CALGARY, April 14, 2015 /CNW/ - Petroamerica Oil Corp.
(TSX-V: PTA) ("Petroamerica" or the "Company"), a
Canadian oil and gas company operating in Colombia, is pleased to announce the financial
and operating results for the three and twelve months ended
December 31, 2014, and to provide an
operational update on the Company's activities in Colombia.
Copies of the Company's Management Discussion and Analysis
("MD&A"), Audited Financial Statements and Annual
Information Form ("AIF") have been filed with the Canadian
Securities Regulatory authorities and can be viewed or downloaded
at the Company's website at www.petroamericaoilcorp.com or at
www.sedar.com. The financial results for all periods presented are
in United States dollars unless
otherwise indicated.
2014 highlights:
- Closed the strategic corporate acquisition of Suroco Energy
Inc. adding significant new acreage, reserves and production in the
Putumayo basin of Colombia;
- Increased Proved plus Probable reserves ("2P") from 4.9
million barrels at the end of 2013 to 8.1 million barrels at the
end of 2014, an increase of 66%;
- Increased the total 2P reserve life index from 2.1 years at the
end of 2013 to 4.1 years as at December 31,
2014;
- Generated revenue (before royalty) for the year of
approximately $216 million with an
operating netback of approximately $50 per barrel and an average realised price of
$94.55 per barrel;
- Achieved average daily production of 6,246 barrels of oil
equivalent per day ("boepd");
- Drilled the Langur-1x oil discovery on the LLA-19 Block which
is currently on long-term test;
- Farmed down a 44.5% working interest ("WI") and acquired
an additional 5% interest in the LLA-10 block, ultimately retaining
a 50% WI. The farmee will pay 89% of the costs of the next
exploration well;
- Succesfully bid for the Putumayo exploration block, PUT-31, in
the 2014 Colombia Bid Round in a consortium with Gran Tierra Energy
Inc.
Quarterly highlights include:
- Despite sliding oil prices in the fourth quarter of 2014,
generated over $37 million in revenue
(before royalty) realising a price of approximately $70 per barrel and a net back of $28 per barrel;
- Achieved an average daily production of 5,988 boepd;
- Closed the year with over $73
million in cash.
Financial and Operating Results
The following table presents the highlights of Petroamerica's
financial and operating results.
(in $000 US except
share, per share or unless
otherwise noted)
|
|
Q4 2014
|
|
Q3 2014
|
|
Year ended
December
31,
2014
|
|
Year ended
December
31,
2013
|
|
|
|
|
|
|
|
|
|
Oil revenue – net of
royalties
|
$
|
31,540
|
$
|
43,150
|
$
|
174,217
|
$
|
203,255
|
Funds flow from
operations
|
$
|
16,719
|
$
|
1,048
|
$
|
62,616
|
$
|
108,790
|
Funds flow per share-
basic
|
$
|
0.02
|
$
|
0.00
|
$
|
0.09
|
$
|
0.19
|
Funds flow per share-
diluted
|
$
|
0.02
|
$
|
0.00
|
$
|
0.09
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
(Loss) income for
period
|
$
|
(54,121)
|
$
|
(7,947)
|
$
|
(38,027)
|
$
|
53,877
|
Total comprehensive
(loss) income
|
$
|
(51,030)
|
$
|
(14,182)
|
$
|
(43,221)
|
$
|
49,357
|
(Loss) income per
share - basic
|
$
|
(0.06)
|
$
|
(0.01)
|
$
|
(0.05)
|
$
|
0.09
|
(Loss) income per
share - diluted
|
$
|
(0.06)
|
$
|
(0.01)
|
$
|
(0.05)
|
$
|
0.09
|
Total
assets
|
$
|
290,430
|
$
|
361,906
|
$
|
290,430
|
$
|
213,171
|
Total cash and
short-term investments
|
$
|
73,296
|
$
|
63,221
|
$
|
73,296
|
$
|
66,631
|
Notes
payable
|
$
|
29,933
|
$
|
30,718
|
$
|
29,933
|
$
|
31,587
|
Shareholders'
equity
|
$
|
180,992
|
$
|
229,246
|
$
|
180,992
|
$
|
136,098
|
|
|
|
|
|
|
|
|
|
Exploration
costs
|
$
|
1,232
