Platino Energy Corp. Announces an Operational, Financial and Strategic Update, First Quarter Financial Results, Results of th...
15 Mai 2014 - 12:09AM
Marketwired Canada
Platino Energy Corp. ("Platino" or the "Company") (TSX VENTURE:PZE) announces a
number of items, including a corporate operations, financial and strategic
update, first quarter financial results, annual general meeting results, and an
updated corporate presentation.
OPERATIONAL AND FINANCIAL UPDATE
Coati Block
The Company recently received approval for a long-term test of the Coati-1 well
and is currently preparing a test program to be initiated in the second quarter
of 2014. The planned test will involve a re-entry of the Coati-1 well utilizing
rented facilities and a jet-pump with a slick-line unit, targeting production of
the U Sandstone. The Coati-1 well originally encountered 10 feet gross/8 feet
net of pay (13% porosity) in the U Sandstone and tested 141 barrels of oil per
day of 27 degrees API oil over a 19 hour period. The reservoir is not pressure
depleted and produced minimal water. The planned U Sandstone re-entry will
assist management in determining whether commercial quantities of oil can be
produced from the reservoir and will satisfy Agencia Nacional de Hidrocarburos
("ANH") requirements to retain the Coati-1 evaluation area, which must be
completed by the end of June 2014. The capital investment for the U Sandstone
re-entry is expected to be minimal.
The Company has applied for a global block environmental license on the Coati
block. All new exploration activities will be suspended until the application
process is completed, which is expected to be in the third quarter of 2015.
Putumayo-8 Block
Expected exploration activity in 2014 on the Putumayo-8 block has been delayed
due to issues related to community negotiations and the environmental licensing
process. As a result of these delays, Platino and its partner do not expect to
begin civil works on the first Putumayo-8 exploration well until late in 2015.
In addition, the partners are evaluating the potential to convert the remaining
112 km2 seismic commitment to the ANH in respect of the block to an additional
exploration well to be drilled in 2016.
Block Activity Summary
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Block Working Interest Activity Expected Timing
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Coati 100%(1) Coati-1 re-entry to produce Q2 2014
U-sand
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Environmental license Q2 2014 to Q3 2015
process
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Drill Nasua exploration well Q4 2015
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Putumayo-8 50% Environmental license Q2 2014 to Q3 2015
process
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Drill first exploration well Q4 2015
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Andaquies 100% Evaluating further As early as Q3 2014
exploration plans
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(1) Working interest will be reduced to 80% upon Canacol Energy Ltd.
("Canacol") earning-in in accordance with farm-in agreement
General & Administrative Expenses
Platino has significantly reduced general and administrative ("G&A") expenses to
match the current level of operations to ensure that the Company preserves cash
balances for use in potential asset purchases, farm-ins or other transactions.
Management estimates full year 2014 G&A to be between US$3 million and US$4
million, with a go-forward annualized run-rate of approximately US$2.5 million.
2014 Full Year Budget & Change in Cash
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Item US$ MM
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Dec 31, 2013 Cash & Short Term Investments $54.7
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Lower Spend Higher Spend
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Capital Expenditures ($3.5) ($5.0)
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G&A Expenses ($3.0) ($4.0)
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Estimated Dec 31, 2014 Cash & ST Investments $48.2 $45.7
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The estimated year-end 2014 cash position equates to C$0.69 to C$0.77(2) per
basic share in cash.
STRATEGIC FOCUS
The Company has continued to pursue transactions with the goal of generating
near-term catalysts and management is focused on three key areas:
1. Utilizing Platino's strong financial position.
-- March 31, 2014 cash and short-term investments of US$53 MM (approx.
C$0.84(2) per basic share)
-- No debt
-- Low ANH commitments
-- Reduced annualized G&A run rate of approx. $2.5 MM
2. Maintaining the ability to act quickly on strategic opportunities.
3. Developing a prospective long-term portfolio.
-- Three Putumayo blocks with high working interests
-- Past production of oil at Coati with well re-entry expected in the
second quarter of 2014
-- Minimal required capital spend in 2014
(2) CAD/USD exchange rate of 1.1055 as at March 31, 2014
SUMMARY OF FIRST QUARTER FINANCIAL RESULTS
The Company's unaudited consolidated financial results for the quarter ended
March 31, 2014, together with management's discussion and analysis in respect
thereof are available on the Company's website at www.platinoenergy.com and
under the Company's SEDAR profile at www.sedar.com.
