Petroamerica Announces 2014 Third Quarter Results Including the Suroco Acquistion
CALGARY, Nov. 25, 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 nine months ended September 30, 2014, and to 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 approximately $43.2 million with an operating netback of approximately $46 per barrel;
- Achieved average daily production of 6,009 barrels of oil equivalent per day ("boepd");
- Closed the quarter with over $63 million in cash and short term investments.
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.
- Spudded the Langur-1x well on the LLA-19 Block on November 4, 2014. Petroamerica will pay 100% of the cost on this well, up to $17 million, to earn a 50% Working Interest ('WI') in the block.
- Farmed out a 50% WI and operatorship in the exploration area of El Porton to Parex Resources Colombia Ltd. Sucursal ("Parex"), where Parex has agreed to pay 80% of costs associated with the upcoming Calatea-2 well (replacing the Crypto – 1 well on the same block, due to land access issues);
- Assumed a 50% WI in the LLA-10 block by first farming out a 44.5% WI to Parex and then acquiring an additional 5% WI directly from the previous operator on the block. In order to earn its 44.5% WI, Parex will pay 89% of the costs of the Garza Roja-1 well and act as the operator on the block;
- Succesfully bid for the Putumayo exploration block, PUT-31, in the 2014 Colombia Bid Round in a consortium with Gran Tierra Energy Inc. Petroamerica will hold a 35% WI in this block, with Gran Tierra Energy Inc. holding the remaining 65% WI and acting as operator on the block.
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) |
Q3 2014 |
Q2 2014 |
9 mos 2014 |
Q3 2013 |
||||||||
| Oil revenue – net of royalties |
$ |
43,150 |
$ |
47,825 |
$ |
142,677 |
$ |
54,794 |
||||
| Funds flow from operations |
$ |
1,048 |
$ |
18,222 |
$ |
45,897 |
$ |
35,322 |
||||
| Funds flow per share- basic |
$ |
0.00 |
$ |
0.03 |
$ |
0.07 |
$ |
0.06 |
||||
| Funds flow per share- diluted |
$ |
0.00 |
$ |
0.03 |
$ |
0.07 |
$ |
0.06 |
||||
| Income for period |
$ |
(7,947) |
$ |
6,431 |
$ |
16,096 |
$ |
18,164 |
||||
| Total comprehensive income (loss) |
$ |
(14,182) |
$ |
8,562 |
$ |
7,810 |
$ |
17,013 |
||||
| Income per share - basic |
$ |
(0.01) |
$ |
0.01 |
$ |
0.02 |
$ |
0.03 |
||||
| Income per share - diluted |
$ |
(0.01) |
$ |
0.01 |
$ |
0.02 |
$ |
0.03 |
||||
| Total assets |
$ |
361,906 |
$ |
232,336 |
$ |
361,906 |
$ |
216,644 |
||||
| Total cash and short-term investments |
$ |
63,221 |
$ |
101,325 |
$ |
63,221 |
$ |
64,864 |
||||
| Notes payable |
$ |
30,718 |
$ |
31,981 |
$ |
30,718 |
$ |
32,413 |
||||
| Shareholders' equity |
$ |
229,246 |
$ |
160,248 |
$ |
229,246 |
$ |
128,566 |
||||
| Exploration costs |
$ |
715 |
$ |
263 |
$ |
1,069 |
$ |
5,773 |
||||
| Capital expenditures |
$ |
9,564 |
$ |
6,257 |
$ |
27,137 |
$ |
17,635 |
||||
| Common shares outstanding |
871,750,851 |
601,061,593 |
871,750,851 |
582,808,260 |
||||||||
| Weighted average shares outstanding: |
||||||||||||
| Basic |
825,876,788 |
596,278,700 |
671,762,687 |
581,097,499 |
||||||||
| Diluted |
825,876,788 |
615,692,294 |
690,537,446 |
605,383,772 |
||||||||
| (in $000 US except share, per share or unless otherwise noted) |
Q3 2014 |
Q2 2014 |
9 mos 2014 |
Q3 2013 |
||||||||
| Average production - bopd |
6,009 |
6,513 |
6,334 |
5,951 |
||||||||
| Selling price $/bbl |
$ |
94.59 |
$ |
105.10 |
$ |
101.93 |
$ |
108.00 |
||||
| Royalty $/bbl |
$ |
(18.57) |
$ |
(23.96) |
$ |
(20.77) |
$ |
(9.90) |
||||
| Average transportation costs $/bbl |
$ |
(14.87) |
$ |
(17.26) |
$ |
(17.04) |
$ |
(18.69) |
||||
| Average production cost $/bbl |
$ |
(15.46) |
$ |
(5.00) |
$ |
(7.83) |
$ |
(1.84) |
||||
| Operating netback $/bbl |
$ |
45.69 |
$ |
58.88 |
$ |
56.29 |
$ |
77.57 |
||||
| Funds flow netback$/bbl |
$ |
1.90 |
$ |
30.75 |
$ |
26.54 |
$ |
64.51 |
||||
| Share trading |
||||||||||||
| High |
$ |
0.44 |
$ |
0.38 |
$ |
0.44 |
$ |
0.35 |
||||
| Low |
$ |
0.28 |
$ |
0.28 |
$ |
0.28 |
