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Market: AIM
Sector: Energy
EPIC: PELE
Latest Price: 15.88p  (0,00%)
52-week High: 46.75p
52-week Low: 11.50p
Market Cap: 19.31M
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PetroLatina Energy
www.petrolatinaenergy.com
PetroLatina Energy is engaged in the exploration development and production of oil and gas assets in Latin America.
Full PetroLatina Energy profile here
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PetroLatina reports 55.5% 3P oil and gas resource increase

8th Feb 2010, 2:09 pm PetroLatina reports 55.5% 3P oil and gas resource increase

PetroLatina (AIM: PELE) announced an updated resource estimate conducted by Ryder Scott, which put the proved, probable and possible reserves of the company at 11.40 mmboe (million barrels of oil equivalent), which is 55.5% higher than the previous estimate of 7.34 mmboe and is worth US$247 million.

The resource estimate comprises 3.36 mmbo and 1.15 bcf (billion cubif feet) of gas in the proven category, or a total of 3.55 mmboe, or a 29.1% increase over the previous estimate. Probable and possible reserves rose 20.2% and 134% to 6.09 mmboe and 5.32 mmboe respectively.

The proven reserves comprise 95% oil and 5% gas. The substantial increase in possible reserves reflects the company’s discovery of additional oil reserves at its Colon and Chuira fields.

The possible reserves are expected to increase as the company undertakes further drilling planned for 2010 and part of them are expected to move into the probable and proved categories.

Based upon November’s crude futures, the NPV (net present value) at a 10% discount of the proved reserves was estimated by Ryder Scott at US$71 million compared to US$47.7 million at the end of 2007, The NPV10 of the 2P reserves totalled US$140.3 million compared to US$108.8 million and the NPV10 of the 3P reserves totalled US$247.0 million, up from $164.9 million in 2007.

“The sizeable increase in the value of our reserves reflects the eight successful wells drilled by the company in 2009. Our plan continues to be to convert our Probable and Possible Reserves into Proved Reserves and considerably increase production and cash flow through the ongoing drill programme,” said chief executive of PetroLatina Juan Carlos Rodriguez.

The company also said that its Zoe 1 well on the Santa Lucia field in Colombia has identified two potentially oil bearing sections after reaching a total depth of 10,924 ft (feet). Testing of the primary target Lisama formation is anticipated at the end of February 2010.

The rig is currently drilling the Santa Lucia 4 development well.

PetroLatina is the operator of the Santa Lucia field and holds a 20% interest in the field alongside  Petrosantander and Ecopetrol S.A. As a result of the 2007 licence extension agreement, the company's Santa Lucia block was extended from 2013 to the economic life of the field, PetroLatina and Petrosantander assumed the obligation of bearing the cost of the first three development wells to be drilled.

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