PETRONOVA ANNOUNCES FIRST QUARTER 2011 RESULTS

CALGARY, May 30, 2011 /CNW/ -- 
CALGARY, May 30, 2011 /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, today announced its
 operational and financial results for the three month period ended
 March 31, 2011. All amounts are in US dollars unless otherwise
 specified.


"PetroNova made noteworthy progress this quarter by using previously
 acquired seismic to identify new leads and prospects," said Antonio
 Vincentelli, President and Chief Executive Officer of PetroNova. "Based
 on this work, and by shooting additional ongoing seismic, PetroNova has
 further characterized its assets in preparation for drilling later this
 year."


PetroNova's unaudited condensed interim consolidated financial
 statements for the three months ended March 31, 2011, together with the
 notes thereto, and the related management's discussion and analysis for
 the period then ended, are available on the Company's profile at www.sedar.com.


Highlights for the quarter ending March 31, 2011:  


    --  Completed the interpretation of 100 km 2D seismic acquired in
        the Putumayo 2 (PUT-2) block in 2010, as well as seismic lines
        exchanged with a neighboring block, resulting in the
        confirmation of the five original prospects, the identification
        of three new leads and the selection of six potential drilling
        locations.

    --  Contracted approximately100 km(2) of 3D seismic to optimize the
        drilling locations in the Canelo Sur and Nogal Prospects and
        surrounding areas and define additional drilling opportunities
        in the PUT-2 block.

    --  Confirmed two prospects in the CPO-06 block. Environmental
        permits for the prospects are ongoing with plans to commence
        drilling during the third quarter of 2011.

    --  Confirmed one prospect and identified one new prospect through
        the ongoing interpretation of the seismic acquired in the
        CPO-07 block.

    --  Identified additional prospects and leads through the ongoing
        interpretation of the seismic acquired in the CPO-13 block.



Highlights subsequent to March 31, 2011:


    --  Additional prospects and leads have been identified and mapped
        through the ongoing interpretation in the CPO-06, CPO-07 and
        CPO-13 blocks, currently accounting for a total of two, nine
        and four prospects and six, ten and eight leads, respectively.



Outlook: 


PetroNova is continuing with its scheduled exploration plans and
 commitments and anticipates the following activities to occur in the
 remainder of 2011 and 2012:


    --  Complete a campaign of approximately 100 km(2 )of 3D seismic on
        the PUT-2 block to optimize the exploratory drilling locations
        and initiate the drilling of its first exploratory well on this
        block in the fourth quarter of 2011 with a second well
        scheduled for 2012.

    --  Initiate the 109 km(2 )3D seismic program on the Tinigua block
        during July of 2011. Drilling of the first exploratory well on
        the Tinigua Block is scheduled for early 2012, with a second
        well to follow later that year.

    --  Initiate a three well drilling campaign in the CPO-6 block in
        the third quarter of this year. The Company has already
        selected the first two prospects to be drilled.

    --  Initiate a three well drilling campaign in the CPO-07 block in
        the third quarter of this year. Of the first three prospects to
        be drilled, two are related to the Caracara field's geological
        trend and is one related to the Ocelote and Quifa geological
        trends.

    --  Shoot the remaining 2D seismic on block CPO-13 (in the "El
        Tigre" indigenous community), adjacent to the producing
        South-West Quifa area operated by Pacific Rubiales, and start a
        three well drilling campaign early next year.



Summary Financial Information: 


 _____________________________________________________________________
|SELECTED       |    Year ended|              Three months ended March|
|FINANCIAL      |              |                                      |
|INFORMATION    |              |                                      |
|_______________|______________|______________________________________|
|(US$, except   |          2010|            2011|                 2010|
|shares and data|              |                |                     |
|per share)     |              |                |                     |
|_______________|______________|________________|_____________________|
|Revenues       |              |                |               44,400|
|               |       168,418|          81,655|                     |
|_______________|______________|________________|_____________________|
|Net Income     |   (4,300,282)|     (2,755,894)|              280,751|
|(Loss)         |              |                |                     |
|_______________|______________|________________|_____________________|
|Income (Loss)  |        (0.07)|          (0.02)|               280,75|
|per share      |              |                |                     |
|_______________|______________|________________|_____________________|
|Weighted       |    59,460,003|     165,301,302|                1,000|
|average shares |              |                |                     |
|_______________|______________|________________|_____________________|
|               |              |                |                     |
|_______________|______________|________________|_____________________|
|Working Capital|    58,507,024|      50,110,297|         (17,845,659)|
|_______________|______________|________________|_____________________|
|Cash and       |    60,710,250|      52,035,408|               67,096|
|equivalents    |              |                |                     |
|_______________|______________|________________|_____________________|
|Exploration and|    21,450,975|      22,555,332|            9,841,303|
|evaluation     |              |                |                     |
|assets         |              |                |                     |
|_______________|______________|________________|_____________________|
|Block deposits |     7,913,610|      13,191,427|            7,728,800|
|_______________|______________|________________|_____________________|
|Total assets   |    91,350,206|      89,578,291|           19,276,550|
|_______________|______________|________________|_____________________|
|Bank loans     |              |         513,700|                     |
|               |       940,031|                |                    0|
|_______________|______________|________________|_____________________|
|Shareholders'  |    88,354,726|      86,021,916|            (234,564)|
|equity         |              |                |                     |
|(Deficiency)   |              |                |                     |
|_______________|______________|________________|_____________________|




Annual and Special Meeting of Shareholders


PetroNova's Annual and Special Meeting of Shareholders will be held at
 the offices of Borden Ladner Gervais LLP, the Howard Boardroom,
 Centennial Place, East Tower, 1900, 520 - 3(rd) Avenue S.W., Calgary, Alberta T2P 0R3, at 3:00 p.m. (Calgary time) on
 Monday, June 13, 2011.


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 the
 Tinigua blocks located in the Caguan-Putumayo Basin in Colombia, both
 of which are operated by the Company, and the non-operated CPO-06,
 CPO-07 and CPO-13 blocks located in the Llanos Basin in Colombia. The
 common shares of the company trade on the TSX Vesture Exchange under
 the stock symbol "PNA".


Forward-Looking Information 


Certain statements contained in this press release constitute
 forward-looking statements. 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 Corporation'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. These statements speak only as of the
 date of this press release.


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 Company's seismic
 acquisition and drilling plans. 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;
 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 Company's annual information form for the year ended December
 31, 2010 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 the 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.


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. 


 


 


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