|
$
|
715
|
$
|
1,586
|
$
|
12,803
|
Capital expenditures
- excluding acquisition
|
$
|
19,449
|
$
|
9,564
|
$
|
46,586
|
$
|
73,942
|
Finding &
development costs - 3 year /boe
|
|
|
|
|
$
|
26.54
|
$
|
23.63
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding (000's)
|
|
872,521
|
|
871,751
|
|
872,521
|
|
589,908
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
(000's)
|
|
872,156
|
|
825,877
|
|
722,271
|
|
579,818
|
Diluted
(000's)
|
|
872,156
|
|
825,877
|
|
722,271
|
|
602,797
|
|
|
|
|
|
|
|
|
|
|
|
|
Average production -
bopd
|
|
5,988
|
|
6,009
|
|
6,246
|
|
5,451
|
Selling price
$/bbl
|
$
|
70.07
|
$
|
94.59
|
$
|
94.59
|
$
|
105.13
|
Royalty
$/bbl
|
$
|
(10.56)
|
$
|
(18.57)
|
$
|
(18.41)
|
$
|
(8.80)
|
Average
transportation costs $/bbl
|
$
|
(14.36)
|
$
|
(14.87)
|
$
|
(16.43)
|
$
|
(17.46)
|
Average production
cost $/bbl
|
$
|
(17.38)
|
$
|
(15.46)
|
$
|
(10.05)
|
$
|
(3.24)
|
Operating netback
$/bbl
|
$
|
27.77
|
$
|
45.69
|
$
|
49.70
|
$
|
75.63
|
Cash
netback$/bbl
|
$
|
12.90
|
$
|
39.10
|
$
|
39.47
|
$
|
67.13
|
|
|
|
|
|
|
|
|
|
Share
trading
|
|
|
|
|
|
|
|
|
High
|
$
|
0.44
|
$
|
0.44
|
$
|
0.44
|
$
|
0.40
|
Low
|
$
|
0.14
|
$
|
0.28
|
$
|
0.14
|
$
|
0.21
|
Close
|
$
|
0.14
|
$
|
0.30
|
$
|
0.14
|
$
|
0.35
|
Trading volume
(000's)
|
|
127,071
|
|
171,755
|
|
448,586
|
|
259,425
|
Fourth Quarter Financial Summary
For the three months ended December 31,
2014, the Company reported $37
million in revenue (before royalties) from the sale of 530
thousand barrels of oil equivalent ("boe"). The
realized sales price was $70.07 per
boe generating an operating netback of approximately $28 per barrel.
For the fourth quarter of 2014, the Company's net loss was
$54.1 million ($0.06 per share diluted), a result of lower
realised oil prices and an impairment charge of $70 million as a result of carrying value
adjustments on assets held due to the 2014 year-end reserves
evaluation that was primarily driven by lower oil price projections
for future years. This charge, which was not seen in 2013, coupled
with the lower realized price of oil in the fourth quarter of 2014,
were strong contributing factors behind the Company having a
comprehensive loss of approximately $43
million for the current year, versus comprehensive income of
approximately $49 million for fiscal
2013. The Company's capital expenditures for the fourth
quarter were $19 million, all
invested in Colombia. As at
December 31, 2014, the Company held
42 thousand barrels of oil ("Mbbls") in inventory.
Current Financial Status
The Company currently holds approximately $55 million in cash and an additional
$11 million in restricted cash.
It also has a $35 million Canadian
dollar denominated debenture outstanding, currently valued at
approximately $28 million, with a due
date of April 19, 2015. It is the
Company's intention to pay the debenture off in full at the
maturity using cash-on-hand. The Company is also in advanced
discussions with several parties to establish a new debt
facility. The Company expects to finalise this facility and
have it in place by the end of the second quarter of 2015.
The Company has no other debt outstanding.
Updated 2014 Reserves Information
Updated reserves information as of December 31, 2014 prepared by independent
reserves evaluator GLJ Petroleum Consultants Ltd. has been included
as part of the MD&A for the year ended December 31, 2014. Additional reserves
information as required under NI 51-101 and updated net present
value figures revised from the February 25,
2015 press release have also been included in the Company's
AIF, which has been filed on SEDAR.
