/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, July 25, 2014 /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, is pleased to announce that it has closed its previously announced non-brokered private placement of 28,571,428 million common shares of the Company ("Common Shares") at a purchase price of $0.28 per Common Share for total gross proceeds of $8 million (the "Private Placement").
"The proceeds of the Private Placement will enable PetroNova to delineate the highly prospective CPO-13 Block," said Antonio Vincentelli, President and CEO of PetroNova. "We plan to drill the first exploratory well in the El Tigre prospect - located in the heart of the heavy oil belt and on the border of the prolific Quifa SW development - in the second half of 2014, in addition to an appraisal well to delineate our Pendare discovery based on recently acquired 3D seismic."
The Common Shares have been subscribed by Alentar Holdings Inc., an international investment company with assets and solid experience in the oil and gas industry in Colombia and South America, and Inepetrol Investments Ltd., a company related to the original founders of the Company. A.V. Securities Inc. acted as finder for the Company's Private Placement and will be paid a cash fee of $285,000. The Common Shares shall be subject to a four (4) month statutory hold period from the closing of the Private Placement.
This news release contains "forward-looking information" within the meaning of applicable securities laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the use of proceeds of the Private Placement. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Corporation. Risk factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: general economic conditions, market risks relating to the oil and gas industry, the uncertainties involved in interpreting exploration results and other geological data and the ability of the Corporation to obtain the funds and resources required to carry out further exploration. The Corporation cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
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:
President & Chief Executive Officer
954 317 3990
Stelvio Di Cecco
Chief Financial Officer
954 317 3990