CALGARY, Aug. 21, 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 June 30, 2014.
"PetroNova continues to progress our exploration and development
plans, and has advanced to phase 2 of our exploration programs in
the CPO-13 and PUT-2 Blocks," said Antonio
Vincentelli, President and CEO of PetroNova. "The proceeds
from the recently completed $8
million private placement will support a drilling campaign
on the CPO-13 Block, where we plan to drill at least four wells to
delineate the Pendare discovery and appraise the extension of the
Quifa SW oil field onto the Block."
PetroNova's consolidated interim financial statements as at and
for the three and six months ended June 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 April 1, 2014, the
Company:
- Obtained its December 31, 2013
reserves report, which shows a 74 percent increase in its net 2P
(proved plus probable) reserves compared to 2012 (for details,
please refer to the Company's press release dated April 24, 2014).
- Completed the acquisition of additional 2D and 3D seismic data
in the CPO-7 and CPO-13 Blocks.
- 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.
- Entered into phase 2 of the exploration program on the CPO-13
Block, which includes commitments to drill three exploratory wells
within the next three years. PetroNova drilled one of these wells
during phase 1, which the Agencia Nacional de Hidrocarburos (the
"ANH") recognizes as fulfillment of part of PetroNova's
phase 2 commitments.
- For the three months ended June 30,
2014, produced 34,784 barrels (gross) of oil from its
extended production testing in CPO-7 and CPO-13 and sold 25,865
barrels.
- In the Tinigua Block, the ANH temporarily suspended the
duration of the phase 2 exploration program until military support
is secured, allowing PetroNova the time required to resolve issues
in the area.
- Fulfilled the phase 1 obligations under its exploration and
production contract with the ANH by resuming and completing the
evaluation of the Canelo Sur-2 well on the PUT-2 Block. The Canelo
Sur-2 well was abandoned and an impairment provision of
$18.9 million has been recorded.
- Entered into phase 2 of the exploration program on the PUT-2
Block, which includes commitments to drill two exploratory wells
and acquire, process and interpret 10 km2 of 3D seismic
within the next three years. PetroNova completed the seismic
acquisition during phase 1, which the ANH recognizes as fulfillment
of part of PetroNova's phase 2 commitments.
- Pursuant to the Company's 10% rolling stock options plan, the
Board of Directors has approved the grant of 280,000 stock options
to Marcel Apeloig who was recently appointed to serve on the
Company's Board. One half of the options will vest in one year and
the other half will vest in two years from the date of grant. The
options will expire in five years from date of grant and will be
priced at the common share's market value at the end of the current
blackout period.
Summary Financial Information:
|
Year
ended
|
Three months ended
June
|
(US$, except
shares and data per share)
|
2013
|
2014
|
2013
|
Revenues
|
165,583
|
39,527
|
40,729
|
Net Loss
|
4,750,465
|
20,422,935
|
2,307,222
|
Loss per
share
|
0.02
|
0.09
|
0.01
|
Weighted average
shares(1)
|
216,943,437
|
225,971,277
|
211,455,147
|
Working
Capital
|
4,623,746
|
2,740,993
|
12,852,582
|
Cash and equivalents
and short-term investments
|
13,195,300
|
9,754,378
|
21,368,023
|
Exploration and
evaluation assets
|
79,398,125
|
63,679,233
|
69,296,716
|
Block deposits
(short- and long-term)
|
5,316,009
|
5,314,844
|
5,157,993
|
Total
assets
|
107,288,803
|
88,520,711
|
103,066,559
|
Shareholders'
equity
|
94,637,935
|
73,744,449
|
92,102,922
|
(1) Total outstanding common shares as at
August 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. Based on encouraging preliminary results of
the seismic data, PetroNova is initiating a four-well drilling
campaign to delineate the Pendare discovery and explore its
trend.
- Initiate an exploratory drilling campaign in Q4 2014 of up to
four exploratory wells at the 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 and identify step out opportunities to appraise
the Atarraya accumulation in Q1 2015.
- 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 initiation of a 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.