$ |
0.24 |
||||
| Close |
$ |
0.30 |
$ |
0.37 |
$ |
0.30 |
$ |
0.33 |
||||
| Trading volume |
171,755,000 |
86,907,900 |
319,860,000 |
59,394,000 |
||||||||
Third Quarter Financial Summary
For the three months ended September 30, 2014, the Company reported $43.2 million in revenue, net of royalties, from the sale of 567 thousand barrels of oil equivalent ("boe"). The realized sales price was $94.59 per boe generating an operating netback of approximately $46 per barrel.
For the third quarter of 2014, the Company's net loss was $7.9 million ($(0.01) per share diluted), a result of weaker production levels through the quarter and declining oil prices, offset by foreign exchange gains incurred due to the weakening of the Canadian dollar. The Company's capital expenditures for the third quarter were $9.6 million, all invested in Colombia. As at September 30, 2014, the Company held 23 million barrels of oil ("Mbbls") of oil in inventory.
Funds flow of $1.0 million for the quarter ended September 30, 2014 were down from from $18.2 million for the previous quarter. The third quarter funds flow results were primarily impacted by the following events:
- Production interruptions on the Suroriente Block from July 15, 2014 (the closing date of the acquisition) to September 22, 2014 due to community blockades. With the reduced production levels, a number of fixed operating costs are still required in order to keep the Suroriente fields operational. This, coupled with increased water handling costs on the Maracas field, helped to increase the Company's average production cost per barrel from $5/bbl in the second quarter of 2014 to over $15/bbl in the current quarter, with an estimated impact on funds flow of approximately $5 million;
- One time transactions costs of $7.8 million for the acquisition of Suroco, an increase of approximately $6.6 million over the prior quarter, with a corresponding reduction to comparative funds flow;
- Increased general and administration costs resulting from the intergration of a strong organization with in depth knowledge of the Colombian sedimentary basins into the Petroamerica operations. Overall, general and adminstative costs were approximately $1.6 million higher in the third quarter than in the second quarter of 2014. The Company is taking steps to review the current operations to ensure that any synergies and savings available from the combined operations are realised; and
- Lower realised oil prices as a result of the general world-wide decline in oil price. Realised prices in the current quarter were $94.59/bbl, an almost $11/bbl decrease from the second quarter of 2014, resulting in an estimated reduction in funds flow of approximately $5 million.
Most of these items are considered as 'one-time' events and are not expected to have a continuing effect on the future results of the Company. Additionally, constructive government and local community negotiations should address the social issues that resulted in the community blockades in the first place.
Arrangement Agreement
On July 15, 2014 the Company completed the plan of arrangement under the provisions of the Business Corporations Act (Alberta) among the Company, Suroco and the shareholders of Suroco (the "Arrangement") which was voted on and overwhelmingly approved by holders ("Suroco Shareholders") of common shares ("Suroco Shares") of Suroco at the reconvened Annual General and Special Meeting of Suroco Shareholders held on July 14, 2014 (the "Meeting").
With the completion of the Arrangement, the operations of Suroco were combined with the Company effective July 15, 2014.
Operations Update
Company Production: Company WI (before royalties) production for the third quarter averaged 6,009 boepd, exiting the quarter at 6,457 boepd. October production averaged 6,359 boepd, with 4,064 boepd coming from the Llanos Basin and 2,295 bopd from the Putumayo Basin. This compares with the September average production of 5,183 boepd; 4,293 from the Llanos basin, and 1,575 bopd from the Putumayo.
