CALGARY,
March 14, 2014 /CNW/ - PetroNova
Inc. ("PetroNova" or the "Company") (TSXV: PNA),
a company engaged in the exploration and development of oil and
natural gas resources in Colombia,
announces that it has temporarily suspended operations at the
Canelo Sur-2 exploratory well (the "Well") pending
resolution of a community-related dispute in the region.
The Well has reached the programmed total depth
of 9,970 feet; however, a community-related issue has arisen that
is preventing personnel and supplies from reaching the drilling
site. The Company, along with the drilling contractor, are
utilizing all available resources to maintain personnel safety and
well security while working with community representatives and
local authorities to identify and resolve the underlying motivation
of the unrest, in order to be able to resume normal activities.
Once operations recommence, a liner will be run in the Well in
order to acquire cased-hole logs such that a decision can be made
regarding testing operations which were initially planned for the
Lower "U" Sand of the "Villeta" Formation.
The Well was drilled to evaluate multiple
reservoir targets in the Villeta Formation with the principal
targets being the Lower "U" and the "T" Sands. Well log data and
mud-gas log data acquired indicate a gross reservoir thickness
of approximately 45 feet with fair quality oil shows and natural
fluorescence over the Lower "U" Sand and a gross reservoir
thickness of approximately 69 feet with poor oil shows over
the "T" Sand. The Villeta Upper "U" Sand, over which a full
suite of well logs was acquired, indicates the zone to be wet. Due
to adverse hole conditions, a porosity log was not acquired over
both of the Lower "U" and "T" Sands, which has hampered the
interpretation.
The Well is located in the PUT-2 Block (the
"Block") in Colombia's
Caguan-Putumayo Basin, a Block in which Suroco Energy Inc.
("Suroco") holds a 25% economic interest. Application
has been made to the Agencia Nacional de Hidrocarburos of
Colombia for its approval of the
conversion of Suroco's 25% economic interest to a full 25%
undivided working interest in the Block.
The Company will carefully monitor the situation
and will provide an update on any material developments.
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; the
resolution of the community-related dispute; and the resumption of
activities at the Well. With respect to forward-looking statements
contained in this press release, assumptions have been made
regarding, among other things: the ability of the Company to
successfully resolve the community-related dispute in a timely
manner; 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: the risks
that the community-related dispute will not be resolved in a timely
manner or at all and that community relations will further
deteriorate and violence will escalate, all of which could have an
adverse effect on the Well and the Company's business and
operations in general; 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.