Petroamerica announces 2014 second quarter results, a material increase in Suroco reserves and provides an operations and new business update

CALGARY, Aug. 19, 2014 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), a Canadian oil and gas company operating in Colombia, is pleased to announce the financial and operating results for the three and six months ended June 30, 2014, provide an update on the Suroco Energy Inc. ("Suroco") acquisition, operations and new business developments.

Copies of the Company's Management Discussion and Analysis and Financial Statements have been filed with the Canadian Securities Regulatory Authorities and can be viewed or downloaded at the Company's website at www.petroamericaoilcorp.com or at www.sedar.com. The financial results for all periods presented are in United States dollars unless otherwise indicated.

Quarterly highlights include:

• Generated revenue of over $47.8 million, after royalties, leading to positive funds flow from operation of $18.2 million ($0.03 per share) with an operating netback of approximately $59 per barrel;
• Achieved average daily production of 6,513 barrels of oil equivalent per day ("boepd");
• Closed the quarter with over $101 million in cash and short term investments, an increase of 52% from the close of 2013.

Other highlights:

• Closed the strategic corporate acquisition of Suroco in mid July 2014, thereby adding significant new acreage, reserves and production in the Putumayo basin of Colombia.
• Received 5.9 million barrels of proved plus probable reserves from a mid-year update by external reserves auditors GLJ, representing an 87% increase from the 2013 year-end allocation. These reserves have a net present value (before tax, discounted at 10%) of approximately $186.8 million.
• Signed a farmout agreement with Parex Resources Inc. ("Parex") for the exploration block LLA-10 where Parex will pay up to $2.5 million for civil works and 89% of the exploration well to earn a 44.5% working interest.
• Successfully bid for the Putumayo exploration block, PUT-31, in the 2014 Colombia Bid Round in a consortium with Gran Tierra Energy Inc ("Gran Tierra").  Petroamerica will hold a 35% working interest in this block.
• The Company continues to maintain a strong balance sheet with current cash balance of approximately $63 million after accounting for the Suroco acquisition costs.
• Petroamerica will participate in the drilling of up to six exploration wells in the second half of 2014; two targeting high impact low-side fault closures in the Llanos, two conventional Llanos foreland fault traps, and two N-Sand prospects in the Putumayo Basin.
• The Company will partner in approximately 8 development wells in the Quinde and Cohembi fields in the latter part of 2014 and the early part of 2015.

Financial and Operating Results

The following table presents the highlights of Petroamerica's financial and operating results.

(in $000 US except share, per share or unless otherwise noted)		Q2 2014			Q1 2014			6 mos 2014			Q2 2013
Oil revenue - net of royalties		$	47,825		$	51,702		$	99,527		$	46,104
Funds flow from operations		$	18,222		$	26,627		$	44,849		$	24,166
Funds flow per share- basic		$	0.03		$	0.04		$	0.08		$	0.04
Funds flow per share- diluted		$	0.03		$	0.04		$	0.07		$	$ 0.04
Income for period		$	6,431		$	17,612		$	24,043		$	11,172
Total comprehensive income (loss)		$	8,562		$	13,430		$	21,992		$	11,389
Income per share -  basic		$	0.01		$	0.03		$	0.04		$	0.02
Income per share -  diluted		$	0.01		$	0.03		$	0.04		$	0.02
Total assets		$	232,336		$	229,012		$	232,336		$	185,259
Total cash and short-term investments		$	101,325		$	103,484		$	101,325		$	47,352
Notes payable		$	31,981		$	30,638		$	31,981		$	31,482
Shareholders' equity		$	160,248		$	150,547		$	160,248		$	110,937
Exploration costs		$	263		$	91		$	354		$	-
Capital expenditures		$	6,257		$	11,316		$	17,573		$	25,130
Common shares outstanding			601,061,593			595,148,260			601,061,593			580,798,260
Weighted average shares outstanding:
Basic			596,278,700			593,538,038			594,915,940			580,782,473
Diluted			615,692,294			614,623,454			614,329,534			600,776,919
(in $000 US except share, per share or unless otherwise noted)			Q2 2014			Q1 2014			6 mos 2014			Q2 2013
Average production - bopd			6,513			6,478			6,497			5,046
Selling price $/bbl		$	105.10		$	105.76		$	105.43		$	99.25
Royalty $/bbl		$	(23.96)		$	(19.71)		$	(21.81)		$	(7.86)
Average transportation costs $/bbl		$	(17.26)		$	(18.88)		$	(18.07)		$	(15.97)
Average production cost $/bbl		$	(5.00)		$	(3.40)		$	(4.19)		$	(4.83)
Operating netback $/bbl		$	58.88		$	63.77		$	61.36		$	70.59
Funds flow netback$/bbl		$	30.75		$	45.67		$	38.14			52.62
Share trading
High		$	0.38		$	0.38		$	0.38		$	0.36
Low		$	0.28		$	0.28		$	0.28		$	0.21
Close		$	0.37		$	0.30		$	0.37		$	0.26
Trading volume			86,907,900			61,197,100			148,105,000			46,649,300