2015 First Half Guidance
The Company has revised its capital spending projection for the
first half of 2015 from $20 million
as announced on January 12, 2015 to
$12.9 million. This reduction
is due to a combination of movement of the drilling of the Langur-2
appraisal well (on the LLA-19 block) to the third quarter of 2015,
and the removal of the Calatea-2 exploration well on the (El Porton
block) from the current drilling plans. The Company was
notified by its farmin partner on the El Porton block that it
intended to withdraw from the El Porton farmout agreement and not
drill the Calatea-2 exploration well. Petroamerica is
presently evaluating all options that are available to protect its
interests in the block.
In addition, due to a combination of the delay in the Langur-2
well and a number of operational issues, including pump failures on
key production wells on both the Las Maracas and Suroriente fields,
the Company projects that production for the first six months of
2015 will average approximately 4,200 boepd, down from the 5,400
boepd that had been previously projected and announced in
January 2015. In general, cost
control objectives are the primary focus in all the producing
fields, which has impacted the normal production maximization
measures that would occur under a stronger oil price
environment. The Company estimates that 75% of this shortfall
is a result of the revised drilling plan, and the higher than
projected downtime resulting from temporary problems with downhole
pumps and production reduction related to the current
cost-reduction focus of our well and infrastructure operations.
A summary of activity expected to take place over the first six
months of 2015 is provided below:
Prospect/Well
|
Activity
Type
|
Block
|
Working
Interest
|
Timing/Status
|
La
Casona-2
|
Long-Term
Test
|
El Eden
|
40%
|
Continuing
|
Langur-1
|
Long-Term
Test
|
LLA-19
|
50%
|
Continuing
|
Operations Update
Company WI production (before royalties) for the fourth quarter
averaged 5,988 boepd, exiting the year at 5,441 boepd for
December 31, 2014. First quarter 2015
production averaged 4,587 boepd, with 2,546 boepd coming from the
Llanos Basin and 2,041 bopd from the Putumayo Basin.
After commencing long-term testing with an electro-submersible
pump ("ESP") in January, the Langur-1X exploration
well (refer to the Company's press release of January 12, 2015) produced for a period of 33
days before being shut-in due to an ESP failure in
mid-February. The well was returned to production on
March 26, after a delay that allowed
negotiation of a reduced daily tariff, with the same rig used to
drill the well. After restarting the well, the average rate
over the most recent 17 days has been 466 barrels of oil per day
("bopd") and a watercut of 55%, or 208 bopd net to
the Company before royalty. The ESP is currently being
operated at a restricted rate to minimize fluid handling costs
while continuing to evaluate the long-term production
potential.
Operations have been suspended at the Quinde-3 well, after a
workover that included a fracture treatment and installation of
sand control measures failed to establish inflow from the well
despite early indications of connection with the reservoir. A
go forward plan is under discussion that will balance cost control
concerns with evaluation of the reasons for the lack of inflow from
a zone that, by log analysis, appears to have similar reservoir
properties and oil saturations to other wells in the Quinde
producing field.
PETROAMERICA OIL
CORP. Consolidated Statements of Financial
Position
|
|
|
|
As
at
|
|
|
As
at
|
|
|
|
December
31,
|
|
|
December
31,
|
(thousands of United
States dollars)
