PetroNova announces second quarter 2013 results

CALGARY, Aug. 26, 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 its operational and financial results for the three and six months ended June 30, 2013.

"PetroNova continues preparations to drill the first exploratory wells on the PUT-2 and Tinigua Blocks in the third quarter of this year and the first quarter of 2014, respectively, and we are excited as we approach drilling the high-potential targets on these blocks," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "During the second quarter, PetroNova entered into a partnership with Suroco Energy Inc. ("Suroco") to develop the PUT-2 Block, and made significant progress towards drilling the first high impact well in its portfolio."

PetroNova's condensed interim consolidated financial statements as at and for the three and six months ended June 30, 2013 and 2012, together with the notes thereto, and the related management's discussion and analysis for the three and six months then ended, are available under the Company's profile on SEDAR at www.sedar.com.

Since April 1, 2013, the Company:  

• Produced 11,834 barrels (gross) of oil from extended production testing and 9,000 barrels were sold
  
  
• Announced a successful production test at the Atarraya-4 step-out well on CPO-7, which yielded 1,000 barrels of fluid per day with an 11.2% watercut, and net production of 880 barrels of oil per day of 21.4°API oil
  
  
• Focused its participation in the Llanos Blocks by relinquishing its 20 per cent non-operating interest in the CPO-6 Block to Tecpetrol, the operator of the block
  
  
• Initiated a new 2D seismic campaign on CPO-7
  
  
• Submitted requests for new environmental licenses and modifications to existing licenses to the Agencia Nacional de Hidrocarburos (the "ANH") to drill additional wells on the Llanos Blocks
  
  
• Entered into an agreement with Suroco whereby Suroco acquired a 25 percent interest in the PUT-2 Block
  
  
• Completed the socialization process with local authorities and communities and awarded a drilling services contract for the first exploratory well on the PUT-2 Block. The civil contractor has completed mobilization to the site of the first exploratory well on the PUT-2 Block and civil works have been initiated
  
  
• Continued improvements of existing roads in preparation for the first exploratory well on the Tinigua Block
  
  
• Submitted additional information requested by Agencia Nacional de Licencias Ambientales ("ANLA") to obtain the environmental license to drill in Tinigua

Outlook:

PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur in the remainder of 2013:

• Continue extended testing of discoveries on the CPO-7 and CPO-13 Blocks
  
  
• Spud a first exploratory well on the PUT-2 Block commencing in Q3 2013
  
  
• Drill a first exploratory well on the Tinigua Block commencing in Q1 2014

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.

Summary Financial Information:

			Year ended			Three months ended June
(US$, except shares and data per share)			2012			2013			2012
Revenues			186,388			40,729			47,558
Net Loss			14,476,356			2,307,222			1,333,118
Loss per share			0.08			0.01			0.01
Weighted average shares			177,187,498			211,455,147			165,301,302
Working Capital			25,833,938			12,852,582			10,722,494
Cash and equivalents and short- term investments			34,638,532			21,368,023			13,522,733
Exploration and evaluation assets			58,441,392			69,296,716			59,555,952
Block deposits			5,176,340			5,157,993			5,504,040
Total assets			105,542,768			103,066,559			86,859,872
Shareholders' equity			94,748,646			92,102,922			80,370,463

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On August 15, 2013, the Company issued freely tradeable 14,516,130 common shares to settle its obligation related to the conversion of the Cdn$4.5 million convertible promissory notes (the "Notes") issued pursuant to the private placement completed by the Company on September 28, 2012. The Notes were converted into common shares of the Company at a conversion price of Cdn$0.31 per share.

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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 Company's drilling plans, and the extended testing of discoveries on the CPO-7 and CPO-13 blocks. 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, 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; 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 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]