Los Ocarros Block (50% WI, non-operated): Two wells drilled, including the Las Maracas-15 infill well which encountered unswept oil pay in all three reservoirs (Mirador, Gacheta and Une) and is currently producing from the Mirador, and the Las Maracas-16 water disposal well. Additionally, an active workover program is underway to optimize the oil production from the field. Adding perforations in Las Maracas-2 ST1, and switching the producing intervals in Las Maracas-10 and 12 have improved oil field production. The successful recompletion in Las Maracas-10 resulted in approximately 1,500 bopd (gross) at low initial watercuts. The Las Maracas-8 well has also been converted to a water disposal well.
The exploration well, Zampona-1, was plugged and abandoned after encountering non-commercial oil pay.
LLA-19 (50% WI, non-operated – subject to earning and ANH approval): The exploration prospect Langur-1x was spud on November 4, 2014 to evaluate the Mirador, Gacheta and Une formations in a low-side fault closure and is expected to be drilled to a depth of approximately 13,800 feet.
Suroriente Block (15.8% WI, non-operated): Spudded the Quinde-3 appraisal in the Quinde East N-Sand discovery on November 17, 2014. The well is expected to be drilled to a total depth of 10,400 feet.
2014/2015 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 operations expected for the remainder of 2014 and early 2015 is outlined in the following table:
| Prospect/Well |
Activity Type |
Block |
Working |
Timing/Status |
||||
| Rumi discovery |
Long-Term Test |
El Eden |
40% |
Continuing |
||||
| La Casona-2 |
Long-Term Test |
El Eden |
40% |
Continuing |
||||
| Langur-1 |
Exploration |
LLA-19 |
50% |
Drilling |
||||
| Calatea-2 |
Exploration |
El Porton |
50% |
Q4 2014 |
||||
| Quinde – 3 wells |
Development |
Suroriente |
15.8% |
Q4 2014 |
||||
| Garza Roja-1 |
Exploration |
LLA-10 |
50% |
Q1 2015 |
Petroamerica expects to release its 2015 capital and production guidance in early January, 2015.
| PETROAMERICA OIL CORP. |
||||||||||
| Condensed Consolidated Interim Statements of Financial Position |
||||||||||
| (Unaudited) |
||||||||||
| As at |
As at |
|||||||||
| September 30, |
December 31, |
|||||||||
| (thousands of United States dollars) |
2014 |
2013 |
||||||||
| Assets |
||||||||||
| Current assets |
||||||||||
| Cash and cash equivalents |
$ |
53,221 |
$ |
63,737 |
||||||
| Short-term investments |
10,000 |
2,894 |
||||||||
| Trade and other receivables |
28,929 |
42,754 |
||||||||
| Prepayments and deposits |
1,223 |
508 |
||||||||
| Crude oil inventory |
1,100 |
348 |
||||||||
| 94,473 |
110,241 |
|||||||||
| Non-current assets |
||||||||||
| Restricted cash |
11,028 |
5,170 |
||||||||
| Property, plant and equipment |
214,524 |
72,889 |
||||||||
| Exploration and evaluation assets |
41,881 |
24,871 |
||||||||
| 267,433 |
102,930 |
|||||||||
| Total assets |
$ |
361,906 |
$ |
213,171 |
||||||
| Liabilities |
||||||||||
| Current liabilities |
||||||||||
| Current equity tax |
$ |
- |
$ |
377 |
||||||
| Current income tax |
12,950 |
19,546 |
||||||||
| Accounts payable and accrued liabilities |
29,305 |
15,400 |
||||||||
| Notes payable |
30,718 |
- |
||||||||
| 72,973 |
35,323 |
|||||||||
| Non-Current liabilities |
||||||||||
| Stock appreciation rights liability |
3,380 |
2,085 |
||||||||
| Notes payable |
- |
31,587 |
||||||||
| Deferred tax liability |
46,341 |
2,818 |
||||||||
| Decommissioning liabilities |
9,966 |
5,260 |
||||||||
| Total liabilities |
132,660 |
77,073 |
||||||||
| Shareholders' equity |
||||||||||
