PentaNova Energy Corp. Announces First Quarter 2018 Operating & Financial Results

VANCOUVER, May 23, 2018 /CNW/ - PentaNova Energy Corp. (the "Company") (TSXV: PNO) announces it has filed its financial and operating results for the three months ended March 31, 2018. All dollar values in this news release and the Company's financial disclosures are in United States dollars, unless otherwise stated. All production figures are measured in barrels of oil equivalent ("boe").

Financial Statements

Revenues for period were obtained from the working interest in the Llancanelo and Mariposa Assets, which represent 90 days of production during the period.

Highlights

Llancanelo

Operating	Three months ended March 31, 2018	Three months ended December 31, 2017
Gross production (100%) boe	111,024	113,885
Net working interest production boe	43,287	40,672
Average boe production per day (boe/d)	481	452

The Llancanelo net production recorded for Q1 2018 is for the 39% working interest held during this time period. Subsequent to the closing of the Roch acquisition on October 27, 2017, which included an additional 10% working interest in Llancanelo, the Company's Llancanelo net production increased to 39% working interest.

Financial ($U.S. dollars)	Three months ended March 31, 2018		Three months ended December 31, 2017
	Total	Per boe	Total	Per boe
Revenue	2,270,243	52.45	1,904,186	46.82
Royalties	(446,478)	(10.31)	(382,642)	(9.41)
Operating expenses	(1,400,808)	(32.36)	(1,209,798)	(29.75)
Net operating profit	422,957	9.78	311,745	7.66

Mariposa

The Company holds a net working interest in the Estancia La Mariposa block of 18%, entitling it to 18% of the oil, natural gas and condensate sales, while the operator carries 100% of the capital expenditures and field operating costs. The net revenue figures associated with the Mariposa Asset are presented net of any applicable royalties and certain operating costs of transportation, treatment and processing. Oil and natural gas production is sold on behalf of the Company, for which the Company receives proceeds from the operator, net of the aforementioned royalties and operating costs. The net revenue generated from this asset has not been included in any "per barrel" pricing herein. Mariposa revenue, net of royalties, of $351,606 and $351,312 were realized for the three months ended March 31, 2018 and December 31, 2017, respectively. These revenue amounts were derived from net sales of 14,550 boe and 14,668 boe during the respective periods.

Financial Results & Balances

• The Company had a working capital deficiency of $8.5 million as of March 31, 2018

($U.S. dollars)	Three months ended March 31, 2018	Three months ended December 31, 2017
Cash and cash equivalents	10,387,628	8,962,371
Working Capital	(8,497,830)	1,931,860
Exploration and Evaluation Assets	77,040,381	67,609,348
Property, Plants, and Equipment	3,671,361	4,283,111
Total Assets	100,252,972	98,596,379
Net Oil and Natural Gas Production, boe	59,497	61,910
Net Oil and Natural Gas Revenue	2,270,243	1,904,186
Net Revenue on Carried Working Interest*	351,606	351,313
Royalty Expense	446,478	382,642
Operating Expenses	1,400,808	1,209,798
Net Operating Profit	774,563	663,059
Net Loss	1,975,398	867,706
Net Loss per Share, basic & diluted	(0.01)	(0.00)

Note:
(1)	Represents net revenue results from the carried interest held by the Company in the Mariposa Asset.

Asset Rationalization Mandate Update

As previously announced on April 30, 2018, the Company is continuing to work on the reorganization of its asset base and addressing its near-term capital commitments.

Forward-Looking Information

Estimates of reserves and resources in this news release are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and that the reserves described can be profitably produced in the future.

This news release contains certain "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: estimates of recoverable reserves volumes and the future net revenues associated with those reserves; the rationalization of the asset portfolio of the Company; future acquisitions; cost reductions and head count and financial commitment reductions; possible financing alternatives, including a share consolidation; the Mandate; the goals of the board and management relating to the Mandate and the Company generally; and changes in the plans of the previous management team, including to plans in respect of the development of the Company's reserves. Statements regarding future production, capital expenditures and development plans are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks, regulatory changes and certain other known and unknown risks detailed from time to time in the Company's public disclosure documents, copies of which are available on the Company's SEDAR profile at www.sedar.com.

Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. The Company's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Any "financial outlook" contained in this news release, as such term is defined by applicable securities laws, is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE PentaNova Energy Corp.

PentaNova Energy Corp., Ralph Gillcrist, CEO & President; Chris Reid, CFO, Tel: [phone], E-mail: [email protected]