PetroKamchatka Plc (TSXV: PKP) Provides Financial Results for the Third Quarter Ended February 29, 2012, announces changes to board, provides a corporate update, and has requested a trading halt

ST. HELIER, Jersey, May 1, 2012 /CNW/ - PetroKamchatka Plc ("PetroKamchatka" or the "Corporation") a Jersey company, reports its unaudited consolidated financial results for the three and nine month period ended February 29, 2012. PetroKamchatka has filed its unaudited interim Condensed Consolidated Financial Statements for the period ended February 29, 2012 and related Management's Discussion and Analysis ("MD&A") on SEDAR at www.sedar.com and on its website at www.petrokamchatka.com.

Third Quarter Update

Certain selected financial information is set out below and should be read in conjunction with PetroKamchatka's unaudited interim Condensed Consolidated Financial Statements and MD&A for the three and nine month period ended February 29, 2012.  All amounts are in United States dollars ("USD"), unless otherwise indicated, except for common share amounts.

	Three months ended				Nine months Ended
		February 29, 2012		February 28, 2011		February 29, 2012		February 28, 2011
Net loss	$	3,561,143	$	18,750,228	$	7,953,189	$	21,266,070
Net comprehensive loss (income)	$	1,481,550	$	(202,351)	$	256,747	$	(199,848)
Total comprehensive loss	$	5,042,693	$	18,547,877	$	8,209,936	$	21,066,222
Net loss per share - basic and diluted	$	(0.01)	$	(0.04)	$	(0.02)	$	(0.04)
Cash provided by (used in) operations	$	(782,662)	$	(2,269,480)	$	(3,283,091)	$	(4,006,921)
Weighted average number of common shares outstanding		490,396,137		490,345,076		490,396,137		489,850,074
As at						February 29, 2012		May 31, 2011
Cash and cash equivalents					$	727,977	$	4,045,212
Working capital					$	2,001,139	$	1,991,870
Total assets					$	3,693,453	$	13,892,358
Total liabilities					$	1,717,281	$	2,333,080
Equity attributable to owners of the Corporation					$	4,163,637	$	13,520,151
Number of common shares outstanding						490,396,137		490,396,137

For the three and nine month period that ended February 29, 2012, the Corporation incurred a total comprehensive loss of $5,042,693 and $8,209,936 respectively, compared to $18,547,877 and $21,066,222 for the three and nine month period that ended February 28, 2011.  Included in these results is 'other comprehensive income' of $1,481,550 and $256,747 respectively for the three and nine months ended February 29, 2012.  For the comparable period ended February 28, 2011, the Corporation reported 'other comprehensive (income) loss' of $(202,351) and $(199,848) respectively.  Other comprehensive income or loss relates to revaluation gains or losses on property and equipment and foreign exchange differences on translation of foreign operations.  The Corporation carried on business in Jersey, Cyprus, Russia and Canada where its functional currencies have been determined as being: USD in Jersey and Cyprus; Russian roubles in Russia; and Canadian dollars in Canada.  The Corporation reported a net revaluation loss in the third quarter of $1,684,878 as the result of fair value adjustments to 'property and equipment' and its 'investment in a drilling rig that is available for sale.

In the three and nine months ended February 29, 2012, the Corporation reported 'equipment operating costs and other expense' of $310,047 and $300,864 respectively.  This is includes of a downward revision to projected wind-up costs of Russian joint venture companies. For the three and nine month periods ended February 28, 2011 'equipment operating costs and other expense' were $999,800 and $1,696,855.  The year-over-year decline is a result of the wind-up of joint venture operations in Russia.

General and administrative expenses in the three and nine months ended February 29, 2012 were $721,295 and $2,239,732 respectively compared to $484,284 and $1,622,265 in the three and nine months ended February 28, 2011.  The difference results from lower recoveries to the Corporation as Operator of joint ventures in Russia.  Recoveries netted in the expense were based on capital expenditures by joint ventures.  These expenditures were materially lower in the current reporting period than in the first nine months of fiscal 2011.

In the first nine months of fiscal 2012, depreciation expense was $1,631,262 compared to $671,628 in the first nine months of fiscal 2011.  For the third quarter of 2012 and 2011 depreciation was $685,829 and $223,876 respectively.  The Corporation recorded an impairment to the fair value of its 'Investment in a drilling rig available for sale' at February 29, 2012 of $2,559,050 of which $2,262,100 was charged to profit and loss.  The remainder of $296,950 reversed revaluation gains recorded in fiscal 2011.

The ability of the Corporation and its subsidiaries and affiliates to meet obligations as they fall due is dependent upon the immediate realization of its investments in the HighKelly drilling rig and its other equipment and materials located in Russia; or an injection of working capital.  The Corporation is presently engaged in negotiations and bid procedures regarding the sale of these assets and is in discussions regarding additional equity raises associated with alternative oil opportunities in Russia.  Without the investment in the HighKelly rig being monetized, the Corporation may be considered to be insolvent.  The Corporation continues its significant cost cutting measures and will continue to seek new opportunities that would benefit shareholders.

