CALGARY, May 22, 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,
today announced its operational and financial results for the
quarter ended March 31, 2014.
Antonio
Vincentelli, President and CEO of PetroNova, commented,
"PetroNova announced two important developments during the first
quarter: we entered into a strategic partnership with Pacific
Rubiales that enables us to explore and develop the Tinigua
prospect with minimum additional financial commitments until the
commercial phase. We also received the environmental license to
drill up to 20 exploratory wells on the Tinigua Block, which
PetroNova considers to be our highest-impact asset."
PetroNova's consolidated interim financial
statements as at and for the three months ended March 31, 2014 and 2013, 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, 2014, the
Company:
- Obtained environmental licenses for the Tinigua Block which
allows PetroNova to drill a maximum of 20 exploratory wells from
five different platforms.
- Entered into an agreement with a wholly owned subsidiary of
Pacific Rubiales Energy Corp. ("Pacific Rubiales") whereby
Pacific Rubiales acquired a 50 percent interest in the Tinigua
Block (for details, please refer to the Company's press release
dated February 28, 2014).
- Received an independent engineering evaluation prepared by
Petrotech Engineering Ltd. Effective December 31, 2013 evaluating the Company's
reserves. The evaluation shows a 74 percent increase in the
Company's net 2P (proved plus probable) reserves at December 31, 2013 compared to December 31, 2012 (for details, please refer to
the Company's press release dated April 24,
2014).
- Received approval from the Agencia Nacional de Hidrocarburos
(the "ANH") for an extension of the phase 2 exploration
program for the Tinigua Block to June 17,
2014. The Company is in the process of requesting an
additional extension.
- Completed road repairs to enable rig load transportation to the
Tinigua drilling site.
- Fulfilled the phase 1 obligation under its exploration and
production contract with the ANH by resuming and completing the
evaluation of the Canelo Sur-2 well. The well test was deemed
inconclusive and the well is currently suspended.
- Completed the acquisition of 3D seismic data at Pendare in
CPO-13. The processing and interpretation of the data is in
progress.
- Completed the acquisition of additional 2D seismic data in
CPO-7. The interpretation of the data is in progress.
- Produced 35,165 barrels (gross) of oil from its extended
production testing in CPO-7 and CPO-13 and sold 35,604
barrels.
Summary Financial Information:
|
Year ended
December |
Three months
ended March 31, |
(US$, except shares and data per
share) |
2013 |
2014 |
2013 |
Revenues |
165,583 |
28,871 |
43,131 |
Net Loss |
4,750,465 |
541,829 |
1,341,291 |
Loss per share |
0.02 |
0.00 |
0.01 |
Weighted average shares |
216,943,437 |
225,971,277 |
211,455,147 |
Working Capital |
4,623,746 |
11,664,611 |
20,419,828 |
Cash and equivalents and short-term
investments |
13,195,300 |
16,211,758 |
28,695,901 |
Exploration and evaluation assets |
79,398,125 |
75,831,820 |
63,180,871 |
Block deposits (short- and long-term) |
5,316,009 |
5,278,208 |
5,129,566 |
Total assets |
107,288,803 |
108,307,511 |
105,607,923 |
Shareholders' equity |
94,637,935 |
93,943,864 |
93,847,088 |
Outlook:
PetroNova is continuing with its scheduled
exploration plans and commitments and anticipates the following
activities to occur during the remainder of 2014:
- Continue the extended testing of discoveries on the Llanos
Blocks.
- Complete the 3D seismic campaign at Atarraya and Pendare on the
CPO-7 and CPO-13 Blocks, respectively.
- Appraise its Pendare and Atarraya discoveries.
- Drill two exploration wells at the El Tigre prospect in the
fourth quarter of 2014 to appraise the Quifa SW extension onto the
CPO-13 Block.
- Commence civil works to drill the first exploratory well on the
Tinigua Block.
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.
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.
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,
including the extended testing of discoveries on the Llanos Blocks;
the completion of the 3D seismic campaign at Atarraya and Pendare
on the CPO-7 and CPO-13 Blocks, respectively; the appraisal of the
Company's Pendare and Atarraya discoveries; the drilling of two
exploratory wells in the CPO-13 Block; and the commencement of
civil works to drill a first exploratory well on the Tinigua Block.
In addition, statements relating to "reserves" or "resources" are
by their nature forward-looking statements, as they involve the
implied assessment, based on certain estimates and assumptions that
the resources and reserves described can be profitably produced in
the future. The recovery and reserve estimates of PetroNova's
reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered. 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; 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 and uncertainties, including, but not
limited to: general economic, market and business conditions; risks
related to the exploration, development and production of oil and
natural gas; the results of the Company's exploration program;
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 Annual Information Form for the year
ended December 31, 2013 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.