 

Second Quarter Financial Summary
For the three months ended June 30, 2014, the Company reported $47.8 million in revenue, net of royalties, from the sale of 589 thousand barrels of oil equivalent ("boe").  The realized sales price was $105.10 per boe generating an operating netback of approximately $59 per barrel.

For the second quarter of 2014, the Company's net income was $6.4 million ($0.01 per share diluted), a result of strong production levels through the quarter and continued strong oil prices, offset by foreign exchange losses incurred due to the strengthening of the Canadian dollar and additional income tax charges due to reduced overall exploration costs expensed compared to the prior period.  The Company's capital expenditures for the second quarter were $6.3 million, all invested in Colombia. These capital expenditures were funded from available cash-on-hand.  As at June 30, 2014, the Company held 17 Mbbls of oil in inventory.

Suroco Acquisition

On July 15, 2014 the Company announced that it had closed the previously announced plan of arrangement under the provisions of the Business Corporations Act (Alberta) between the Company, Suroco and the shareholders of Suroco (the "Arrangement").

Under the Arrangement, holders of common shares of Suroco ("Suroco Shares") were able to elect to receive one of the following for each Suroco Share held:

(i)		2.2161 common shares ("Petroamerica Shares") of the Company;
(ii)		1.6401 Petroamerica Shares and a cash payment of C$0.2079; or
(iii)		C$0.80 in cash.

Immediately on completion of the Arrangement, trading in Suroco Shares ceased and Petroamerica paid approximately $16 million dollars and issued 253,795,411 Petroamerica Shares to former holders of Suroco Shares. The Company currently has approximately 858 million basic shares outstanding, and, when all warrants and options are considered, over 1.1 billion shares on a fully diluted basis.

This strategic acquisition provides added scale and diversity to the Petroamerica portfolio, material exposure to an exciting new play in the Putumayo basin, and a production and reserves base that complements Petroamerica's with the ability to add significant future growth.

The Company is currently working towards merging the two sets of operations and anticipates issuing to the market place revised production guidance and capital spending profiles by mid September, 2014.

2014 Suroco Mid-Year Reserve Update

Petroamerica is further pleased to announce the results of the independent reserves report effective June 30, 2014 and dated August 8, 2014 for Suroco (which became a wholly-owned subsidiary of Petroamerica upon closing of the Arrangement).  Suroco's reserves were evaluated by GLJ Petroleum Consultants of Calgary, Alberta ("GLJ") in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and in accordance with the COGE (Canadian Oil and Gas Evaluation) Handbook (the "GLJ Report").