Changes to Board and Corporate Update

The Corporation announces that in conjunction with certain initiatives (as set forth below), Mr. Yoon Suck Nam, Mr. Adam Landes, and Mr. Teck Soon Kong have resigned from the Board of Directors, effectively immediately.  Mr. Nam served as the Chairman of the Board. Mr. Graeme Phipps has been appointed as the new Chairman of the Board. The Board of Directors express its utmost gratitude to Mr. Nam, Mr. Landes and Mr. Kong for their significant contributions to the Corporation over their years of service and wishes them ongoing success in their future endeavours.

The Corporation is pleased to announce that it is currently undertaking negotiations in respect of a potential farm-in opportunity in Russia. In that regard, the Board has appointed Mr. Maxim Sidorin and Mr. Vyacheslav Pershukov to the Board of Directors.

Maxim Sidorin

Mr. Sidorin brings extensive financial and Russian operational experience and expertise to the Corporation. He is the Chief Executive Officer of East Siberian Resources Ltd. ("ESR") of Tortola, British Virgin Islands. Prior to ESR he was involved numerous private equity transactions in various industries including oil and gas. Mr. Sidorin has been involved, as partner and director, in a number of asset transactions including the development and subsequent sale of oil and gas assets in the Komi region of Russia. His most recent transaction was the sale of assets in the Komi region of Western Russia to the Noble investment group, a Joint Venture group involving the China Investment Corporation. .

Vyacheslav Pershukov

Dr. Pershukov brings extensive technical expertise in Russia and abroad plus a very strong professional and government network. He is a non-executive director of ESR, appointed in 2011. He graduated from Moscow State University (Mechanical Mathematics) before becoming a Doctor of Engineering Sciences. He has had extensive experience with a number of Technical Institutions and Universities including Project Manager of Science and Technology, University of Calgary, Canada and has been a member of the Russian Academy of Natural Science since 1995. Dr. Pershukov currently acts as Deputy Director General and Head of Scientific and Technical Complex at ROSATOM (Russia's State Nuclear Power Authority). He served as Chief Technical Officer at West Siberian Resources Ltd. from 2005 until the merger with Alliance Oil Company in 2008. Following this, he headed Alltech' Group's oil and gas management division. Prior to these roles, Dr. Pershukov served as Executive Vice President of YUKOS E&P.

The appointment of Messrs. Sidorin and Pershukov is conditional upon TSXV review and clearance of such appointments. The Corporation has determined that, pending approval of the appointments by the TSX Venture Exchange and the completion of the negotiations surrounding the potential farm-in, it will request that trading in its stock be halted.

PetroKamchatka also wishes to announce that it has terminated its Letter of Intent with Advastor Services Ltd. ("Advastor") regarding the proposed merger announced by the Corporation on May 18, 2011. The Corporation and Advastor could not reach acceptable terms to proceed with the transaction.

About PetroKamchatka

PetroKamchatka is a company incorporated in the Bailiwick of Jersey and is publicly listed for trading on the TSXV.  Through its wholly-owned Cyprus subsidiary and that entity's Russian subsidiaries and affiliates, it carried out exploration in the Kamchatka Peninsula of the Russian Federation. To date, those efforts were unsuccessful.  As a result, PetroKamchatka is in transition.  It seeks to monetize its remaining investments while it seeks new opportunities subject to acceptance and support by capital markets.

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.

Advisory Regarding Forward-Looking Statements

This press release together with the interim financial statements and interim MD&A referred to therein contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements").  Forward-looking statements are based on the PetroKamchatka's current beliefs as well as assumptions made by, and information currently available to, PetroKamchatka concerning business prospects, strategies, regulatory developments, the ability to obtain equipment in a timely manner to carry out development activities, the ability to get oil to market, and the ability to obtain financing on acceptable terms  Although management of PetroKamchatka considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.  Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur.  There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized.  Actual results will differ, and the difference may be material and adverse to either PetroKamchatka and/or its security holders.  The forward-looking statements contained in this press release are made as of the date hereof and PetroKamchatka does not undertakes any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law.  The forward-looking statements contained herein are expressly qualified by this cautionary statement.

PetroKamchatka Plc       
Graeme Phipps
President and Chief Executive Officer
9 Esplanade
St. Helier, Jersey
Tel: [phone] or [phone]

PetroKamchatka Services Inc.
Calvin Brackman
Vice President, Corporate Planning
1000, 505 - 3^rd Street SW
Calgary, Alberta, Canada
T2P 3E6
Tel: [phone] or [phone]
[email protected]