PetroNova Reports 2014 Annual Results and Provides Outlook for 2015

PetroNova Inc. (TSXV:PNA) announced its annual operational and financial results for 2014 and provide an outlook for 2015.

As quoted in the press release:

• Increased net 2P reserves (proved plus probable, net of production, dispositions and revisions) by 112 percent compared to 2013 as a result of the recently drilled wells in the CPO-13 block, as described in the following table*:

• Completed the acquisition of 3D and 2D seismic data in CPO-7 and CPO-13 blocks, with the interpretation of the data ongoing
• Drilled three wells in the Pendare evaluation area (Pendare-4, Pendare-6 and Pendare 3H) in the CPO-13 block, resulting in significant increases in the proved and probable reserves
• Drilled two wells in the “El Tigre” area (Tillavá Este-1 and Tillavá Sur-1) of the CPO-13 block
• Entered into an agreement with a wholly owned subsidiary of Pacific Rubiales Energy Corp. whereby Pacific Rubiales acquired a 50 percent interest in the Tinigua Block (for details, please refer to the Company’s press release datedFebruary 28, 2014)
• Obtained environmental licenses for the Tinigua Block, allowing PetroNova to drill a maximum of 20 exploratory wells from five different platforms, and continued the socialization process of its environmental license and an environmental management plan (“PMA“)
• Fulfilled the exploration phase 1 obligation in the PUT-2 block under its exploration and production contract with the Agencia Nacional de Hidrocarburos (the “ANH“) by completing the evaluation of the Canelo Sur-2 well. The Company reprocessed 3D and 2D seismic data which is currently being re-interpreted, and initiated a new surface and communities survey of the unexplored central and southwestern areas of the PUT-2 block
• Completed a non-brokered private placement for gross proceeds of Cdn$8 million, issuing 28,571,428 common shares of the Company
• Reported gross 2014 production of 130,896 barrels from its extended production testing in the CPO-7 and CPO-13 blocks and sold 120,044 barrels in 2014. Sales of crude oil obtained during tests will be applied against exploration and evaluation assets until the commercialization phase is achieved
• Appointed Mr. Marcel Apeloig to the Board of Directors
• Significantly reduced its general and administration expenses

Outlook for 2015:

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

• Complete the extended testing of discoveries on the Llanos Blocks and the interpretation of seismic data to determine future evaluation and exploration activities in CPO-7 and CPO-13 blocks
• Complete the surface and communities survey, and the re-evaluation of prospects and resource estimation on the PUT-2 block
• Continue the socialization process, complete a PMA, and commence civil works on the Tinigua Block
• Continue the reduction of its operational and general and administrative expenses to preserve its current financial resources under the current circumstances

In Colombia, extractive industries are experiencing delays in the process of acquiring drilling permits. While the Company has a good number of permits and continues to progress its exploration drilling program, part of this progress is dependent upon receipt of future government approvals or permits.

Antonio Vincentelli, president and CEO of PetroNova, commented:

PetroNova made progress on each of our blocks in 2014, particularly in the Llanos Basin where our drilling activities added approximately 1.9 million barrels of net 2P reserves. We will continue to interpret well results from the Pendare and El Tigre campaign, as well as the seismic data acquired in our CPO-7, CPO-13, and PUT-2 blocks to determine future exploration opportunities.

Click here to read the full PetroNova Inc. (TSXV:PNA) press release.