Petrolatina Energy Share Discussion Threads

[topinfo] 07/11/2011 14:37

DJ Petrolatina Energy PLC Update re: Putumayo-4 Exploration Block

TIDMPELE

RNS Number : 6289R

Petrolatina Energy PLC

07 November 2011

FOR IMMEDIATE RELEASE

7 November 2011

PetroLatina Energy Plc

("PetroLatina" or the "Company")

Update re: Putumayo-4 Exploration Block

PetroLatina (AIM: PELE), the independent oil and gas exploration, development and production company focused on Latin America, is pleased to provide an update in respect of its activities on the Putumayo-4 exploration block.

As the operator, we have now completed the local community consultation process which was required to be undertaken in order to commence a seismic acquisition programme in the north part of the block. Tenders have been invited from more than 10 seismic service companies for the acquisition of an initial 104.8km of 2D seismic, together with an additional 45-50km of 2D seismic further to our bid commitments to the Agencia Nacional de Hidrocarburos, and we aim to initiate this seismic acquisition programme during December 2011. We expect the programme to take approximately three months to complete.

We are continuing to work and consult with the local communities to enable us to spud the first exploration well in 2012. An Environmental Impact Study (Estudio de Impacto Ambiental - EIA) is being prepared, and when completed will be presented to the relevant authorities in order to obtain the necessary exploration well drilling licence. We currently intend to present this application in December 2011 and expect that the Ministry of Environment will take between approximately 6 to 8 months to process the permit before drilling operations can commence.

The initial Putumayo-4 exploration well will target the Villeta formation N, U and T sands as well as the Caballos formation, from which rival companies within close proximity to our Putumayo-4 block are currently producing.

In addition, the Company announces that Strand Hanson Limited is the Company's sole broker and nominated adviser with immediate effect.

Juan Carlos Rodriguez, Chief Executive Officer of PetroLatina, commented:

"Having now secured the requisite consents from the local communities on the Putumayo-4 block, we can now commence our planned seismic acquisition programme. The data from this seismic shoot will allow us to finalise the drilling location for our first exploration well on the block, which is currently expected to be spudded during the third quarter of 2012."

Enquiries:

PetroLatina Energy Plc

Juan Carlos Rodriguez, Chief Executive Officer Tel: [phone]

Pawan Sharma, Executive Vice President - Corporate Tel: [phone]
Affairs & CFO 0081

Strand Hanson Limited
Simon Raggett / Matthew Chandler Tel: [phone]
3494

FTI Consulting
Ben Brewerton / Chris Welsh Tel: [phone]
3113

This information is provided

[monis] 07/11/2011 13:04

how much is our present proved up oil worth in the ground do you think approx?

[don777] 07/11/2011 12:52

Monis,
i agree we are undervalued.

but not just simply look it from the market cap.

we also have to think about the enterprise value, we have $25M loan to pay, all of the current oil/gas revenue will pay to MBL.

we have to drill,

D

[monis] 07/11/2011 11:57

Oil now up.

[monis] 07/11/2011 11:38

TIDMPELE

RNS Number : 5478R

Petrolatina Energy PLC

04 November 2011

FOR IMMEDIATE RELEASE

4 November 2011

PetroLatina Energy Plc

("PetroLatina" or the "Company")

ANH Approval of the Farm-out Agreement in respect of the

Company's VMM-28 Exploration Block

PetroLatina (AIM: PELE), the independent oil and gas exploration, development and production company focused on Latin America, is pleased to announce that it has now received approval from the Agencia Nacional de Hidrocarburos ("ANH"), for the farm-out agreement entered into with Shell Exploration and Production Colombia GmbH ("Shell E&P Colombia"), an affiliate of the Royal Dutch Shell group of companies, in respect of the Company's VMM-28 exploration block, the details of which were announced on 15 July 2011.

Under the terms of the agreement, Shell E&P Colombia will acquire an 85 per cent. participating interest in the Company's VMM-28 Exploration and Production contract. The VMM-28 block is currently wholly owned and operated by Petroleos del Norte S.A., PetroLatina's Colombian operating subsidiary.

In accordance with the terms of the farm-out agreement, Shell E&P Colombia agreed to pay a total fee of US$15 million in cash to PetroLatina and the remaining US$12 million is expected to be received shortly. Shell E&P Colombia will be appointed as operator of the contract and will take responsibility for the work programme.

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

Luc Gerard, Executive Chairman of PetroLatina, commented:

"I am extremely pleased that ANH approval has now been obtained and that we are able to formally welcome Shell E&P Colombia as our partner in respect of the VMM-28 contract. The farm-out agreement provides us with exposure to exploration activity on the VMM-28 block, including the technology and expertise of Shell, whilst enabling us to focus our resources on the development of the other promising assets in our Colombian portfolio, including the Putumayo-4 E&P block. "

------

Am i right in thinking that we are about to receive the above cash, we produce a lot of oil anyway and only have a market cap of £19m?

Surely we are very undervalued at this level?

Discussion welcome.

[kinghorm23] 07/11/2011 09:35

Hmmm . . .

the_boy_plunger - 1 Nov'11 - 16:03 - 11107 of 13125


TOPS

u stil in PELE......parties dont last like they used too!

TOPINFO - 1 Nov'11 - 16:10 - 11120 of 13125


No sold PELE like everyone else.

TOPINFO - 4 Nov'11 - 15:01 - 3282 of 3324


Had some from last week at 13p and bought more after RNS. Bad luck King Dong the 23rd

[monis] 07/11/2011 08:59

rizzla- I think your post over weekend was interesting saying why they had dropped prior to this news. Seems they dropped on no confidence and now with the deal signed they appear undervalued still due to the extent of the original drop.

