Web Site : http://www.petrolatinaenergy.com


SUMMARY of PELE as of 24th Jan 2008, please see post 190 on page 10


Link to Page 10 of posts

Media comment, click http://www.proactiveinvestors.co.uk/blog/index.php?entry=entry070731-160356

Interims out

http://www.investegate.co.uk/Article.aspx?id=200709260701424915E


Read much better than the prelims did.

Given Rudolph has now made the company viable, it does offer some strong upside should the La Paloma well strike commercial oil.

May indeed now be well worth a speculative punt ahead of that first drill.

I agree, potential upside, have been holding for a while, but dare i say, contemplating an average down...


LONDON (Thomson Financial) - Petrolatina Energy PLC narrowed its first-half pretax loss and said a stable production of about 450 barrels per day, an incremental production after the extension approval in the Tisquirama licence and the future Seraffin gas production create an upside for the company.

The AIM-listed oil and gas exploration company posted pretax loss of 2.9 mln usd compared with 3.4 mln usd a year ago.

Revenue rose to 3.1 mln usd versus 421,000 usd a year earlier helped by the acquisition of Petroleos del Norte on June 16, 2006.

TFN.newsdesk@thomson.com ash/slm

Update from GE&CR today. It highlights the upside potential, while correctly taking notice of the present risks. If an acceptable solution to the licensing issue is done (eg not too much given away) and the 2nd payment is indeed from debt........then the SP can start to rerate upwards. Risk / potential reward play it is, thats for sure.


"PetroLatina, the AIM listed oil and gas exploration and production company with operations in Colombia and interests in Guatemala, released its results for the six months to 30th June 2007 on September 26th. It reported a gross profit figure of $1.926 million, up from 0.363 million, on a turnover figure of $3.11 million, up from $420,000. Overall, PetroLatina reported an operating loss of $2.926 million as a result of administrative costs which increased from $3.953 million to $4.776 million. Since the period end the company has closed its London office and reduced the senior managements remuneration which will save $2 million per annum.

The companys outstanding debt with Macquarie Bank was approximately $5.3 million at the period end and its cash balance was $2.22 million, down from $4.655 million 12 months previously. At the period end PetroLatina had net assets of $16.787 million, a sharp fall on the $47.3 million at the end of the first half of 2006. The significant decrease in net assets is principally attributable to the disposal of its Guatemalan assets for just $4 million in cash in May this year, following discouraging results. PetroLatina currently holds a 20% retained interest in the first three wells to be drilled in Guatemala.

The company is now focused on Colombia, where it seeks to capitalize on the opportunities presented by the deregulation of oil and gas markets and where it owns some exciting exploration licenses. PetroLatina enjoys stable production of 450 barrels per day plus incremental production after the extension approval in the Tisquirama License; it should enjoy future gas sales from the Seraffin field and is drilling two exploration wells shortly. The company holds 50% and 25% interests in the Los Angeles and Santa Lucia fields on the Tsquirama license respectively, and a 100% interest in the Dona Maria field. The Seraffin gas project is ready to commence production, the last outstanding delay is the gas pipeline owner needing to be satisfied with Ecopetrols commitment to underwrite the quality of the gas produced.

Elsewhere, PetroLatina is currently in the process of acquiring new seismic data over the Midas block following its encouraging first results, with the view of drilling an exploration well to 8,000 feet. This follows the acquisition of new seismic in March/April this year over the La Paloma block, where results have identified a very large promising 4-way dip closure. The company is expected to follow up by drilling an exploration well at total depth of 10,000 feet, within the next 3-4 months. The company acquired an 85% interest in Midas and an indirect interest 80% interest in La Paloma in March 2006. PetroLatina is confident that it will take the project forward.

