and then to PUT-2 and Tinigua, which account for the majority of PetroNova's prospective resources."
PetroNova's consolidated interim financial statements as at and for the quarters ended March 31, 2012 and 2011, together with the notes thereto, and the related management's discussion and analysis for the periods then ended, will be available under the Company's profile on SEDAR at www.sedar.com.
Since January 1, 2012, the Company has:
- Announced an oil discovery at the Atarraya 1 well in CPO-7, where the well flowed 23 API gravity oil at a natural flow rate of 830 barrels of oil per day during short testing, and is expected to be on extended test production during Q3 2012
- Announced an oil discovery at the Puerto Gaitan-1 well in CPO-6, where the well flowed 23.4 API gravity oil at a natural flow rate of 367 barrels of oil per day during short testing, obtained a permit to start a six-month extended test and is expected to be on extended test production by the end of Q2 2012
- Completed the Cusumbo-1 exploration well in CPO-6, which has been plugged and abandoned
- Completed the Camaleon-1 exploration well in CPO-6, which has been plugged and abandoned
- Completed a 200 km 2D seismic campaign covering the "El Tigre" indigenous community in CPO-13 and obtained an environmental license to commence drilling up to seven exploration wells in the Block
- Obtained an additional extension for phase 1 exploration period of the Tinigua block to June 2012
- Completed a geochemical study in the Tinigua Block
- Completed the acquisition of 109 km2 of 3D seismic data in the Tinigua Block
PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur in the remainder of 2012:
- Drill the five remaining exploration wells in the Llanos Blocks with extended testing of discoveries
- Initiate drilling in the PUT-2 Block upon receipt of the environmental license, which is anticipated to occur in Q3 2012
- Complete the processing and interpretation of 109 km2 of 3D seismic data in the Tinigua Block and submit an Environmental Impact Assessments "EIA" to drill exploratory wells in the eastern area of the block
- Initiate a new 2D seismic campaign to delineate unexplored areas of the Llanos Blocks and new 3D seismic campaign to characterize the discoveries
- Production from the two successful wells to date is estimated to be between 200 and 300 barrels of oil per day net to PetroNova, before royalties, and brought on by the end of Q3 2012
Summary Financial Information:
|Year ended||Three months ended March|
|(US$, except shares and data per share)||2011||2012||2011|
|Loss per share||(0.04)||(0.01)||(0.02)|
|Weighted average shares||165,301,302||165,301,302||165,301,302|
|Cash and equivalents and short-term investments||36,980,160||27,784,209||52,035,408|
|Exploration and evaluation assets||40,952,234||48,503,463||22,555,332|
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.
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, 2011 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.
For further information:
President & Chief Executive Officer
954 317 3990
Stelvio Di Cecco
Chief Financial Officer
954 317 3990