CALGARY,
April 24, 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 year
ended December 31, 2013.
"PetroNova has partnered with two
well-established South American oil and gas exploration and
production companies, placing PetroNova in a strategically and
financially favorable position as we continue to explore our assets
in the PUT-2 and Tinigua Blocks," said Antonio Vincentelli, President and Chief
Executive Officer of PetroNova. "PetroNova is working to evaluate
the Canelo Sur-2 well and we are looking forward to drilling the
high-impact Tinigua prospect."
PetroNova's audited consolidated financial
statements as at and for the years ended December 31, 2013 and 2012, together with the
notes thereto, and the related management's discussion and analysis
for the periods then ended, are available under the Company's
profile on SEDAR at www.sedar.com. In addition, the
Company has filed its annual information form for the year
ended December 31, 2013 (the "AIF") which contains
reserves data and other oil and gas information as required by
National Instrument 51-101 - Standards of Disclosure for
Oil and Gas Activities ("NI 51-101").
Since January 1, 2013, the
Company:
- Drilled five wells in the Llanos Basin, resulting in two
successful wells (Pendare-2 and Atarraya-4), two unsuccessful wells
(Guasco-1 and Cayabana), and one well to be used as a water
disposal well (Atarraya-3). At the end of December 2013, the Company's gross production
reached 390 barrels of oil per day (bbl/d).
- Net 2P (proved plus probable) reserves increased 74% to 1,659
Mbbl compared to 2012 as a result of its step out wells
drilled in the CPO-7 and CPO-13 Blocks (collectively, the
"Llanos Blocks"), as described in the following table*:
Block |
Gross Reserves (Mbbl) |
Net
Reserves (Mbbl) |
2012 |
2013 |
2012 |
2013 |
CPO-7 |
1,318 |
1,181 |
653 |
576 |
CPO-13 |
467 |
1,694 |
298 |
1,083 |
Total |
1,785 |
2,875 |
951 |
1,659 |
Notes: |
(1) |
|
Certain columns may not add due to rounding. |
(2) |
|
"Gross" means the Company's working interest before the
deduction of royalties and without including any royalty interests
of the Company. |
(3) |
|
"Net" means the Company's working interest after the deduction
of royalty obligations, plus the Company's royalty interests. |
(4) |
|
Based on forecast prices and costs. See "Disclosure of
Reserves Data" contained herein. |
|
|
|
At December 31,
2013, the Company has reported net 2P reserves of 1,659 Mbbl
as described in the following table*:
|
|
Light and Medium
Oil |
|
Heavy
Oil
|
|
Net Present Value of
Future Net Revenue
Before Income Taxes
Discounted at 10%/year
(US$ Thousands) |
|
|
Gross |
|
Net |
|
Gross |
|
Net |
Reserves Category |
|
(Mbbl) |
|
(Mbbl) |
|
(Mbbl) |
|
(Mbbl) |
PROVED |
|
|
|
|
|
|
|
|
|
|
|
Developed Producing |
|
300 |
|
146 |
|
157 |
|
100 |
|
9,637 |
|
Developed Non-Producing |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Undeveloped |
|
526 |
|
256 |
|
1,053 |
|
673 |
|
14,978 |
|
TOTAL
PROVED |
|
826 |
|
403 |
|
1,210 |
|
773 |
|
24,615 |
|
TOTAL
PROBABLE |
|
356 |
|
173 |
|
484 |
|
309 |
|
9,229 |
|
TOTAL PROVED PLUS PROBABLE |
|
1,181 |
|
576 |
|
1,694 |
|
1,083 |
|
33,844 |
|
Notes: |
(1) |
|
Certain columns may not add due to rounding. |
(2) |
|
"Gross" means the Company's working interest before the
deduction of royalties and without including any royalty interests
of the Company. |
(3) |
|
"Net" means the Company's working interest after the deduction
of royalty obligations, plus the Company's royalty interests. |
(4) |
|
Based on forecast prices and costs. See "Disclosure of
Reserves Data" contained herein. |
|
|
|
- Obtained environmental licenses for the Tinigua Block, and the
Canelo-Norte and Canelo-Nogal areas of the PUT-2 Block.
- Entered into an agreement with Suroco Energy Inc.
("Suroco") whereby Suroco's wholly owned subsidiary acquired
a 25 percent interest in the PUT-2 Block (for details, please refer
to the Company's press release dated July
22, 2013).