2014 Mid-Year Reserve Update Highlights

• Total proved reserves of approximately 3.1 million barrels of oil (Suroco company share before royalty), with a net present value (before tax and discounted at 10%) of approximately $93.1 million.
• Total proved plus probable reserves of approximately 5.9 million barrels of oil (Suroco company share before royalty), with a net present value (before tax and discounted at 10%) of approximately $186.8 million.
• Total proved, probable and possible reserves of approximately 10.0 million barrels of oil (company share before royalty), with a net present value (before tax and discounted at 10%) of $277.0 million.
• Booked reserves increased as follows:
• Suroco company gross proved reserves grew by 48% from year-end 2013 after accounting for first-half 2014 production;
• Suroco company gross proved plus probable reserves grew by 87% from year-end 2013 after accounting for first-half 2014 production;
• Suroco company gross proved plus probable plus possible reserves grew by 134% from year-end 2013 after accounting for first-half 2014 production.
• The majority of the booking increases are attributed to successful exploration and development drilling and production activity in the Quinde field of Suroriente and recognition of undeveloped reserve potential in that area.
• Suroco's proved plus probable reserve life index increases from 4.0 years to 5.4 years.

The following table summarizes Suroco's oil and gas reserves as at December 31, 2013 and June 30, 2014.

Reserves Summary (in Mboe)
Reserves Category	Dec. 31, 2013	June 30, 2014	Percentage Change
Total Proved	2,067	3,057	48%
Total Proved plus Probable	3,136	5,852	87%
Total Proved plus Probable plus Possible	4,258	9,966	134%
Note: Company working interest reserves, before royalty.

The following table presents a summary of the Company's net present values of future cash flows as of December 31, 2013 and June 30, 2014.

Reserves Net Present Value Summary (in millions)
	December 31, 2013		June 30, 2014
Reserves Category	Pre Tax	After Tax	Pre Tax	After Tax
Total Proved	$64.9	$50.2	$93.1	$69.5
Total Proved plus Probable	$89.1	$66.4	$186.8	$133.5
Total Proved plus Probable plus Possible	$115.5	$83.8	$277.0	$194.2
Note: Net present values discounted at 10%.

The price forecast used in the variable dollar economics is available on the GLJ website at www.gljpc.com.

Reserve Advisory
Possible reserves are those additional reserves that are less certain to be discovered than probable reserves.  There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

Business Development Activity

Increased LLA-10 Working Interest and Farmout: Petroamerica increased its private equity share in the Llanos-10 block from 50% to 89% at no additional cost by assuming Canacol Energy Ltd.'s 39% working interest. The Company subsequently farmed out half of its working interest (44.5%) to Parex. Pursuant to the terms of the farmout agreement, Parex will pay up to $2.5 million for civil Works and 89% of the dry-hole cost of one exploration well to earn 44.5% working interest and operatorship, subject to the regulatory approval of the Colombian National Hydrocarbons Agency ("ANH").

Colombia 2014 Bid Round Award: Petroamerica, as part of a bid consortium (including Gran Tierra 65% working interest and Operator, and Petroamerica 35% working interest), was the successful bidder in the 2014 Colombia Bid Round for the PUT-31 Block in the Putumayo basin. This block is interpreted to lie in the sweet spot of the N-Sand play fairway in the Putumayo, and its award is subject to final confirmation by the ANH.

Operations Update

Company Production: Daily production for the second quarter averaged 6,513 boepd exiting the quarter with daily production of 6,013 boepd. June production averaged 6,465 boepd (Company working interest) compared to average production of 6,579 boepd for the previous month.

Las Maracas Field (Non-operated, Los Ocarros Block, 50% Working Interest): The Las Maracas-15 infill well was drilled targeting the Mirador, Gacheta and Une reservoirs. The well encountered unswept oil pay in all three reservoirs and was completed as a Mirador producer with an average oil rate of around 1,650 bopd. The Las Maracas-16 water disposal well was also drilled and completed and is currently being used to inject produced water. The water treatment and injection plant capacity is being expanded to 75,000 barrels of water per day and is scheduled for completion by the end of October, 2014.

La Casona Field (Non-operated, El Eden Block, 40% Working Interest): The gas compression plant is currently being expanded to handle 4.5 million cubic feet per day of gas and is expected to be completed before the end of August. Once commissioned this will enable the La Casona-2 well to be placed on production from the Mirador.

Curiara-1 Long-term Test (Non-operated, El Porton Block, 25% Working Interest): The Curiara-1 well has been on extended well test since early April, 2014, and has produced more than 43,000 barrels of light 42 degree API oil and 245 million cubic feet of gas from the Mirador. The well has performed better than expected and is currently producing at rates of more than 500 bopd.

