Petrolatina Energy Share Discussion Threads

[liquid millionaire] 18/7/2011 10:33

Many thanks someuwin. Any link to the EVO Buy Note on PELE or c&p of the main highlights please?

[someuwin] 18/7/2011 10:13

18 July Evolution Securities - PELE BUY target 61p

[cerrito] 16/7/2011 16:48

Two good things:
First as RBCRBC says nice to have the cash
The second is that Shell regards them as serious people-which I guess was an important reason for hiring the COO.
Let's hope ANH approval forthcoming by September 30.

[cyfalafwr] 16/7/2011 12:45

Wasnt really an article ,just a small paragraph :

A deal with Royal Dutch Shell spurred PELE 2.25p t0 27.5p.The Colombian explorer sold an 85% interest in one of its blocks for $15 cash ,$12 to be paid on regulatory approval.Shell becomes the sole operatorfor 6 yrs or until commercial.

[liquid millionaire] 16/7/2011 12:33

Any link please to the TIMES article?

[cyfalafwr] 16/7/2011 10:46

Got a mention in today's Times 'tiddler to watch' page 50

[don777] 15/7/2011 13:02

it's part of the "strategic alternatives ",

there are several more good news to come regarding the pipeline and Putumoya 4.

[ghhghh] 15/7/2011 12:16

Shell would only get involved if significant upside.

Hence 15% could be significant.

Plus PELE has the right to buy back in so if a great success this is sweet deal. Effectively they get the upside at cost but no downside if non commercial.

[tidy 2] 15/7/2011 10:54

85% guaranteed more productivity from pele.

Nice steady rise will do nicely.

This seems equivalent to a cheap shell investment ;)

[rbcrbc] 15/7/2011 10:44

The market seems to like it - My initial thought that 85% was a lot to give up, although the cash will be useful - 15mUSD is about 7p per share.

[liquid millionaire] 15/7/2011 10:30

Petrolatina Energy: Shell E&P Columbia To Buy 85% Interest In VMM-28

Petrolatina Energy (LSE:PELE)

Today : Friday 15 July 2011

Petrolatina Energy PLC (PELE.LN), an independent oil and gas exploration, development and production company focused on Latin America, said Friday it has entered into a farm-out agreement with Shell E&P Colombia, effective July 12 whereby Shell E&P Colombia will buy an 85% participating interest in the Company's VMM-28 Exploration and Production contract.

MAIN FACTS:

-VMM-28 block is currently wholly owned and operated by Petroleos del Norte S.A., or PDN, PetroLatina's Colombian operating subsidiary.

-Shell E&P Colombia has agreed to pay a fee of $15 million in cash to PetroLatina, of which $3 million is payable on execution of the agreement and the balance on receipt of the requisite Agencia Nacional de Hidrocarburos, or ANH approval.

-Shell E&P Colombia will be appointed as operator of the contract and will take responsibility for the work program.

-In the event that ANH approval isn't forthcoming by Sep. 30, Shell E&P Colombia has the right to terminate the agreement and require any payments made by it to PetroLatina to be repaid.

-Under the agreement, PetroLatina has granted Shell E&P Colombia a six year period of operational exclusivity; during this period, Shell E&P Colombia will pay for 100% of the costs, expenses and liabilities associated with the work program and shall be entitled to all rights in relation to the block.

-Shell E&P Colombia will make available to PetroLatina all data acquired by it in relation to the contract area and ensure that the license area remains in good standing and will comply with all applicable laws, regulations and orders of Colombia.

-Under the agreement, Shell E&P Colombia will obtain an 85% participating interest in the block; PDN will retain a 15% legal interest with an option to participate in the block upon expiration of the exclusivity period.

-PetroLatina shall pay its share of the costs, expenses and liabilities associated with the block and shall pay Shell E&P Colombia for its share of Shell E&P Colombia's total sunk costs incurred to such date, out of PetroLatina's share of production within the block.

-Operations on the VMM-28 block would thereafter be governed by a joint operating agreement.

-In the event that Shell E&P Colombia decides to withdraw from the farm-out agreement, the Company has the option to request that Shell E&P Colombia transfers its prevailing interest in the block back to PetroLatina.

-Following the receipt of ANH approval, Company intends to use the proceeds from the farm-out agreement to assist with the part funding of its planned ongoing drilling program and development commitments in respect of the remainder of its Colombian asset portfolio and for general working capital purposes.

-Petrolatina Energy shares at 0805 GMT up 2 pence, or 6.4%, at 27 pence valuing the company at GBP33.14 million.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [e-mail]

[liquid millionaire] 15/7/2011 10:25

Petrolatina Energy: Shell E&P Columbia To Buy 85% Interest In VMM-28

Petrolatina Energy (LSE:PELE)

Today : Friday 15 July 2011

Petrolatina Energy PLC (PELE.LN), an independent oil and gas exploration, development and production company focused on Latin America, said Friday it has entered into a farm-out agreement with Shell E&P Colombia, effective July 12 whereby Shell E&P Colombia will buy an 85% participating interest in the Company's VMM-28 Exploration and Production contract.

