PetroNova Announces Third Quarter 2014 Results, Spuds First Well in its Llanos Basin Drilling Campaign

CALGARY, Nov. 20, 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 three and nine months ended September 30, 2014 and that it has spud the first of four planned wells at its Pendare discovery on the CPO-13 Block (in which PetroNova has 20 percent working interest).

"PetroNova is excited to commence our four well drilling campaign at the Pendare discovery, where encouraging preliminary 3D seismic data suggests a larger trend than we previously thought," said Antonio Vincentelli, President and CEO of PetroNova. "PetroNova is also looking forward to initiating a four exploratory well drilling campaign at El Tigre to assess the extension of the Quifa SW trend onto our CPO-13 Block by the end of November 2014."

PetroNova's consolidated interim financial statements as at and for the three and nine months ended September 30, 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 July 1, 2014, the Company:     

• Secured a rig and, on November 17, 2014, spud the first of four planned wells at the Pendare discovery on the CPO-13 Block.
• Received the environmental license for the El Tigre area and secured an additional rig to initiate its four exploratory well drilling campaign at El Tigre on the CPO-13 Block by the end of November 2014.
• Continued interpretation of additional 2D and 3D seismic data recently acquired in the CPO-7 and CPO-13 Blocks.
• For the three months ended September 30, 2014, produced 27,171 barrels (gross) of oil from its extended production testing in CPO-7 and CPO-13 and sold 32,018 barrels.
• In the Tinigua Block, the Company continued the socialization process of its environmental license and an environmental management plan (PMA).
• Entered into phase 2 of the exploration program on the PUT-2 Block, which includes commitments to drill two exploratory wells and acquire, process and interpret 10 km² of 3D seismic within the next three years. PetroNova completed the seismic acquisition during phase 1, which the ANH recognizes as fulfillment of part of PetroNova's phase 2 commitments.
• Successfully completed a non-brokered private placement for gross proceeds of $8 million, issuing 28,571,428 common shares of the Company, to fund a step out and exploratory drilling campaign in the Pendare discovery and its trend, based on the 3D seismic recently acquired.
• Appointed Marcel Apeloig to serve as a Director of the Board

Summary Financial Information:

	Year ended	Three months ended September
(US$, except shares and data per share)	2013	2014	2013
Revenues	165,583	34,646	43,102
Net Loss	4,750,465	1,349,543	1,096,673
Loss per share	0.02	0.01	0.01
Weighted average shares^(1)	216,943,437	247,321,355	218,713,212
Working Capital	4,623,746	7,599,025	15,869,266
Cash and equivalents and short-term investments	13,195,300	10,993,215	18,134,377
Exploration and evaluation assets	79,398,125	65,419,783	69,285,161
Block deposits (short- and long-term)	5,316,009	5,346,816	5,284,182
Total assets	107,288,803	89,542,165	102,158,407
Shareholders' equity	94,637,935	79,319,201	95,954,326

⁽¹⁾ Total outstanding common shares as at November 20, 2014 is 254,542,705

Outlook:

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

• Continue the extended testing of discoveries on the CPO-7 and CPO-13 Blocks.
• Complete the interpretation of the 3D seismic at Pendare on the CPO-13 Block and continue its four-well drilling campaign, which includes three appraisal wells to delineate the Pendare discovery and one exploratory well to explore its trend.
• Begin its four well exploratory drilling campaign at El Tigre area to appraise the Quifa SW extension onto the CPO-13 Block.
• Complete the interpretation of the 3D seismic at Atarraya on the CPO-7 Block.
• Continue the socialization process, complete an environmental management plan and commence civil works to drill the first exploratory well on the Tinigua Block.
• Conduct an updated surface and community survey of unexplored central and southwestern areas of the PUT-2 Block to initiate permitting processes.

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 interpretation of the 3D seismic campaign at Atarraya and Pendare and the drilling campaign on the CPO-7 and CPO-13 Blocks, respectively; the drilling of eight wells in the Llanos Blocks; the commencement of civil works to drill a first exploratory well on the Tinigua Block; and the initiation of permitting processes on the PUT-2 Block. 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 Annual Information Form 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]