- Spud Canelo Sur-2, its first exploratory well on the PUT-2
Block, which reached the programmed total depth of 9,970 feet.
After suspension of activity due to community-related issues, work
at the well has resumed, the well has been cased and its evaluation
is ongoing.
- 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 and the Company is in the process to request an
additional extension.
- 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).
- Reported an average gross production of 258 bbl/d from extended
production testing in 2013 and a daily gross production of 390
bbl/d at the end of the year.
- The Company also announces that Eugenio
Ochoa, VP Exploration, will retire from the Company as of
April 30, 2014. The Company thanks
him for his dedicated and valuable services during his tenure.
Exploration functions will be conducted by current PetroNova
personnel.
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.
- Drill four exploratory wells in the Llanos Blocks.
- Complete the evaluation of the Canelo Sur-2 well on the PUT-2
Block.
- Commence civil works to drill a first exploratory well on the
Tinigua Block.
In Colombia,
extractive industries are experiencing delays in the process of
acquiring drilling permits. While the Company has a good number of
permits and continues to progress its exploration drilling program,
part of this progress is dependent upon receipt of future
government approvals or permits.
Summary Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
INFORMATION |
|
|
|
Year
ended |
|
|
|
Year ended |
|
|
|
Three months ended December |
(US$, except shares and data per
share) |
|
|
|
2013 |
|
|
|
2012 |
|
|
|
2013 |
2012 |
Revenues |
|
|
|
165,583 |
|
|
|
186,388 |
|
|
|
38,621 |
52,215 |
Net loss |
|
|
|
4,750,465 |
|
|
|
14,476,356 |
|
|
|
1,354,178 |
10,727,730 |
Loss per share |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.01 |
0.05 |
Weighted average shares |
|
|
|
216,943,437 |
|
|
|
177,187,498 |
|
|
|
225,971,277 |
211,455,147 |
Working Capital |
|
|
|
4,623,746 |
|
|
|
25,833,938 |
|
|
|
|
|
Cash and equivalents and
short-term investments |
|
|
|
13,195,300 |
|
|
|
34,638,532 |
|
|
|
|
|
Exploration and
evaluation assets |
|
|
|
79,398,125 |
|
|
|
58,441,392 |
|
|
|
|
|
Block deposits |
|
|
|
5,316,009 |
|
|
|
5,176,340 |
|
|
|
|
|
Total assets |
|
|
|
107,288,803 |
|
|
|
105,542,768 |
|
|
|
|
|
Shareholders'
equity |
|
|
|
94,637,935 |
|
|
|
94,748,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Disclosure of Reserves Data:
The 2013 reserves data contained herein is based
upon an independent evaluation by Petrotech Engineering
Ltd. ("Petrotech") with an effective date
of December 31, 2013 (the "2013 Petrotech Report") and
the 2012 reserves data contained herein is based upon an
independent evaluation by Petrotech with an effective date of
December 31, 2012 (the "2012
Petrotech Report"). The 2013 Petrotech Report and 2012
Petrotech Reserves Report were prepared in accordance with the
standards contained in the COGE Handbook and the reserves
definitions contained in NI 51-101 and CSA Notice 51-324. All of
the Company's reserves are located onshore in Colombia and are attributable to the
Llanos Blocks, of which the Company has a 20% interest. As
at December 31, 2013, no reserves were attributable to the
PUT-2 Block or the Tinigua Block.
The forecast pricing assumptions employed by
Petrotech in estimating the Company's 2013 and 2012 reserves data
are contained in the AIF and the annual information form of the
Corporation dated April 18, 2013 for
the year ended December 31, 2012,
respectively.
It should not be assumed that the estimates of
future net revenues presented represent the fair market value of
the reserves. There is no assurance that the forecast prices and
costs assumptions will be attained and variances could be material.
The recovery and reserve estimates of the Company's crude oil
reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered. Actual
crude oil reserves may be greater than or less than the estimates
provided herein. In addition, the estimates of reserves and future
net revenue for individual properties may not reflect the same
confidence level as estimates of reserves and future net revenue
for all properties, due to the effects of aggregation. Readers
should review the definitions and more detailed information
contained in the AIF.
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 estimates of the Company's
reserves and the net present value of such reserves and 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 drilling of four exploratory wells in the Llanos Blocks; the
completion of the valuation of the Canelo Sur-2 well on the PUT-2
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, 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 AIF 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.