Suroriente Block (Non-operated, 15.8% Working Interest): The recently drilled Quinde-7 well was placed on production with an electro-submersible pump and after seeing initial rates of 4,400 bopd the well is now producing at a rate of more than 3,500 bopd.  However, what was considered to be a temporary stoppage in production at the Cohembi and Pinuna fields has turned into a longer than expected shut-in. More specifically, the production in these fields has been off line since July 13, 2014 due to a local community blockade. The operator and other operators in the surrounding area are working closely with both the local and national governments and local communities to resolve this situation.

2014 Drilling Program Update

Following the acquisition of Suroco, and including wells already scheduled by Petroamerica, a number of high impact exploration prospects will be drilled in the near-term. A summary of exploration, appraisal and development drilling expected for the remainder of 2014 is outlined in the following table:

Prospect/Well		Activity Type		Block	Working Interest	Timing/Status
Garza Roja-1		Exploration		LLA-10	44.5%	Q4 2014
Zampoña-1		Exploration		Los Ocarros	50%	Q4 2014
Crypto-1		Exploration		El Porton	50%	Q4 2014
Langur-1		Exploration		LLA-19	50%	Q3/Q4 2014
Trampa Mixta-1		Exploration		Alea 1848A	50%	Q4 2014/Q1 2015
Cohembi North-1		Exploration		Suroriente	15.8%	Q4 2014/Q1 2015
Quinde - 4 wells		Development		Suroriente	15.8%	Q3/Q4 2014
Cohembi - 4 wells		Development		Suroriente	15.8%	Q4 2014/Q1 2015

Petroamerica will participate in the drilling of up to six exploration wells in the second half of 2014; two targeting high impact low-side fault closures in the Llanos (Langur-1 and Garza Roja-1), two conventional Llanos foreland fault traps (Crypto-1 and Zampona-1), and two N-Sand prospects in the Putumayo Basin (Cohembi North-1 and Trampa Mixta-1). Additionally, the Company will partner in approximately 8 development wells in the Quinde and Cohembi fields in the latter part of 2014 and the early part of 2015.

Outlook

The new Petroamerica, since the acquisition of Suroco, holds interests in twelve exploration and production contracts in the Llanos and Putumayo Basins of Colombia, covering more than one million gross (over 500 thousand net) acres focused on high netback light and medium oil. This portfolio includes a substantial inventory of exploration prospects and leads that will be pursued to support future production and reserves growth for the Company.  Furthermore, the new Company will also have significant exposure to the prolific N-Sand play in the Putumayo Basin in addition to the current production operations, discoveries and exploration opportunities in the Llanos basin, enhancing the overall portfolio and diversifying the company's asset base.

The Company is currently merging the two sets of operations and anticipates releasing a revised production guidance and a combined capital spending program by mid-September, 2014. However, based on preliminary numbers, the Company expects to be able to fully fund internally its operations for the year through the combination of free cash flow and cash-on-hand.

The Company continues to pursue select new business opportunities that will enhance the existing portfolio and provide additional future growth in its two core areas.

PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
			As at			As at
			June 30,			December 31,
(thousands of United States dollars)			2014			2013
Assets
Current assets
	Cash and cash equivalents	$	68,441		$	63,737
	Short-term investments		32,884			2,894
	Trade and other receivables		26,198			42,754
	Prepayments and deposits		1,646			508
	Crude oil inventory		1,292			348
			130,461			110,241
Non-current assets
	Restricted cash		5,659			5,170
	Property, plant and equipment		69,270			72,889
	Exploration and evaluation assets		26,946			24,871
			101,875			102,930
Total assets		$	232,336		$	213,171
Liabilities
Current liabilities
	Current equity tax	$	202		$	377
	Current income tax		9,436			19,546
	Accounts payable and accrued liabilities		15,273			15,400
	Notes payable		31,981			-
			56,892			35,323
Non-Current  liabilities
	Stock appreciation rights liability		3,984			2,085
	Notes payable		-			31,587
	Deferred tax liability		4,705			2,818
	Decommissioning liabilities		6,507			5,260
Total liabilities			72,088			77,073
Shareholders' equity
	Share capital		141,326			138,936
	Contributed surplus		23,847			24,079
	Translation reserve		(3,223)			(1,172)
	Deficit		(1,702)			(25,745)
			160,248			136,098
Total liabilities and shareholders' equity		$	232,336		$	213,171