In addition, PetroLatina owns the Rio Zulia-Ayacucho pipeline in the prolific Catacomba basin, where the company could see increased cash-flow from greater crude oil volumes transportation. The company remains confident in the value of its exploration and production assets in Columbia, following progress made on in-principle agreement to extend the license at Tisquirama with EcoPetrol. It should be noted that no final agreement has yet been signed and concerns on this point remain, in our view, a significant drag on the share price. Even though the company is still negotiating the terms of the extension, MacQuarie bank has agreed to finance a large portion of the development costs associated with this license extension if it is granted.

We believe that the potential value for the companys portfolio, if the licensing issues and financing issues are successfully resolved, is worth at least 48.76 million ($95.1 million) or 42p a share. This includes a minimal value for Seraffin. However given the uncertainty surrounding the company's license position, at 11.5p, our stance remains hold. "

GE&CR often give the wrong advice. I have been caught by their ill advice on Encore Oil (bought at 30p, now 16p), Metal Exploration (bought 45p in August, now 36p, target 88p). By the way Petrolatina now 11p, it was called Taghmen Energy at 60p and the advice then was buy by GE&CR slightly more than a year ago.

hyleo - GE&CR did not say buy TAG. They did come in on PELE (the new name) around 20p with "speculative buy" if I remember. Its not impartial commentary, however this write up on PELE is decent, its notes the upside and the risk.......thats correct.

IF the license extension is done well AND IF the 2nd payment is done via debt - then yes, there really is significant upside available.

I apologize on the 60p price...but it has dropped 50% since the recommendation below.


PetroLatina - Buy at 24.5p (advised by GE&CR on 19th March 2007)

Key Data

EPIC PELE
Share price 24.5p
Spread 23 - 26p
Market cap. 27.9 million pounds
12 month range 16 - 54.5p
NMS 15000
Market AIM
Shares in issue. 114,007,122
Website www.PetroLatinaenergy.com
Sector Oil and Gas
Net debt + deferred liabilities $16.5 million

PetroLatina, formerly Taghmen Energy, is an independent oil and gas exploration and development company with operations in Colombia and Guatemala . PetroLatina is not a pure exploration play but has, via the acquisition of PDN, established production from three fields totaling 500 barrels of oil per day which is generating free cash flow of around $3 million per annum. Moreover, the company owns the RZA pipeline which connects the Rio Zulia and Tibu fields in Colombia . The further development of these fields could potentially push pipeline revenues up from a current $1 million to $6 million per annum over the space of three years.

On the exploration and development side the Serafin Gas development has recently been tested and flowed at the rate of 14 million cubic feet a day. PetroLatina expects to receive an extension to its Santa Lucia and Los Angeles fields within the Tisquerama licence to 2025 early in the second quarter 2007. The current term is to 2009/2011. Following extension the Company will initiate a secondary development stage to these fields to increase oil production whilst selling the gas to local industrial users from the Serafin development at between $2.50 and $3 per thousand cubic feet, a consequence of high local demand. Serafin is expected to produce gas commercially in the second quarter of 2007.

PetroLatina has significant interests in two highly prospective exploration licences in the Middle Magdalena Valley , adjacent to its producing fields in Columbia . Both Midas and La Paloma are estimated to contain 90 million barrels of unrisked recoverable reserves and on a heavily risk weighted basis; we believe that both licences could be worth over $70 million.

The company has cash of $3.5 million, has negotiated debt facilities of $7 million and plans to expand this facility to complete the second stage payment on PDN which is directly tied to the licence extension.

Our heavily discounted and risk weighted NPV calculation of the group's assets leads us to believe that PetroLatina is worth at least 42p a share. On that basis, the shares are currently undervalued and offer a 75% upside. We initiate our coverage with a recommendation of buy.

This comment below came in Sept, 05 but after that Well 3X was shut down and never heard of since...


