CALGARY, March 14, 2014 /CNW/ - PetroNova Inc. ("PetroNova" or the "Company") (TSXV: PNA), a company engaged in the exploration and development of oil and natural gas resources in Colombia, announces that it has temporarily suspended operations at the Canelo Sur-2 exploratory well (the "Well") pending resolution of a community-related dispute in the region.
The Well has reached the programmed total depth of 9,970 feet; however, a community-related issue has arisen that is preventing personnel and supplies from reaching the drilling site. The Company, along with the drilling contractor, are utilizing all available resources to maintain personnel safety and well security while working with community representatives and local authorities to identify and resolve the underlying motivation of the unrest, in order to be able to resume normal activities. Once operations recommence, a liner will be run in the Well in order to acquire cased-hole logs such that a decision can be made regarding testing operations which were initially planned for the Lower "U" Sand of the "Villeta" Formation.
The Well was drilled to evaluate multiple reservoir targets in the Villeta Formation with the principal targets being the Lower "U" and the "T" Sands. Well log data and mud-gas log data acquired indicate a gross reservoir thickness of approximately 45 feet with fair quality oil shows and natural fluorescence over the Lower "U" Sand and a gross reservoir thickness of approximately 69 feet with poor oil shows over the "T" Sand. The Villeta Upper "U" Sand, over which a full suite of well logs was acquired, indicates the zone to be wet. Due to adverse hole conditions, a porosity log was not acquired over both of the Lower "U" and "T" Sands, which has hampered the interpretation.
The Well is located in the PUT-2 Block (the "Block") in Colombia's Caguan-Putumayo Basin, a Block in which Suroco Energy Inc. ("Suroco") holds a 25% economic interest. Application has been made to the Agencia Nacional de Hidrocarburos of Colombia for its approval of the conversion of Suroco's 25% economic interest to a full 25% undivided working interest in the Block.
The Company will carefully monitor the situation and will provide an update on any material developments.
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.
Caution Regarding Forward-Looking Statements and Information:
Certain statements and information contained in this press release constitute forward-looking statements and information (collectively "forward-looking statements") within the meaning of applicable securities laws. 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.
In particular, this press release contains forward-looking statements pertaining to: the Company's future exploration and development activities and the timing thereof; the resolution of the community-related dispute; and the resumption of activities at the Well. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things: the ability of the Company to successfully resolve the community-related dispute in a timely manner; 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; the applicability of technologies for recovery and production of the Company's oil and natural gas resources and reserves; the recoverability of the Company's oil and gas resources and reserves; 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: the risks that the community-related dispute will not be resolved in a timely manner or at all and that community relations will further deteriorate and violence will escalate, all of which could have an adverse effect on the Well and the Company's business and operations in general; 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 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:
President & Chief Executive Officer
954 317 3990
Stelvio Di Cecco
Chief Financial Officer
954 317 3990