 

PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Net Income and Comprehensive Income
(Unaudited)

				Three months ended June 30				Six months ended June 30
(thousands of United States dollars, except per share amounts)				2014		2013		2014		2013
Revenue
		Oil revenue - net of royalties	$	47,825	$	46,104	$	99,527	$	91,772
				47,825		46,104		99,527		91,772
Expenses
		Production		(2,948)		(2,444)		(4,992)		(3,755)
		Transportation		(10,172)		(8,090)		(21,513)		(16,179)
		Purchased oil		-		(2,624)		(1,625)		(2,624)
		Exploration and evaluation		(263)		-		(354)		(325)
		Depletion and depreciation		(9,417)		(7,186)		(18,950)		(14,357)
		General and administration		(3,738)		(2,168)		(6,473)		(4,571)
		Transaction costs		(1,229)		-		(1,229)		-
		Share-based payments		(1,793)		(233)		(1,992)		(485)
				(29,560)		(22,745)		(57,128)		(42,296)
		Finance and other		(1,209)		(1,226)		(2,501)		(2,498)
		Foreign exchange gain (loss)		(3,849)		485		1,843		(74)
				(5,058)		(741)		(658)		(2,572)
Income before income taxes				13,207		22,618		41,741		46,904
Current income tax expense				(9,296)		(5,365)		(15,810)		(13,890)
Deferred tax recovery (expense)				2,520		(6,081)		(1,888)		(7,730)
Net income for the year				6,431		11,172		24,043		25,284
Other comprehensive (loss) income
Items that will be reclassified subsequently to income or (loss):
	Reserve on translation of foreign operations			2,131		217		(2,051)		990
Total comprehensive income			$	8,562	$	11,389	$	21,992	$	26,274
Basic income per share			$	0.01	$	0.02	$	0.04	$	0.04
Diluted income per share			$	0.01	$	0.02	$	0.04	$	0.04
Weighted average number of basic
common shares outstanding				596,278,700		580,782,473		594,915,940		580,357,760
Weighted average number of diluted
common shares outstanding				615,692,294		600,776,919		614,329,534		606,397,533

 

PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited)

(thousands of United States dollars)		Share Capital		Contributed surplus		Translation reserve		Retained earnings (Deficit)		Total  equity
Balance at January 1, 2014	$	138,936	$	24,079	$	(1,172)	$	(25,745)	$	136,098
Net income for the year		-		-		-		24,043		24,043
Other comprehensive loss		-		-		(2,051)		-		(2,051)
Total comprehensive income (loss)		-		-		(2,051)		24,043		21,992
Warrants exercised		2,333		(346)		-		-		1,987
Stock options exercised		57		(22)		-		-		35
Share-based payments		-		136		-		-		136
Balance at June 30, 2014	$	141,326	$	23,847	$	(3,223)	$	(1,702)	$	160,248
(thousands of United States dollars)		Share Capital		Contributed surplus		Translation reserve		Retained earnings (Deficit)		Total  equity
Balance at January 1, 2013	$	136,417	$	23,630	$	3,348	$	(79,622)	$	83,773
Net income for the year		-		-		-		25,284		25,284
Other comprehensive loss		-		-		990		-		990
Total comprehensive income		-		-		990		25,284		26,274
Warrants exercised		423		(64)		-		-		359
Stock options exercised		72		(27)		-		-		45
Share-based payments		-		485		-		-		485
Balance at June 30, 2013	$	136,912	$	24,024	$	4,338	$	(54,338)	$	110,936

 

PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited)