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
73,296
|
|
$
|
63,737
|
|
Short-term
investments
|
|
|
-
|
|
|
2,894
|
|
Trade and other
receivables
|
|
|
13,825
|
|
|
42,754
|
|
Prepayments and
deposits
|
|
|
463
|
|
|
508
|
|
Crude oil
inventory
|
|
|
2,096
|
|
|
348
|
|
|
|
89,680
|
|
|
110,241
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
11,065
|
|
|
5,170
|
|
Property, plant and
equipment
|
|
|
134,711
|
|
|
72,889
|
|
Exploration and
evaluation assets
|
|
|
54,974
|
|
|
24,871
|
|
|
|
200,750
|
|
|
102,930
|
Total
assets
|
|
$
|
290,430
|
|
$
|
213,171
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Current equity
tax
|
|
$
|
-
|
|
$
|
377
|
|
Current income
tax
|
|
|
2,459
|
|
|
19,546
|
|
Accounts payable and
accrued liabilities
|
|
|
38,803
|
|
|
15,400
|
|
Notes
payable
|
|
|
29,933
|
|
|
-
|
|
|
|
71,195
|
|
|
35,323
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Stock appreciation
rights liability
|
|
|
1,554
|
|
|
2,085
|
|
Notes
payable
|
|
|
-
|
|
|
31,587
|
|
Deferred tax
liability
|
|
|
26,750
|
|
|
2,818
|
|
Decommissioning
liabilities
|
|
|
9,939
|
|
|
5,260
|
Total
liabilities
|
|
|
109,438
|
|
|
77,073
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Share
capital
|
|
|
226,492
|
|
|
138,936
|
|
Contributed
surplus
|
|
|
24,638
|
|
|
24,079
|
|
Translation
reserve
|
|
|
(6,366)
|
|
|
(1,172)
|
|
Deficit
|
|
|
(63,772)
|
|
|
(25,745)
|
|
|
|
180,992
|
|
|
136,098
|
Total liabilities
and shareholders' equity
|
|
$
|
290,430
|
|
$
|
213,171
|
PETROAMERICA OIL
CORP. Consolidated Statements of income (loss) and
comprehensive income (loss)
|
|
|
|
Year ended December
31
|
(thousands of United
States dollars, except per share amounts)
|
|
2014
|
|
|
2013
|
Revenue
|
|
|
|
|
|
|
|
Oil revenue - net of
royalties
|
|
$
|
174,217
|
|
$
|
203,255
|
|
|
|
174,217
|
|
|
203,255
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
|
(22,981)
|
|
|
(6,833)
|
|
Transportation
|
|
|
(37,566)
|
|
|
(36,835)
|
|
Purchased
oil
|
|
|
(1,625)
|
|
|
(3,434)
|
|
Exploration and
evaluation
|
|
|
(1,586)
|
|
|
(12,803)
|
|
Depletion and
depreciation
|
|
|
(45,119)
|
|
|
(31,928)
|
|
Impairment of
property, plant and equipment
|
|
|
(69,869)
|
|
|
(3,228)
|
|
General and
administration
|
|
|
(18,822)
|
|
|
(13,338)
|
|
Transaction
costs
|
|
|
(8,495)
|
|
|
-
|
|
Share-based
payments
|
|
|
(769)
|
|
|
(2,998)
|
|
|
|
(206,832)
|
|
|
(111,397)
|
|
Finance and
other
|
|
|
(6,021)
|
|
|
(5,197)
|
|
Foreign exchange
gain
|
|
|
1,345
|
|
|
5,186
|
|
|
|
(4,676)
|
|
|
(11)
|
Income (loss)
before income taxes
|
|
|
(37,291)
|
|
|
91,847
|
Current income tax
expense
|
|
|
(8,556)
|
|
|
(28,173)
|
Deferred tax recovery
(expense)
|
|
|
7,820
|
|
|
(9,797)
|
Net (loss) income
for the period
|
|
|
(38,027)
|
|
|
53,877
|
Other
comprehensive loss
|
|
|
|
|
|
|
Items that will be
reclassified subsequently to income or (loss):
|
|
|
|
|
|
|
Reserve on
translation of foreign operations
|
|
|
(5,194)
|
|
|
(4,520)
|
Total
comprehensive (loss) income
|
|
$
|
(43,221)
|
|
$
|
49,357
|
Basic income
(loss) per share
|
|
$
|
(0.05)
|
|
$
|
0.09
|
Diluted income
(loss) per share
|
|
$
|
(0.05)
|
|
$
|
0.09
|
Weighted average
number of basic
|
|
|
|
|
|
|
|
common shares
outstanding
|
|
|
722,270,745
|
|
|
579,818,429
|
Weighted average
number of diluted
|
|
|
|
|
|
|
|
common shares
outstanding
|
|
|
722,270,745
|
|
|
602,796,899
|
PETROAMERICA OIL
CORP. Consolidated Statements of Changes in
Equity
|
(thousands of United
States dollars)
|
|
|
Share
Capital
|
|
|
Contributed
surplus
|
|
|
Translation
reserve
|
|
|
Deficit
|
|
|
Total
equity
|
Balance at January
1, 2014
|
|
$
|
138,936
|
|
$
|
24,079
|
|
$
|
(1,172)
|
|
$
|
