PetroNova announces first quarter 2013 results

CALGARY, May 22, 2013 /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, 2013.

"During the first quarter of 2013, PetroNova continued its Llanos Basin drilling program and began preliminary work on our PUT-2 and Tinigua Blocks in order to initiate drilling this year," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "PetroNova completed the repair of existing roads to allow transportation of rig loads and awarded a civil contract for the first well in PUT-2, and initiated existing road improvements to access the Tinigua Block. In addition, the Company will continue to delineate successful wells and plan the drilling of additional wells in the Llanos Basin."

PetroNova's consolidated interim financial statements as at and for the three months ended March 31, 2013 and 2012, 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, 2013, the Company:  

• Produced 16,192 barrels (gross) of oil from extended production testing and 14,000 barrels were sold
• Drilled three wells in the Llanos Basin, resulting in one successful well (Pendare-2), one unsuccessful well (Guasco-1) and one well suspended for future evaluation (Cayabana-1)
• Drilled the Atarraya-4 delineation well which is currently in the completion phase
• Received Agencia Nacional de Hidrocarburos ("ANH") approval to extend the Phase 1 exploration period for PUT-2 to September 17, 2013
• Obtained an environmental license for the Canelo-Norte area in the PUT-2 Block
• Submitted an environmental management plan, and awarded a civil contract, for the first exploratory well in the PUT-2 Block
• Submitted additional information to the Environmental Licenses National Agency ("ANLA") to complete the analysis of the Tinigua Block's Environmental Impact Study
• Initiated existing road improvements in preparation for the first exploratory well in the Tinigua Block

Outlook:

PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur in the remainder of 2013:

• Drilling delineation wells at the Atarraya discovery
• Initiating a new 2D seismic campaign in CPO-07 Block
• Drilling a first exploratory well in the PUT-2 Block in Q3 2013
• Drilling a first exploratory well in the Tinigua Block in Q4 2013

In Colombia, extractive industries are experiencing delays in the process of acquiring drilling permits. While the Company continues to progress its exploration drilling program, part of this progress is dependent upon receipt of such government approvals or permits.

Summary Financial Information:

	Year ended	Three months ended March
(US$, except shares and data per share)	2012	2013	2012
Revenues	186,388	43,131	52,907
Net Loss	14,476,356	1,341,291	978,946
Loss per share	0.08	0.01	0.01
Weighted average shares	177,187,498	211,455,147	165,301,302
Working Capital	25,833,938	20,419,828	24,555,224
Cash and equivalents and short-term investments	34,638,532	28,695,901	27,784,209
Exploration and evaluation assets	58,441,392	63,180,871	48,503,463
Block deposits	5,176,340	5,129,566	5,026,888
Total assets	105,542,768	105,607,923	86,670,918
Shareholders' equity	94,748,646	93,847,088	81,408,947

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 Llanos 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, 2012 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.

Antonio Vincentelli
President & Chief Executive Officer  
954 317 3990
[email protected]  

Stelvio Di Cecco
Chief Financial Officer
954 317 3990
[email protected]

Abby Garfunkel
Investor Relations
403-218-2887
[email protected]