| Share capital |
223,895 |
138,936 |
||||||||
| Contributed surplus |
24,458 |
24,079 |
||||||||
| Translation reserve |
(9,458) |
(1,172) |
||||||||
| Deficit |
(9,649) |
(25,745) |
||||||||
| 229,246 |
136,098 |
|||||||||
| Total liabilities and shareholders' equity |
$ |
361,906 |
$ |
213,171 |
||||||
| PETROAMERICA OIL CORP. |
|||||||||||||
| Condensed Consolidated Interim Statements of Net Income and Comprehensive Income |
|||||||||||||
| (Unaudited) |
|||||||||||||
| Three months ended September 30 |
Nine months ended September 30 |
||||||||||||
| (thousands of United States dollars, except per share amounts) |
2014 |
2013 |
2014 |
2013 |
|||||||||
| Revenue |
|||||||||||||
| Oil revenue - net of royalties |
$ |
43,150 |
$ |
54,794 |
$ |
142,677 |
$ |
146,566 |
|||||
| 43,150 |
54,794 |
142,677 |
146,566 |
||||||||||
| Expenses |
|||||||||||||
| Production |
(8,777) |
(1,029) |
(13,769) |
(4,784) |
|||||||||
| Transportation |
(8,441) |
(10,439) |
(29,954) |
(26,617) |
|||||||||
| Purchased oil |
- |
- |
(1,625) |
(2,624) |
|||||||||
| Exploration and evaluation |
(715) |
(5,773) |
(1,069) |
(6,099) |
|||||||||
| Depletion and depreciation |
(10,938) |
(7,903) |
(29,888) |
(22,260) |
|||||||||
| General and administration |
(5,272) |
(2,474) |
(11,745) |
(7,045) |
|||||||||
| Transaction costs |
(7,818) |
- |
(9,047) |
- |
|||||||||
| Share-based payments |
(360) |
(226) |
(2,352) |
(711) |
|||||||||
| (42,321) |
(27,844) |
(99,449) |
(70,140) |
||||||||||
| Finance and other |
(1,744) |
(1,372) |
(4,245) |
(3,870) |
|||||||||
| Foreign exchange gain |
1,185 |
596 |
3,028 |
522 |
|||||||||
| (559) |
(776) |
(1,217) |
(3,348) |
||||||||||
| Income before income taxes |
270 |
26,174 |
42,011 |
73,078 |
|||||||||
| Current income tax expense |
(2,971) |
(3,735) |
(18,781) |
(17,625) |
|||||||||
| Deferred tax expense |
(5,246) |
(4,275) |
(7,134) |
(12,005) |
|||||||||
| Net (loss) income for the year |
(7,947) |
18,164 |
16,096 |
43,448 |
|||||||||
| Other comprehensive loss |
|||||||||||||
| Items that will be reclassified subsequently to income or (loss): |
|||||||||||||
| Reserve on translation of foreign operations |
(6,235) |
(1,151) |
(8,286) |
(161) |
|||||||||
| Total comprehensive (loss) income |
$ |
(14,182) |
$ |
17,013 |
$ |
7,810 |
$ |
43,287 |
|||||
| Basic income per share |
$ |
(0.01) |
$ |
0.03 |
$ |
0.02 |
$ |
0.07 |
|||||
| Diluted income per share |
$ |
(0.01) |
$ |
0.03 |
$ |
0.02 |
$ |
0.07 |
|||||
| Weighted average number of basic |
|||||||||||||
| common shares outstanding |
825,876,788 |
581,097,499 |
671,762,687 |
580,607,966 |
|||||||||
| Weighted average number of diluted |
|||||||||||||
| common shares outstanding |
825,876,788 |
605,383,772 |
690,537,446 |
605,623,000 |
|||||||||
| PETROAMERICA OIL CORP. |
|||||||||||||||
| Condensed Consolidated Interim Statements of Changes in Equity |
|||||||||||||||
| (Unaudited) |
|||||||||||||||
| (thousands of United States dollars) |
Share Capital |
Contributed |
Translation |
Retained |
Total equity |
||||||||||
| Balance at January 1, 2014 |
$ |
138,936 |
$ |
24,079 |
$ |
(1,172) |
$ |
(25,745) |
$ |
136,098 |
|||||
| Net income for the year |
- |
- |
- |
16,096 |
16,096 |
||||||||||
| Other comprehensive loss |
- |
- |
(8,286) |
- |
(8,286) |
||||||||||
| Total comprehensive (loss) income |
- |
- |
(8,286) |
16,096 |
7,810 |
||||||||||
| Issue of share capital |
79,300 |
- |
- |
- |
79,300 |
||||||||||
| Warrants exercised |
5,676 |
(472) |
- |
- |
5,204 |
||||||||||
| Stock options exercised |
172 |
(65) |
- |
- |
107 |