(25,745)
|
|
$
|
136,098
|
Net loss for the
year
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(38,027)
|
|
|
(38,027)
|
Other comprehensive
loss
|
|
|
-
|
|
|
-
|
|
|
(5,194)
|
|
|
-
|
|
|
(5,194)
|
Total
comprehensive loss
|
|
|
-
|
|
|
-
|
|
|
(5,194)
|
|
|
(38,027)
|
|
|
(43,221)
|
Issue of share
capital
|
|
|
79,300
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
79,300
|
Warrants
exercised
|
|
|
8,273
|
|
|
(495)
|
|
|
-
|
|
|
-
|
|
|
7,778
|
Stock options
exercised
|
|
|
172
|
|
|
(65)
|
|
|
-
|
|
|
-
|
|
|
107
|
Share-based
payments
|
|
|
-
|
|
|
1,119
|
|
|
-
|
|
|
-
|
|
|
1,119
|
Cancellation of
shares
|
|
|
(189)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(189)
|
Balance at
December 31, 2014
|
|
$
|
226,492
|
|
$
|
24,638
|
|
$
|
(6,366)
|
|
$
|
(63,772)
|
|
$
|
180,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of United
States dollars)
|
|
|
Share
Capital
|
|
|
Contributed
surplus
|
|
|
Translation
reserve
|
|
|
Deficit
|
|
|
Total
equity
|
Balance at January
1, 2013
|
|
$
|
136,417
|
|
$
|
23,630
|
|
$
|
3,348
|
|
$
|
(79,622)
|
|
$
|
83,773
|
Net income for the
year
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
53,877
|
|
|
53,877
|
Other comprehensive
loss
|
|
|
-
|
|
|
-
|
|
|
(4,520)
|
|
|
-
|
|
|
(4,520)
|
Total
comprehensive (loss) income
|
|
|
-
|
|
|
-
|
|
|
(4,520)
|
|
|
53,877
|
|
|
49,357
|
Warrants
exercised
|
|
|
2,426
|
|
|
(361)
|
|
|
-
|
|
|
-
|
|
|
2,065
|
Stock options
exercised
|
|
|
93
|
|
|
(35)
|
|
|
-
|
|
|
-
|
|
|
58
|
Share-based
payments
|
|
|
-
|
|
|
845
|
|
|
-
|
|
|
-
|
|
|
845
|
Balance at
December 31, 2013
|
|
$
|
138,936
|
|
$
|
24,079
|
|
$
|
(1,172)
|
|
$
|
(25,745)
|
|
$
|
136,098
|
PETROAMERICA OIL
CORP. Consolidated Statements of Cash
Flows
|
|
|
|
Year ended December
31
|
(thousands of United
States dollars)
|
|
|
2014
|
|
|
2013
|
Operating
activities
|
|
|
|
|
|
|
Net income (loss) for
the year
|
|
$
|
(38,027)
|
|
$
|
53,877
|
Items not involving
cash:
|
|
|
|
|
|
|
|
Share-based
payments
|
|
|
769
|
|
|
2,998
|
|
Depletion and
depreciation
|
|
|
45,119
|
|
|
31,928
|
|
Unrealized foreign
exchange gain
|
|
|
(8,677)
|
|
|
(6,634)
|
|
Deferred tax
(recovery) expense
|
|
|
(7,820)
|
|
|
9,797
|
|
Accretion and
amortization
|
|
|
1,901
|
|
|
1,062
|
|
Abandonment
expenditures
|
|
|
(518)
|
|
|
-
|
|
Impairment of
property, plant and equipment
|
|
|
69,869
|
|
|
3,228
|
|
Impairment of
exploration and evaluation assets
|
|
|
-
|
|
|
12,534
|
|
|
|
62,616
|
|
|
108,790
|
|
Net changes in
non-cash working capital
|
|
|
24,593
|
|
|
(2,734)
|
Cash provided by
operating activities
|
|
|
87,209
|
|
|
106,056
|
Investing
activities
|
|
|
|
|
|
|
Exploration and
evaluation expenditures
|
|
|
(16,068)
|
|
|
(16,375)
|
Property, plant and
equipment expenditures
|
|
|
(27,564)
|
|
|
(53,465)
|
Restricted cash
investments
|
|
|
-
|
|
|
(1,376)
|
Corporate
acquisition, net of cash acquired
|
|
|
(10,777)
|
|
|
-
|
Cash used in
investing activities
|
|
|
(54,409)
|
|
|
(71,216)
|
Financing
activities
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
|
(28,500)
|
|
|
-
|
Stock options
exercised
|
|
|
107
|
|
|
58
|
Warrants
exercised
|
|
|
5,341
|
|
|
2,065
|
Cancellation of
shares
|
|
|
(189)
|
|
|
-
|
Cash (used in)
provided by financing activities
|
|
|
(23,241)
|
|
|
2,123
|
Increase in cash
and cash equivalents during the period
|
|
|
9,559
|
|
|
36,963
|
Cash and cash
equivalents, beginning of year
|
|
|
63,737
|
|
|
26,774
|
Cash and cash
equivalents, end of year
|
|
$
|
73,296
|
|
$
|
63,737
|
Forward Looking Statements:
This news release includes information that constitutes
"forward-looking information" or "forward-looking statements".
