PNA

CALGARY, April 19, 2013 /CNW/ - PetroNova Inc. ("PetroNova" or the "Company") (TSX-V: 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 year ended December 31, 2012.

"In 2012, PetroNova executed on our exploration drilling strategy in the Llanos Basin, resulting in three oil discoveries and first-time reserves, which is a major milestone for the Company," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "For the remainder of 2013, we will delineate the discoveries in the Llanos Basin, and focus our drilling program on the high-potential targets in our PUT-2 and Tinigua Blocks, where we plan to commence drilling this quarter."

PetroNova's audited consolidated financial statements as at and for the years ended December 31, 2012 and 2011, together with the notes thereto, and the related management's discussion and analysis for the periods then ended, have been filed on SEDAR and are available for viewing under the Company's profile at www.sedar.com. In addition, the Company has filed on SEDAR its Annual Information Form for the year ended December 31, 2012 which contains reserves data and other oil and gas information as required by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

Since January 1, 2012, the Company:  

• Closed a private placement with the International Finance Corporation ("IFC"), the IFC African, Latin American and Caribbean Fund, LP and other shareholders for 46,153,845 units at a purchase price of Cdn$0.65 per unit for aggregate gross proceeds of approximately US$30.5 million
  
  
• Drilled twelve wells in the Llanos Basin, resulting in three oil discoveries at the Puerto Gaitán, Atarraya and Pendare wells on the CPO-06, CPO-07 and CPO-13 Blocks, respectively, one suspended well (Cayabana-1) and one successful delineation well (Pendare-2)
  
  
• Completed the processing of 203 km of 2D seismic data from the "El Tigre" area of the CPO-13 Block
  
  
• Received Agencia Nacional de Hidrocarburos ("ANH") approval to extend the Phase 1 exploration period for the PUT-2 Block to September 17, 2013
  
  
• Obtained environmental licenses for the Canelo-Norte and the Canelo-Nogal areas in the PUT-2 Block
  
  
• Submitted an environmental management plan, and awarded major drilling contracts, for the first exploratory well in the PUT-2 Block
  
  
• Completed the acquisition, processing and interpretation of 109 km² of 3D seismic data in the Tinigua Block
  
  
• Produced 20,491 gross barrels (18,852 net) of oil from extended production testing, of which 14,000 barrels were sold at a weighted average price of $101.84 per barrel
  
  
• Added the following reserves* as a result of its 2012 Llanos Blocks drilling program:
  
  

*The reserves data (contained herein the "Reserves Data") is based upon an independent evaluation by Petrotech Engineering Ltd. ("Petrotech") with an effective date of December 31, 2012 and a preparation date of April 15, 2013 (the "Petrotech Report"). The Reserves Data summarizes the crude oil reserves of the Company attributable to the Llanos Blocks and the net present values of future net revenue for these reserves using forecast prices and costs. The Petrotech Report has been prepared in accordance with the standards contained in the COGE Handbook and the reserves definitions contained in NI 51-101 and CSA Notice 51-324. The Company engaged Petrotech to provide an evaluation of proved and proved plus probable reserves and no request was made to evaluate possible reserves.

The pricing assumptions used by Petrotech to calculate the Total Future Net Revenue Before Income Tax are based on the West Texas Intermediate (WTI) oil price of US$91.82 per barrel, Brent oil price of US$111.11 per barrel and Vasconia oil price of US$101.47 per barrel as at December 31, 2012.

All of the Company's reserves are located onshore in Colombia and are attributable to the Llanos Blocks, of which the Company has a 20% interest. As at December 31, 2012, no reserves were attributable to the PUT-2 Block or the Tinigua Block.

It should not be assumed that the estimates of future net revenues presented represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of the Company's crude oil reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil reserves may be greater than or less than the estimates provided herein. Tables may not add due to rounding. Readers should review the definitions and more detailed information contained in the Company's 2012 Annual Information Form.

Outlook:

PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur in the remainder of 2013:

• Continue drilling delineation wells at its current discoveries
  
  
• Initiate drilling the first exploratory well in the PUT-2 Block in Q2 2013
  
  
• Obtaining the environmental license required to commence drilling of the first exploratory well on the Tinigua Block, which is anticipated to occur in Q2 2013, with drilling expected to commence in Q4 2013

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

Summary Financial Information:

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 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 Venture Exchange under the stock symbol "PNA".

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.

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 Company's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. All statements relating to reserves and net present value of reserves contained herein should be considered forward-looking statements. 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 quantity and quality of the Company's reserves, estimates of future net revenue associated with the Company's reserves and statements pertaining to the Company's future exploration and development activities and the timing thereof, including statements related to the Company's drilling plans and the Company obtaining the required environmental licenses. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things: the accuracy of its reserves estimates, 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, 2012 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.  

SOURCE PetroNova Inc.