Guatemalan-focused oil and gas explorer Taghmen Energy said it had found hydrocarbons and one of its prospects and its share jumped 18p to 70.5p. The company said that the discovery was at its well 3X, currently being drilled on its licence 6-93. This was is the first new exploration well drilled on the Las Casas structure since Taghmen acquired the licence. Following initial gas shows at 7,800 feet and oil staining appearing at 8,270 feet, material levels of hydrocarbons occurred at 8,497 feet. This was accompanied by a drilling break and a controlled gas kick with oil shows at surface.

hyleo, well 3X along with all the other Guatemalan assets have been sold off now. PELE is pure Colombia focus now (although they retain a percentage of any future Guatemalan success when those assets ae drilled again, but its a free ride, they pay no costs).


In the interims of 26th Sept - http://www.investegate.co.uk/Article.aspx?id=200709260701424915E - we were told the PDN license externsion should be done it around 4 weeks.

Therefore an update should be expected before say 31st October.

If the extension is on good terms, and if the 2nd payment is via debt (on the back of Serafin) - then I would say PELE is a strong buy. Lots of if's in there, but thats what risk/reward is all about, you don't get possible big rewards unless you risk also losing your money.

Could be a good rise coming later this month, or could be another wobble - take your pick.

A tiny bit of strength showing. All buys lately have been below mid, and now today above mid price. Those X trades must have taken up some of the slack overhang.

Looks to me, IMO, that RB got sold out or did he ???, and that therefore the appointment of JCR will not only "smooth" the license extension but will allow for a "novel" way of dealing with the license extension payment ??? Exciting times ahead either way I am sure.

RB - looks like his hatchet man job is done, and he moves on after cutting out all the crap - was that the original plan ? Only he will be able to answer that.


RNS Number:8924G
Petrolatina Energy PLC
02 November 2007

PetroLatina Energy Plc
("PetroLatina" or the "Company")

Directorate Change and Corporate Update

PetroLatina, the oil and gas exploration and production company focused on
Columbia, announces that Juan Carlos Rodriguez (46), currently President of the
Company's Columbian subsidiary Petroleos del Norte ("PDN"), will become Interim
Chief Executive Officer with immediate effect. He will be joined on the Board by James Joseph May (58) who has agreed to join the Company as a Non-Executive
Director.

Juan Carlos has been President of PDN for several years and is an experienced
oil and gas operator supported by an operational team of more than 40 people.
He is also highly respected within the business community in Columbia.

James May's appointment will give the Company a full-time UK resident Board
member.

Rudolph Berends has resigned today as a Director of the Company effective
immediately. Rudolph has also stepped down from his position as President and
Chief Executive Officer with immediate effect. At the same time, James Guiang
has resigned as a Non-executive Director.

The Board thanks Rudolph and James for their contributions to the Company and
wishes them well in their future endeavours.


Corporate Update

Following Rudolph's action to reduce costs and close the London corporate
office, the Company's focus has been on its cash generating assets in Columbia
and, in particular, negotiations to agree the amount and structure of the second tranche of the PDN acquisition consideration, due upon extension of the
Tisquirama licence.

The Board believes that this issue, and the ongoing development of the asset, is best achieved through its Columbian-based operational team. In addition,
because of Juan Carlos's experience of working in the region, the Board believes that he will be ideally placed to conclude negotiations to extend the Tisquirama licence and to strengthen PetroLatina's relationships with the country's authorities and the Company's Columbian partners.

PetroLatina now expects to make quick progress with these negotiations and
anticipates making further announcements regarding the extension of the
Tisquirama licence; its planned drilling programme; and an updated production
profile before the end of this month. The Company is also in detailed
discussions to secure the financing required for the planned drilling and
development. This facility will enable the Company to enter the second phase of the development programme in Columbia and increase cash flow dramatically.
Further announcements regarding the financing will be made in due course.