Statements relating to "reserves" or "resources" are deemed to be
forward looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the resources and
reserves described can be profitably produced in the future. More
particularly, this news release contains statements concerning
expectations regarding regulatory and partner approvals on the
Company's development plan, drilling and operational opportunities
and the timing associated therewith, test results and the timing
thereof, anticipated reserve life of the combined Company's assets,
potential future acquisitions and other statements, expectactions,
beliefs, goals, objectives, assumptions and information about
possible future conditions, results of operations or performance,
the use of available cash on hand in addition to the potential
exploration and development opportunities and expectations
regarding regulatory approval and the overall strategic direction
of the Company. The forward-looking statements contained in
this document, including expectations and assumptions concerning
the obtaining of the necessary regulatory approvals, including ANH
approval, and the assumptions, opinions and views of the Company or
cited from third party sources, are solely opinions and forecasts
which are uncertain and subject to risks.
A multitude of factors can cause actual events to differ
significantly from any anticipated developments and although the
Company believes that the expectations represented by such
forward-looking statements are reasonable, undue reliance should
not be placed on the forward-looking statements because there can
be no assurance that such expectations will be realized. Material
risk factors include, but are not limited to: the inability to
obtain regulatory approval, including ANH approval, for the
transfer of participating interests and/or operatorship for the
Company's properties, the risks of the oil and gas industry
in general, such as operational risks in exploring for, developing
and producing crude oil and natural gas, market demand and
unpredictable shortages of equipment and/or labour, changes or
fluctuations in production levels, the size of oil and natural gas
reserves or resources; incorrect assessments of the value of
acquisitions and exploration and development programs; geological,
technical, drilling, production and processing problems; potential
delays or changes in plans with respect to exploration or
development projects or capital expenditures; fluctuations in oil
and gas prices, foreign currency exchange rates and interest rates,
and reliance on industry partners.
Data obtained from the initial testing results at the
referenced wells, which may include barrels of oil produced and
levels of water-cut, should be considered to be preliminary until a
further and detailed analysis or interpretation has been done on
such data. The test results disclosed in this press release are not
necessarily indicative of long-term performance or of ultimate
recovery. The reader is cautioned not to unduly rely on such
results as such results may not be indicative of future performance
of the well or of expected production results for the Company in
the future.
Readers should also note that even if the drilling program as
proposed by the Company is successful, there are many factors that
could result in production levels being less than anticipated or
targeted, including without limitation, greater than anticipated
declines in existing production due to poor reservoir performance,
mechanical failures or inability to access production facilities,
among other factors.
Neither the Company nor any of its subsidiaries nor any of
its officers, directors or employees guarantees that the
assumptions underlying such forward-looking statements are free
from errors nor does any of the foregoing accept any responsibility
for the future accuracy of the opinions expressed in this document
or the actual occurrence of the forecasted developments.
The forward-looking statements contained in this document are
made as of the date hereof and the Company undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities
laws.
Use of "boe"
'boe' may be misleading if used in isolation.
Throughout this press release the calculation of barrels of oil
equivalent ("boe") is at a conversion rate of 6,000 cubic feet
("cf") of natural gas for one barrel of oil and is based on an
energy conversion method at the burner tip and does not represent a
value equivalence at the wellhead.
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.
SOURCE Petroamerica Oil Corp.