||||||||||
| Share-based payments |
- |
916 |
- |
- |
916 |
||||||||||
| Cancellation of shares |
(189) |
- |
- |
- |
(189) |
||||||||||
| Balance at September 30, 2014 |
$ |
223,895 |
$ |
24,458 |
$ |
(9,458) |
$ |
(9,649) |
$ |
229,246 |
|||||
| (thousands of United States dollars) |
Share Capital |
Contributed |
Translation |
Retained |
Total equity |
||||||||||
| Balance at January 1, 2013 |
$ |
136,417 |
$ |
23,630 |
$ |
3,348 |
$ |
(79,622) |
$ |
83,773 |
|||||
| Net income for the year |
- |
- |
- |
43,448 |
43,448 |
||||||||||
| Other comprehensive loss |
- |
- |
(161) |
- |
(161) |
||||||||||
| Total comprehensive (loss) income |
- |
- |
(161) |
43,448 |
43,287 |
||||||||||
| Warrants exercised |
881 |
(131) |
- |
- |
750 |
||||||||||
| Stock options exercised |
72 |
(27) |
- |
- |
45 |
||||||||||
| Share-based payments |
- |
711 |
- |
- |
711 |
||||||||||
| Balance at September 30, 2013 |
$ |
137,370 |
$ |
24,183 |
$ |
3,187 |
$ |
(36,174) |
$ |
128,566 |
|||||
| PETROAMERICA OIL CORP. |
|||||||||||||
| Condensed Consolidated Interim Statements of Cash Flows |
|||||||||||||
| (Unaudited) |
|||||||||||||
| Three months ended September 30 |
Nine months ended September 30 |
||||||||||||
| (thousands of United States dollars) |
2014 |
2013 |
2014 |
2013 |
|||||||||
| Operating activities |
|||||||||||||
| Net income for the year |
$ |
(7,947) |
$ |
18,164 |
$ |
16,096 |
$ |
43,448 |
|||||
| Items not involving cash: |
|||||||||||||
| Share-based payments |
360 |
226 |
2,352 |
711 |
|||||||||
| Depletion and depreciation |
10,938 |
7,903 |
29,888 |
22,260 |
|||||||||
| Unrealized foreign exchange gain |
(7,355) |
(993) |
(9,956) |
(1,980) |
|||||||||
| Deferred tax (recovery) expense |
5,246 |
4,275 |
7,134 |
12,005 |
|||||||||
| Accretion and amortization |
324 |
215 |
901 |
759 |
|||||||||
| Abandonment expenditures |
(518) |
- |
(518) |
- |
|||||||||
| Impairment of exploration and evaluation assets |
- |
5,532 |
- |
5,532 |
|||||||||
| 1,048 |
35,322 |
45,897 |
82,735 |
||||||||||
| Net changes in non-cash working capital |
4,734 |
(1,262) |
8,963 |
8,783 |
|||||||||
| Cash provided by operating activities |
5,782 |
34,060 |
54,860 |
91,518 |
|||||||||
| Investing activities |
|||||||||||||
| Short-term investments |
22,884 |
- |
(7,106) |
- |
|||||||||
| Exploration and evaluation expenditures |
(899) |
519 |
(2,974) |
(15,264) |
|||||||||
| Property, plant and equipment expenditures |
(6,810) |
(17,457) |
(21,141) |
(38,958) |
|||||||||
| Corporate acquisition, net of cash acquired |
(10,777) |
- |
(10,777) |
- |
|||||||||
| Cash provided (used in) investing activities |
4,398 |
(16,938) |
(41,998) |
(54,222) |
|||||||||
| Financing activities |
|||||||||||||
| Repayment of long-term debt |
(28,500) |
- |
(28,500) |
- |
|||||||||
| Stock options exercised |
72 |
- |
107 |
45 |
|||||||||
| Warrants exercised |
3,217 |
390 |
5,204 |
749 |
|||||||||
| Cancellation of shares |
(189) |
- |
(189) |
- |
|||||||||
| Cash (used in) provided by financing activities |
(25,400) |
390 |
(23,378) |
794 |
|||||||||
| (Decrease) increase in cash and cash equivalents during the period |
(15,220) |
17,512 |
(10,516) |
38,090 |
|||||||||
| Cash and cash equivalents, beginning of year |
68,441 |
47,352 |
63,737 |
26,774 |
|||||||||
| Cash and cash equivalents, end of year |
$ |
53,221 |
$ |
64,864 |
$ |
53,221 |
$ |
64,864 |
|||||
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: +57-1-744-0644, Tel Calgary, Canada: +1-403-237-8300, Email: [email protected], Web Page: www.PetroamericaOilCorp.com
Share this article