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SELECTED FINANCIAL INFORMATION
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(US$000s, except shares and data per Three Months Ended Three Months Ended
share) March 31, 2014 March 31, 2013
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Net Loss (1,523) (1,235)
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Basic and diluted net loss per share ($0.02) ($0.02)
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Weighted average shares outstanding -
Basic and Diluted 69,492,164 67,942,164
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Expenditures on E&E Assets 449 1,991
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As at (US$000s): March 31, 2014 December 31, 2013
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Cash and equivalents, and short term
investments 52,975 54,659
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Working capital surplus 51,592 53,564
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Long-term debt - -
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Total assets 111,178 112,302
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Common shares 69,492,164 69,492,164
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ANNUAL GENERAL MEETING VOTING RESULTS
At the annual general meeting of shareholders of the Company, which took place
in Calgary, Alberta on May 14, 2014, all of the nominees proposed as directors
and listed in the Company's information circular dated April 11, 2014, were
elected as directors of the Company.
All other resolutions brought before the Meeting were approved by shareholders,
including the appointment of Deloitte LLP as auditors and re-approval of the
Company's stock option plan.
CORPORATE PRESENTATION
Platino has posted an updated corporate presentation regarding its assets and
operations on its website at www.platinoenergy.com.
About Platino Energy Corp.
Platino is a Calgary, Alberta headquartered resource company engaged in the
exploration for, and the acquisition, development and production of hydrocarbons
in Colombia.
Advisory Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of
applicable securities laws. The use of any of the words "will", "plans",
"expects", "estimates", and similar expressions is intended to identify
forward-looking information concerning the Company's future operations and
performance including, but not limited to: the re-entry of the Coati-1 well;
determination of the production potential of Platino's assets; the suspension of
exploration activities on the Coati Block pending the Company's environmental
license application in respect thereof; future exploration activity and drilling
program, including the Block Activity Summary; regulatory applications; future
G&A expenses; estimated year-end 2014 cash position.
The forward-looking information in this news release is based on certain key
expectations and assumptions made by Platino. Although Platino believes that the
expectations and assumptions on which such forward-looking information is based
are reasonable, undue reliance should not be placed on the forward-looking
information because Platino can give no assurance that it will prove to be
correct.
The forward-looking information in this news release is subject to known and
unknown risks and uncertainties and other factors which may cause actual results
to differ materially from those expressed or implied in the forward-looking
information. Such risks, uncertainties and factors include, among others: risks
that Platino will face unbudgeted expenses or payment obligations that would
affect its year-end cash position; the nature of the exploration and development
activities on Platino's assets; risks that actual operating and capital costs
will be greater than expected; risks as to the ability of the Company's industry
partners to satisfy their obligations under their agreements with the Company,
as well as other difficulties encountered during the exploration for,
delineation, development and production of oil. As a result of the foregoing,
readers should not place undue reliance on the forward-looking information
contained in this news release. Readers are cautioned that the foregoing list of
factors is not exhaustive.
Additional information on these and other factors that could affect the
operations or financial results of Platino are included in the Listing
Application (Form 2B) of Platino filed with the TSXV, which has been filed with
applicable securities regulatory authorities and may be accessed through the
SEDAR website www.sedar.com. The forward-looking information contained in this
news release is made as of the date hereof and Platino undertakes no obligation
to update publicly or revise any forward-looking information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Platino Energy Corp.
In Bogota:
Tomas Villamil
President & Chief Executive Officer
+57 (1) 235-0007
Andres Cuenca
Controller & Interim Chief Financial Officer
+57 (1) 235-0007
In Calgary:
Tyler Rimbey
Vice President, Business Development
+1 (403) 262-6046
www.platinoenergy.com
(TSXV:PZE)
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