			Three months ended June 30				Six months ended June 30
(thousands of United States dollars)			2014		2013		2014		2013
Operating activities
Net income for the year		$	6,431	$	11,172	$	24,043	$	25,284
Items not involving cash:
	Share-based payments		1,793		233		1,992		485
	Depletion and depreciation		9,417		7,186		18,950		14,357
	Unrealized foreign exchange gain		2,807		(800)		(2,601)		(1,023)
	Deferred tax (recovery) expense		(2,520)		6,118		1,888		7,766
	Accretion and amortization		294		257		577		545
			18,222		24,166		44,849		47,414
	Net changes in non-cash working capital		(16,341)		(2,862)		4,229		10,045
Cash provided by operating activities			1,881		21,304		49,078		57,459
Investing activities
Short-term investments			(30,099)		-		(29,990)		-
Exploration and evaluation expenditures			(717)		(14,555)		(2,075)		(15,783)
Property, plant and equipment expenditures			(4,394)		(12,999)		(14,331)		(21,502)
Cash used in investing activities			(35,210)		(27,554)		(46,396)		(37,285)
Financing activities
Stock options exercised			35		7		35		45
Warrants exercised			1,036		1		1,987		359
Cash provided by financing activities			1,071		8		2,022		404
(Decrease) Increase in cash and cash equivalents during the period			(32,258)		(6,242)		4,704		20,578
Cash and cash equivalents, beginning of year			100,699		53,594		63,737		26,774
Cash and cash equivalents, end of year		$	68,441	$	47,352	$	68,441	$	47,352

 

Definitions of Reserve Categories:

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual quantities recovered will exceed the estimated proved reserves.

"Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater than or less than the sum of the estimated proved plus probable reserves.

"Possible' reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.

Forward Looking Statements:

This news release includes information that constitutes "forward-looking information" or "forward-looking statements". Statements relating to "reserves" or "resources" are deemed to be 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. More particularly, this news release contains statements concerning expectations regarding regulatory and partner approvals on the Company's development plan, drilling and operational opportunities and the timing associated therewith, test results and the timing thereof, anticipated reserve life of the combined Company's assets, potential future acquisitions and other statements, expectactions beliefs, goals, objectives, assumptions and information about possible future conditions, results of operations or performance, the use of available cash on hand in addition to the potential exploration and development opportunities and expectations regarding regulatory approval and the overall strategic direction of the Company.  The forward-looking statements contained in this document, including expectations and assumptions concerning the obtaining of the necessary regulatory approvals, including ANH approval, and the assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks.

A multitude of factors can cause actual events to differ significantly from any anticipated developments and although the Company believes that the expectations represented by such forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. Material risk factors include, but are not limited to: the inability to obtain regulatory approval, including ANH approval, for the transfer of participating interests and/or operatorship for the Company's properties, the risks of the oil and gas industry in general, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable shortages of equipment and/or labour, changes or fluctuations in production levels, the size of oil and natural gas reserves or resources; incorrect assessments of the value of acquisitions and exploration and development programs; geological, technical, drilling, production and processing problems; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and reliance on industry partners. 

Data obtained from the initial testing results at the referenced wells, which may include barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The test results disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.

Readers should also note that even if the drilling program as proposed by the Company is successful, there are many factors that could result in production levels being less than anticipated or targeted, including without limitation, greater than anticipated declines in existing production due to poor reservoir performance, mechanical failures or inability to access production facilities, among other factors.

Neither the Company nor any of its subsidiaries nor any of its officers, directors or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.

The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Use of "boe"

'boe' may be misleading if used in isolation.  Throughout this press release the calculation of barrels of oil equivalent ("boe") is at a conversion rate of 6,000 cubic feet ("cf") of natural gas for one barrel of oil and is based on an energy conversion method at the burner tip and does not represent a value equivalence at the wellhead.

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: Petroamerica Oil Corp.

Nelson Navarrete
President and CEO

Colin Wagner
CFO

Ralph Gillcrist
COO and Executive Vice President Exploration & Business Development

Tel Bogota, Colombia: [phone]
Tel Calgary, Canada: [phone]
Email: [email protected]

Web Page: www.PetroamericaOilCorp.com