PetroNova announces agreement with Suroco Energy Inc. for the sale of 25 percent interest in the Put-2 Block in Colombia; plans to spud the first exploratory well on the block in Q3 2013

CALGARY, July 22, 2013 /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 that, through its subsidiary PetroNova Colombia Inc., it has entered into an agreement with Suroco Energy Inc. ("Suroco") (TSX-V: SRN) whereby Suroco's subsidiary Suroco Energy SLU has acquired a 25 percent interest in the PUT-2 Block (in which PetroNova had a 100 percent working interest) located in Colombia's Caguan-Putumayo Basin (the "Block"). The 25 percent economic interest in the Block acquired by Suroco will convert into a full 25 percent undivided working interest in the Block upon approval by the Agencia Nacional de Hidrocarburos of Colombia.

"PetroNova is excited to advance our drilling program towards high-impact wells in our portfolio in association with Suroco Energy Inc., a Colombian-focused partner with vast regional knowledge and participation in the adjacent Alea 1947C Block," said Antonio Vincentelli, President and CEO of PetroNova. "Additionally, we have started civil work at the Canelo Sur-2 prospect with plans to initiate drilling in the third quarter of this year."

Under the terms of the agreement, Suroco Energy SLU will acquire a 25 percent interest in the Block in exchange for payment of US$3 million, associated with the acquisition of the 2D and 3D seismic, and US$199,165, representing 25 percent of the back costs incurred to date on the first well of the Block. Suroco Energy SLU also agreed to pay the first US$6 million in costs for the first exploration well drilled on the Block. If applicable, PetroNova Colombia Inc. will pay the next US$3 million in costs of said well, with additional costs funded by the parties based on their respective interests in the Block.

PetroNova also announced that the Colombian Ministry of Environment has granted environmental permits for Canelo-Nogal and Canelo-Norte regions of the Block on December 20, 2012 and January 31, 2013, respectively. PetroNova has reached the necessary agreements with the local communities to initiate civil work, which is now underway. PetroNova plans to spud Canelo Sur-2, the first exploratory well on the Block, in Q3 2013, once civil work is complete and the secured drilling rig has been mobilized. The Canelo Sur-2 well targets a large four-way closure identified, along with other prospective features, by a 3D seismic survey acquired in 2011.

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.

Forward-Looking Information:

Certain statements contained in this press release constitute forward-looking statements. 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. These statements speak only as of the date of this press release.

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 Company's drilling plans. 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; 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, including, but not limited to: general economic, market and business conditions; risks related to the exploration, development and production of oil and natural gas; 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; not obtaining the necessary approvals for the conversion of the 25 percent economic interest in the Block into a full 25 percent undivided working interest in the Block; 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 Company's annual information form for the year ended December 31, 2012 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 the 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.

Antonio Vincentelli
President & Chief Executive Officer  
954 317 3990
[email protected] 

Stelvio Di Cecco
Chief Financial Officer
954 317 3990
[email protected]

Abby Garfunkel
Investor Relations
403 218 2887
[email protected]