Revision to the Award of Block LLA57

 

TIDMPELE 
 
RNS Number : 3765U 
Petrolatina Energy PLC 
14 October 2010 
 

14 October 2010 
 
                            PetroLatina Energy Plc 
                        ("PetroLatina" or the "Company") 
 
                      Revision to the Award of Block LLA57 
 
PetroLatina (AIM: PELE), the independent oil and gas exploration, development 
and production company focused on Latin America, announces that Colombia's 
hydrocarbon regulatory agency (the Agencia Nacional de Hidrocarburos ("ANH")) 
has reversed its previous decision to award block LLA57, in the Llanos basin, to 
PetroLatina and has decided instead to award the block to a third party.  This 
development does not affect the award to PetroLatina of block VMM28 in the 
Middle Magdalena basin immediately adjacent to the Company's La Paloma block. 
 
As referred to in PetroLatina's interim results for the six months ended 30 June 
2010, the Company's wholly owned subsidiary, Petroleos del Norte S.A. ("PDN"), 
participated in the ANH's 2010 Colombian licensing round and in late June 2010 
was notified that it was the highest bidder for two new blocks, namely VMM28 in 
the Middle Magdelena basin and LLA57 in the Llanos basin. The awards were made 
subject to the finalisation and signature of formal exploration and production 
contracts with the ANH. 
 
Since the date of the awards, the Company has been made aware of a conflicting 
claim over the LLA57 block raised by Parex Resources Inc., an under bidder, 
which has been under evaluation by the ANH and its appointed external consultant 
to the bid process, RISCO F.C., alongside other disputed awards. Despite a 
release on the ANH's website on 9 August 2010 containing RISCO F.C's 
recommendation that PDN be the recipient of LLA57, the ANH awarded the block to 
a third party.  Although an appeal was made by the Company contesting this 
award, it was rejected by ANH . 
 
Juan Carlos Rodriguez, CEO of PetroLatina, commented: 
 
"It is clearly disappointing to have been unsuccessful in our bid for LLA57. It 
remains our intention to be represented in all three of the most prolific basins 
in Colombia namely Middle Magdalena, Putumayo and Llanos, and we will submit 
bids for new acreage in the Llanos basin in forthcoming bidding rounds. 
 
Despite this, the award of VMM28 in the Middle Magdalena basin represents an 
exciting opportunity. The block lies to the west of, and immediately adjacent 
to, our existing La Paloma block containing the Colon field, which we are 
currently developing. The award of this block represents a continuation of our 
strategy to build a large and profitable area of core licence interests in the 
Middle Magdalena basin. We now hold 5 contiguous blocks in this area.  The block 
located immediately to the north was awarded to Royal Dutch Shell plc, with whom 
technical discussions have been held recently to further understand the 
potential opportunity of the basin." 
 
PetroLatina expects to finalise and sign the formal exploration and production 
contracts for block VMM28 with the ANH during the fourth quarter of this year. 
 
 
Enquiries: 
+---------------------------------------------+--------------------+ 
| PetroLatina Energy Plc                      |                    | 
| Juan Carlos Rodriguez, Chief Executive      | Tel: +57 (1) 627   | 
| Officer                                     | 95 10              | 
| Pawan Sharma, Executive Vice President -    | Tel: +44 (0)20     | 
| Corporate Affairs & CFO                     | 7766 0075          | 
|                                             |                    | 
+---------------------------------------------+--------------------+ 
|                                             |                    | 
+---------------------------------------------+--------------------+ 
| Strand Hanson Limited                       | Tel: +44 (0)20     | 
| Simon Raggett / Matthew Chandler            | 7409 3494          | 
|                                             |                    | 
+---------------------------------------------+--------------------+ 
|                                             |                    | 
+---------------------------------------------+--------------------+ 
| Evolution Securities Limited                | Tel: +44 (0)20     | 
| Rob Collins / Chris Sim                     | 7071 4300          | 
|                                             |                    | 
+---------------------------------------------+--------------------+ 
|                                             |                    | 
+---------------------------------------------+--------------------+ 
| Financial Dynamics                          | Tel: +44 (0)20     | 
| Ben Brewerton / Susan Quigley               | 7831 3113          | 
|                                             |                    | 
+---------------------------------------------+--------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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