James May
James Joseph May (58) has extensive experience of working with natural resource
companies and is currently a Director of AIM-listed TomCo Energy Plc. He has
also served previously as Finance Director of AIM listed London & Boston
Investments Plc and as a non-executive Director of AIM listed Croma Group Plc.
Mr May is also currently a principal of a boutique chartered accountancy
practice, focusing on advising companies on finance raising, mergers and
acquisitions, business strategies and entry onto the OFEX and AIM markets, in
addition to providing general accountancy, tax and audit services. He was
previously a Senior Partner at Horwath Clark Whitehill, a UK accountancy firm,
for 17 years, including 8 years on the Managing Board. Mr May qualified as a
chartered accountant in 1974.


Greg Smith, Chairman and Founder of PetroLatina, said:

"I am pleased to welcome Juan Carlos to the Board as Chief Executive and look
forward to reporting positively on the continuing negotiations regarding
Tisquirama very shortly.

"I believe that PetroLatina has tremendous potential and value. We have
substantial proved, probable and possible reserves, with a firm plan to increase volume through our pipeline and develop and commercialise the reserves. PetroLatina remains a cash flow positive business and is financially secure.

"I am also delighted to welcome James to the Board of PetroLatina and believe
that we are now in good shape to realise the Company's potential and to start
delivering value to shareholders."

Some movement this morning? no RNS and i no longer have access to L2 so difficult to get the picture with delayed trade times...?

Some decent buying volume, something must be up........

Always promised myself, i would buy more and average down upon the first sight of any buying volume, however, not sure i can bring myself to do so, on this share, or any oil minnow, in this current climate...

A few oilers are on the move today, AST, PELE, AFR........might be sign that insti money is coming back into junior oils.........perhaps they see sky high fuel prices in the short to mid term........ ???

Excellent news !!!

Petrolatina Energy PLC
29 November 2007

PetroLatina Energy Plc
('PetroLatina' or the 'Company')

Confirmation of Licence Extension

Extension of key Tisquirama licence for economic life of the fields has been fully ratified

PetroLatina, the oil and gas exploration and production company focused on
Colombia, announces that it has secured the extension of the Tisquirama licence
for the economic life of the fields. Without this agreement the licence would
have expired in 2009.

Under the original terms of the Petroleos del Norte ('PDN') acquisition, a
second cash payment of US$13 million was due upon the extension of the licence.
However, PetroLatina has now reached agreement with the vendors of PDN to make a cash payment of US$7 million and to issue to the vendors new PetroLatina shares to the value of US$3 million. The vendors of PDN now form part of the
operational management of PetroLatina.

As part of the agreement to secure the licence extension, Ecopetrol S.A., the
Colombian state oil company, will increase its participation in the Los Angeles
and Santa Lucia fields from 50% to 60%. The agreed work programme for these two fields now includes six development wells and four exploration wells over the
next two years.

The agreement has been ratified by the board of directors of Ecopetrol. In order
to legalize the agreement, it is necessary to create a joint working team put
together by PDN and Ecopetrol to prepare and submit the licence Amendment to the Hydrocarbon National Agency (Agencia Nacional de Hidrocarburos 'ANH').

PetroLatina anticipates making further announcements regarding its planned
drilling programme and an updated production profile in the coming weeks. The
Company is also in detailed discussions to secure the financing required for the
planned drilling and development. This facility will enable the Company to
enter the second phase of the development programme in Colombia and increase
cash flow dramatically. Further announcements regarding the financing will be

Excellent news !!!

Petrolatina Energy PLC
29 November 2007

PetroLatina Energy Plc
('PetroLatina' or the 'Company')

Confirmation of Licence Extension

Extension of key Tisquirama licence for economic life of the fields has been fully ratified

PetroLatina, the oil and gas exploration and production company focused on
Colombia, announces that it has secured the extension of the Tisquirama licence
for the economic life of the fields. Without this agreement the licence would
have expired in 2009.

Under the original terms of the Petroleos del Norte ('PDN') acquisition, a
second cash payment of US$13 million was due upon the extension of the licence.
However, PetroLatina has now reached agreement with the vendors of PDN to make a cash payment of US$7 million and to issue to the vendors new PetroLatina shares to the value of US$3 million. The vendors of PDN now form part of the
operational management of PetroLatina.

