PetroNova Announces First Quarter 2015 Results

CALGARY, May 27, 2015 /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 months ended March 31, 2015.

"We are pleased with the performance of our Pendare discoveries and are upgrading our surface facilities to accommodate the additional production we expect from these wells," said Antonio Vincentelli, President and CEO of PetroNova. "Given the current energy market conditions, PetroNova will continue to implement cost reduction strategies as we progress our exploration and development programs on each of our blocks."

PetroNova's consolidated interim financial statements as at and for the three months ended March 31, 2015 and 2014, 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 January 1, 2015, the Company:          

• Completed a surface and communities survey of the unexplored central and southwestern areas of the PUT-2 block
  
  
• Completed reprocessing of the 2D and 3D seismic acquired on the PUT-2 block, the results of which are currently being interpreted
  
  
• Continued extended testing of the Atarraya-1 and Atarraya-4 wells, and the interpretation of the recently  acquired Atarraya 3D seismic in the CPO-07 block
  
  
• Continued the socialization process and negotiation of arrangements with military forces to obtain their support, which is required for the Company to initiate the preliminary field activities in preparation of drilling an exploratory well on its Tinigua block
  
  
• Drilled the Pendare 3H and the Tillava Sur-1 wells in the CPO-13 block, fulfilling all of the Company's phase 2 commitments for the block. The Pendare 3H well has been incorporated into the ongoing extended testing of PetroNova's Pendare discoveries
  
  
• Continued upgrading surface facilities to accommodate new production from Pendare 3H and Pendare-6
  
  
• Reported gross production of 22,962 barrels from its extended production testing in the CPO-7 and CPO-13 blocks and sold 19,631 barrels during the first quarter of 2015. Sales of crude oil obtained during tests will be applied against exploration and evaluation assets until the commercialization phase is achieved
  
  
• Continued to reduce its general and administrative expenses due to current energy market conditions

Summary Financial Information:

	Year ended	Three months ended March
(US$, except shares and data per share)	2014*	2015	2014*
Revenues	136,192	17,668	28,871
Net Loss	46,230,892	833,361	541,829
Loss per share	0.19	0.00	0.00
Weighted average shares	238,495,739	254,542,705	225,971,277
Working Capital	1,711,118	(331,989)	11,664,611
Cash and equivalents and short-term investments	7,747,310	4,144,263	16,211,758
Exploration and evaluation assets	42,161,176	43,749,827	74,145,815
Block deposits (short- and long-term)	5,378,248	1,549,901	5,278,208
Total assets	61,835,795	55,683,193	103,232,993
Shareholders' equity	50,237,600	49,090,174	88,869,346

*Certain amounts have been restated (see Critical Accounting Principles and Estimates) in PetroNova's consolidated interim financial statements

Outlook:

PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur during the remainder of 2015:

• Complete the re-interpretation of the 2D and 3D seismic acquired on the PUT-2 block to define the next exploration activities for the block
  
  
• Continue extended testing of discoveries on CPO-07 and CPO-13 and complete the upgrading of surface facilities to accommodate new production
  
  
• Continue the socialization process, finalize military agreements, complete an environmental management plan, and commence civil works on the Tinigua block

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 interpretation of well results and seismic data to determine future exploration opportunities; the Company's future exploration and development activities and the timing thereof, including the completion of extended testing of discoveries in the Llanos blocks; the completion of seismic data interpretation  and the surface facilities upgrading for the CPO-7 and CPO-13 blocks; the completion of the surface and communities survey, and re-evaluation of prospects on the PUT-2 block; and the continuation of the socialization process, completion of an environmental management plan, securing military support and commencement civil works on the Tinigua block.

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 continue as a going concern; 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 and the timing thereof; the Company's future production levels; the sufficiency of budgeted capital expenditures to carry out planned expenditures; future sources of funding for the Company's exploration program; the Company's future debt levels; operating and general administrative costs; the geography of the areas in which the Company is exploring; success rates for future drilling; the performance of existing and future wells and well production rates; interest and inflation rates; currency exchange rates; adequate weather and environmental conditions; the impact of increasing competition on the Company; and the Company's ability to obtain financing on acceptable terms.

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; volatility in market prices for crude oil and natural gas and hedging activities related thereto; 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; risks inherent in the exploration, development and production of oil and natural gas which may create liabilities to the Company in excess of the Company's insurance coverage, if any; failure to accurately estimate and to establish adequate cash reserves for abandonment and reclamation costs; failure of third parties' reviews, reports and projections to be accurate; 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; uncertainties inherent in estimating quantities of oil and natural gas reserves and resources; potential losses which would stem from any disruptions in production, including work stoppages or other labour difficulties, or disruptions in the transportation network; failure to acquire or develop oil and natural gas resources and reserves; 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; current global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; 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.

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