PetroNova announces first quarter 2014 results

CALGARY, May 22, 2014 /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 its operational and financial results for the quarter ended March 31, 2014.

Antonio Vincentelli, President and CEO of PetroNova, commented, "PetroNova announced two important developments during the first quarter: we entered into a strategic partnership with Pacific Rubiales that enables us to explore and develop the Tinigua prospect with minimum additional financial commitments until the commercial phase. We also received the environmental license to drill up to 20 exploratory wells on the Tinigua Block, which PetroNova considers to be our highest-impact asset."

PetroNova's consolidated interim financial statements as at and for the three months ended March 31, 2014 and 2013, together with the notes thereto, and the related management's discussion and analysis for the periods then ended, will be available under the Company's profile on SEDAR at www.sedar.com.

Since January 1, 2014, the Company:  

• Obtained environmental licenses for the Tinigua Block which allows PetroNova to drill a maximum of 20 exploratory wells from five different platforms.
  
  
• Entered into an agreement with a wholly owned subsidiary of Pacific Rubiales Energy Corp. ("Pacific Rubiales") whereby Pacific Rubiales acquired a 50 percent interest in the Tinigua Block (for details, please refer to the Company's press release dated February 28, 2014).
  
  
• Received an independent engineering evaluation prepared by Petrotech Engineering Ltd. Effective December 31, 2013 evaluating the Company's reserves. The evaluation shows a 74 percent increase in the Company's net 2P (proved plus probable) reserves at December 31, 2013 compared to December 31, 2012 (for details, please refer to the Company's press release dated April 24, 2014).
  
  
• Received approval from the Agencia Nacional de Hidrocarburos (the "ANH") for an extension of the phase 2 exploration program for the Tinigua Block to June 17, 2014. The Company is in the process of requesting an additional extension.
  
  
• Completed road repairs to enable rig load transportation to the Tinigua drilling site.
  
  
• Fulfilled the phase 1 obligation under its exploration and production contract with the ANH by resuming and completing the evaluation of the Canelo Sur-2 well. The well test was deemed inconclusive and the well is currently suspended.
  
  
• Completed the acquisition of 3D seismic data at Pendare in CPO-13. The processing and interpretation of the data is in progress.
  
  
• Completed the acquisition of additional 2D seismic data in CPO-7. The interpretation of the data is in progress.
  
  
• Produced 35,165 barrels (gross) of oil from its extended production testing in CPO-7 and CPO-13 and sold 35,604 barrels.

Summary Financial Information:

	Year ended December	Three months ended March 31,
(US$, except shares and data per share)	2013	2014	2013
Revenues	165,583	28,871	43,131
Net Loss	4,750,465	541,829	1,341,291
Loss per share	0.02	0.00	0.01
Weighted average shares	216,943,437	225,971,277	211,455,147
Working Capital	4,623,746	11,664,611	20,419,828
Cash and equivalents and short-term investments	13,195,300	16,211,758	28,695,901
Exploration and evaluation assets	79,398,125	75,831,820	63,180,871
Block deposits (short- and long-term)	5,316,009	5,278,208	5,129,566
Total assets	107,288,803	108,307,511	105,607,923
Shareholders' equity	94,637,935	93,943,864	93,847,088

Outlook:

PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur during the remainder of 2014:

• Continue the extended testing of discoveries on the Llanos Blocks.
  
  
• Complete the 3D seismic campaign at Atarraya and Pendare on the CPO-7 and CPO-13 Blocks, respectively.
  
  
• Appraise its Pendare and Atarraya discoveries.
  
  
• Drill two exploration wells at the El Tigre prospect in the fourth quarter of 2014 to appraise the Quifa SW extension onto the CPO-13 Block.
  
  
• Commence civil works to drill the first exploratory well on the Tinigua Block.

In Colombia, extractive industries are experiencing delays in the process of acquiring drilling permits. While the Company continues to progress its exploration drilling program, part of this progress is dependent upon receipt of such government approvals or permits.

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.

Caution Regarding Forward-Looking Statements and Information:

Certain statements and information contained in this press release constitute forward-looking statements and information (collectively "forward-looking statements") within the meaning of applicable securities laws. 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.

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 extended testing of discoveries on the Llanos Blocks; the completion of the 3D seismic campaign at Atarraya and Pendare on the CPO-7 and CPO-13 Blocks, respectively; the appraisal of the Company's Pendare and Atarraya discoveries; the drilling of two exploratory wells in the CPO-13 Block; and the commencement of civil works to drill a first exploratory well on the Tinigua Block. In addition, statements relating to "reserves" or "resources" are by their nature 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. The recovery and reserve estimates of PetroNova's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. 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; the applicability of technologies for recovery and production of the Company's oil and natural gas resources and reserves; the recoverability of the Company's oil and gas resources and reserves; 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 and uncertainties, including, but not limited to: general economic, market and business conditions; risks related to the exploration, development and production of oil and natural gas; the results of the Company's exploration program; 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; 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 Annual Information Form for the year ended December 31, 2013 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 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]