As part of the agreement to secure the licence extension, Ecopetrol S.A., the
Colombian state oil company, will increase its participation in the Los Angeles
and Santa Lucia fields from 50% to 60%. The agreed work programme for these two fields now includes six development wells and four exploration wells over the
next two years.

The agreement has been ratified by the board of directors of Ecopetrol. In order
to legalize the agreement, it is necessary to create a joint working team put
together by PDN and Ecopetrol to prepare and submit the licence Amendment to the Hydrocarbon National Agency (Agencia Nacional de Hidrocarburos 'ANH').

PetroLatina anticipates making further announcements regarding its planned
drilling programme and an updated production profile in the coming weeks. The
Company is also in detailed discussions to secure the financing required for the
planned drilling and development. This facility will enable the Company to
enter the second phase of the development programme in Colombia and increase
cash flow dramatically. Further announcements regarding the financing will be
made in due course.


Greg Smith, Chairman and Founder of PetroLatina, said:

'These agreements secure the inherent value of PetroLatina and allow us to start
planning for the future. I believe the Company has tremendous potential and
value. We have positive cash flow, substantial proved, probable and possible
reserves, plans to increase volume through our pipeline and to develop and
commercialise the reserves.'

Looking for 10,000 barrels a day by end of 2008, and the new man in charge has put in loads of his own money as well. Could get exciting if all this comes off..........



http://www.growthbusiness.co.uk/news/city-news/263549/petrolatina-wins-time-and-money.thtml

PetroLatina wins time and money

Hard-pressed Colombian oil explorer PetroLatina has clinched a 15 million refinancing and won a key licence extension.

The AIM-quoted company, which lost 1.5 million in the first half of this year, says it has slashed head office costs and claims to be on track to produce 10,000 barrels of oil a day by the end of 2008. This is claimed now to be possible because PetroLatina's state-controlled partner Ecopetrol has obtained an indefinite extension for its Tsquirama licence and the New York-based Casimir banking group has arranged a 15 million refinancing package.

According to PetroLatina, the new funding, in the form of a 13 per cent to 15 per cent one-year loan convertible into shares at a ten per cent premium to market price, will enable the drilling to proceed at La Paloma in Colombia, with claimed potential oil reserves of 16 million barrels, and to probe a new well there. Juan Carlos Rodriguez, 46, the Colombian oilman who has newly taken the helm at the London-based company and personally invested 1.5 million, says PetroLatina will begin 'aggressive' drilling at La Paloma within a week.

PetroLatina will then proceed to infill drill at four 'low-risk' wells at Los Angeles on the Tsquirama licence, where Rodriguez expects eight new wells at the Santa Lucia project to treble production to 3,000 barrels a day. The shares, which fell all the way from 72.5p in 2005 to 10.25p last month, have inched up since then to 11.5p, valuing the company at 13.8 million and offer the speculative possibility of further progress if the new package proves adequate and works.

In summary things look quite good.

We have a 10,000 bopd target for 12 months time.

We have La Paloma well spudding next month, maybe even next week.

We have the license extended.

We have the funding issue sorted, and on good terms imv, given that the shares will convert in 12 months time, likely when PELE are producing 10,000 bopd and with the share price much much higher than where it is now, and also, at a 10% premium to the market price at that time. Given the amount of return they are going to get on the money in 12 months (in terms of bopd upside and also exploration upside) paying 15% for the year is not that high imo.

And the new CEO has put 1.5m of his own money into the company, and thats a nice thing to see.

All in all, very positive, and perhaps the start of a rerating over the coming 12 months.

PP 10,000 bopd sounds alot for such a small co, if it comes to fruition then the sp should really improve from it's current low level. Stayed in this all the way down, never mind.
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