[rizzzla] 07/11/2011 08:28

patience happy there just gathering

[kinghorm23] 07/11/2011 08:25

Usual topinfo reaction after his pump and dump.

I was hoping he would apologise, not a chance in hell !

[happygolucky] 07/11/2011 08:24

Normal service resumed :-(

I had hoped that there would be a little bit of momentum this morning after Friday's rise, but seems nobody is interested...

[1kiwi] 06/11/2011 16:19

rizzzla, only 15% of shares in issue available to pi's it will not take much to move the share price back up. Hopefully another Operations update is not too far away, would also be good to see some Director buys too.

[rizzzla] 06/11/2011 15:58

It's been a tough 12 months for holders of Pele. when they were on the
slide which continued right down to 13p. At the time I wrote that it felt to me that this had been overcooked. Basically the Colon3 well hadn't come in as most had thought however Petrolatina are not a one well outfit they have many producing assets in Columbia and recently released a healthy set of Interims in September of this year.• Revenues increased by 51% to US$14.5 million (2010: US$9.6 million) while Gross profit increased significantly to US$10.6 million* (2010: US$6.5 million*) now even though these figures are excellent the market at the time just failed to respond and the share price carried on sliding. The slide wasn't a reflection of company performance it was a reflection of Global market fear. All company's regardless of how well they have or are performing have been infected with this fear. The news today bodes very well for the company with a cash injection of $15 million dollars the share price has began to surge. Currently up 19%. I spoke to a few chins this morning who are well-connected they expect a 35/40% plus rise on low volume buying alone today. Now that's just an opinion from two of the many out there. Why should it be likely to end up over 35% today? Well if you research back and take some of the Nav predictions Pele at 20p are still a two-fold increase away from Net Asset Value. Todays $15 million dollars obviously increases the Nav while the tie up with a Multi-National will increase confidence significantly. This cash should now under-pin the company drilling campaign. It's going to be an interesting few days here for Petrolatina just where they will settle next week is the big question but in a market that is riddled with fear Petrolatinas' ANH Approval of the Farm-out Agreement re' the VMM-28 Exploration Block should go a long way in bringing back some much-needed confidence. And confidence, when World markets are in turmoil, drives stock-values upwards

[1kiwi] 06/11/2011 12:07

Fingers/Anyone

Any chance of an update on the charts since fridays great news?

[monis] 05/11/2011 10:24

rizzla - Yes it's certainly excellent news, look forward to Monday.

[amd7000] 04/11/2011 17:26

well thanks rizz for mentioning this on the ppc bb a few weeks ago, this is now the best share in my portfolio! :)

[rizzzla] 04/11/2011 17:13

$15 million and 15% share of production i believe


MONIS - 4 Nov'11 - 15:37 - 3300 of 3329


rizzla- why do you say Monday?


when the value of this deal is mentioned over the weekend and given the news was realeased on a dreary friday afternoon i expect it will gap up monday

[luminoso] 04/11/2011 17:04

James T

See what may have bothered you, but if "declaration of commerciality" ends the period of exclusivity earlier than 6 years, not sure what Pele would miss out on in terms of production as I would have thought Dec of Comm would precede any production revenue - or maybe I am missing something as I am no expert on contractual law.

[kinghorm23] 04/11/2011 16:58

Well done CufeS2

I could not find the last post, just shows what a compulsive lying
conman topinfo is !

CuFeS2 - 4 Nov'11 - 16:39 - 13132 of 13134

Hmmm . . .

the_boy_plunger - 1 Nov'11 - 16:03 - 11107 of 13125


TOPS

u stil in PELE......parties dont last like they used too!

TOPINFO - 1 Nov'11 - 16:10 - 11120 of 13125


No sold PELE like everyone else.

TOPINFO - 4 Nov'11 - 15:01 - 3282 of 3324


Had some from last week at 13p and bought more after RNS. Bad luck King Dong the 23rd

[james t kirk] 04/11/2011 16:48

Thanks luminoso, I was just trying to establish whether PELE get any return on the oil during the period of exclusivity. It reads like a pure royalty upfront and a legal entitlement to own 15% of area but no cash during production. I was thinking of buying but based on this view decided not to.

[luminoso] 04/11/2011 16:45

James t Kirk

As yours seems to be one of the few sensible post today on this board, thought it deserved an answer. You are right in one sense that it is old news. However, the rise is the share price recovering a small amount from the decline brought about by the long delay in ANH approval, which cast doubt in the market's mind that the Shell farm in and therefore payment to PELE would ever go ahead. HTH.

[kinghorm23] 04/11/2011 16:36

On Target

That's it, NAD, and if you go yesterday around 4pm on the topinfo pump and dump
thread him and his conman sidekick M4 were frantically trying to push it, bit of
a coincedence aint it given there's over 7000 stocks out there.

TOPINFO - 3 Nov'11 - 13:35 - 12125 of 13130

NAD

The Revised Capitalisation remains subject to shareholder approval and represents a premium of 92.31% to the closing price on 2 November 2011 and a 42.86% premium to the closing price on the day before the announcement of the Original Capitalisation.

TOPINFO - 3 Nov'11 - 13:37 - 12131 of 13130

I bought NAD M4.

[kinghorm23] 04/11/2011 16:33

TOPINFO - 4 Nov'11 - 16:30 - 13124 of 13126

PELE high of the day. Monday!!!!! IDS.

TOPINFO - 1 Nov'11 - 16:10 - 11120 of 13094

No sold PELE like everyone else.

[kinghorm23] 04/11/2011 16:32

I saw that username Alison1290 the other day, trying to remember the ticker ?