MAIN FACTS:

-VMM-28 block is currently wholly owned and operated by Petroleos del Norte S.A., or PDN, PetroLatina's Colombian operating subsidiary.

-Shell E&P Colombia has agreed to pay a fee of $15 million in cash to PetroLatina, of which $3 million is payable on execution of the agreement and the balance on receipt of the requisite Agencia Nacional de Hidrocarburos, or ANH approval.

-Shell E&P Colombia will be appointed as operator of the contract and will take responsibility for the work program.

-In the event that ANH approval isn't forthcoming by Sep. 30, Shell E&P Colombia has the right to terminate the agreement and require any payments made by it to PetroLatina to be repaid.

-Under the agreement, PetroLatina has granted Shell E&P Colombia a six year period of operational exclusivity; during this period, Shell E&P Colombia will pay for 100% of the costs, expenses and liabilities associated with the work program and shall be entitled to all rights in relation to the block.

-Shell E&P Colombia will make available to PetroLatina all data acquired by it in relation to the contract area and ensure that the license area remains in good standing and will comply with all applicable laws, regulations and orders of Colombia.

-Under the agreement, Shell E&P Colombia will obtain an 85% participating interest in the block; PDN will retain a 15% legal interest with an option to participate in the block upon expiration of the exclusivity period.

-PetroLatina shall pay its share of the costs, expenses and liabilities associated with the block and shall pay Shell E&P Colombia for its share of Shell E&P Colombia's total sunk costs incurred to such date, out of PetroLatina's share of production within the block.

-Operations on the VMM-28 block would thereafter be governed by a joint operating agreement.

-In the event that Shell E&P Colombia decides to withdraw from the farm-out agreement, the Company has the option to request that Shell E&P Colombia transfers its prevailing interest in the block back to PetroLatina.

-Following the receipt of ANH approval, Company intends to use the proceeds from the farm-out agreement to assist with the part funding of its planned ongoing drilling program and development commitments in respect of the remainder of its Colombian asset portfolio and for general working capital purposes.

-Petrolatina Energy shares at 0805 GMT up 2 pence, or 6.4%, at 27 pence valuing the company at GBP33.14 million.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [e-mail]

[dicko80] 15/7/2011 10:23

I see it as good and bad news....

bad news as they have given up a large % (85%) of a v high impact block in Coloumbia..

good news that they now have an additional $15m from this farm out, as previously they had stated they required further finance for drilling operations..

So PELE are you now set to deliver on your years of promises ??

[tidy 2] 15/7/2011 10:23

Has to be a solid hold now for anyone thinking of jumping ship.

Shell will not hang around...

If aim is all about potential then potential has just been provided here

Great news

[liberatingsteptoe] 15/7/2011 10:18

tidy 2,
That would be nice......back to original purchase levels. Took opportunity to top up and average down. Wish I'd woken up a bit earlier........
Looking rosier with Shell and its wallet.
LS

[tidy 2] 15/7/2011 10:12

This will sink in soon and be trading 50p+ range

[someuwin] 15/7/2011 09:57

This is surely what you would call 'transformational'.

[liquid millionaire] 15/7/2011 09:55

You can be sure with Shell

[someuwin] 15/7/2011 09:51

Fantastic news here.

[gray1107] 04/7/2011 16:28

Having been in for a few years with a small holding, I sold after the results. Should have done it as soon as the Colon Sandchannel was reported to be tight as was the plan. I'm now reinvested elsewhere and 25% up.

Statements like this make me glad I did;

"The issue of them delisting now that they have the 75% between directors and Tribeca and they said that there were big discussions in the board on this with differing views."

i.e. not out of the question

[don777] 04/7/2011 16:19

"Do I take a loss and go in search of better returns elsewhere or stay put and see what happens ?"

well, from the last 5-6 years i invested to this company, it's share price only raised twice based on the explorer drill on the new licenses.

do we have any plan or at least clue to drill Putumayo or VMW 28 in next 6 months?

2 or 3 development wells result can not push the share price higher.

but with one or two news and the sentiment back to this sector, it might be back to 40P. that's the most, IMHV, DYOR

[luminoso] 03/7/2011 19:06

Thanks Cerrito for a really full write up. I really appreciate you going to the trouble of doing it. It seems any imminent move to delist is not likely from what you have said. More dilution is likely but more income from production is coming through too. A lot depends on if they are able to hit the spot with their more 'targetted' drilling. The pipeline is a disappointment, but not really Pele's fault, I guess. Do I take a loss and go in search of better returns elsewhere or stay put and see what happens ? Rhetorical question, and only I can answer it!