flow rates imminent.10X bagger

PELE has a lousy management...that's what the matters.

MoneyAM
PetroLatina Energy's share price jumped 23.8% to 26p by mid -afternoon following the announcement that its Colon-1 well in Columbia has signficant potential in terms of the expected oil production rate.

The well is expected to produce above 1200 bopd which would result in a significant uplift to the Company's existing production.

Juan Carlos Rodriguez, CEO of PetroLatina, comments: "We are pleased to note that the results of the Colon-1 pressure build up test appear to confirm our earlier positive view regarding the potential impact of this well on PetroLatina's near term production rate.

"This drilling success will not only greatly supplement the Company's production volumes but will also allow for development of the La Paloma field which has several additional promising drilling locations. It will also result in an increase in the Company's reserves in due course.

"The proximity of this well to our existing and underutilised production facilities will allow us to monetize this discovery in the short term."
cyril

Newsflow increasingly more positive, sp seeing levels not reached for many many months.
2517

Is this well off peeps radar or what? Gr8t news from a well undervalued company imo. And crap volumes `HELLO` Get in and get some!! RAMP RAMP RAMP dyor 8-)

I feel that at 234000 vol, it's not that exciting, am I wrong?

Powered by IST's

ZZZZZZZZZzzzzzzzzzzzz..........

Wake up martinl2 annual results out and the market like them.
2517

Nice :)

Been a strong performer since annual results, and off to a terrific start for the week.
2517

Good drilling news, nice increase in production & sp.
2517

Very nice update and with so much to come too.

Surprised this has only risen 18% so far from the dip but can't complain.

Can't believe this is still under 20m cap.

I can see 60p being challenged within weeks and 1 not that far off.

AGM presentations on website:

http://www.petrolatinaenergy.com/documents/2009_AGM_Presentation.pdf
http://www.petrolatinaenergy.com/documents/2009_AGM_Technical_Review.pdf

Very interesting reading.

PELE knocking a few in at last, another 2 successful wells making a total of 6 with possibility of more to come. Very promising.
2517

Excellent result and so much upside,plrased with myself as i boight into these last friday.
cyril

Gr8t news, like you say cyril loads of upside. Lucky enough to get in earlier in the year at 20p.

Another impressive RNS from Pele.

The enormus potential slowly being reconised,at present 52.5p.
cyril

An excellent summing up of PELE and its potential,nicked from another board.

Last weeks RNs was a bit of a hidden blockbuster, and it doesnt even have a thread at stuckupedia.

So what do we actually have ?

At AGM time we had production net of 1025 bopd.

LA-11 170 bopd
LA-12 80 bopd
LA-14 200 bopd
Colon-1 600 bopd

Total 1050
Reference: http://www.petrolatinaenergy.com/news.php?n=150&o=0

And how does that change with this RNS ?

LA-12 fracced to 300 bopd
Chuira-1 180bopd natural rate before problems which should be restored after workover.
Colon-1 stable at 400 bopd
Colon-2 looks similar to Colon-1 testing to start in 2 weeks my estimate 400 bopd
LA15 & 16 to be drilled next in know oil pay sands

So if we make the assumptions (which look reasonable to me) that:
Chuira workover works.
Colon-2 produces at 400 bopd
LA15&16 comein at 200 bopd

Then by the end of the year we could have:
LA-11 170
LA-12 300
LA-14 200
LA-15 200
LA-16 200
Colon-1 400
Colon-2 400
Chuira-1 180

Total = 2050 i.e. double the current production.

With PELE profitable at 25USD per barrel and assuming a current POO of 65 USD we have 40 USD of profit so 40*2050*365 = 30m USD profit annualised 45.5m shares in issue and ex rate of 1.6 gives 41p per share of profit vs an sp of 50p !!!!

And that is just from the oil

As for Serafin proven gas that is about to be connected to the grid:

14 mmcf/day
US$5.00 per thousand cubic feet
= 14*1000*5*365 = 25.5m USD pa
PELE 25% interest and assume production rate at half of testing
PELE annualised revenue = 3.18m USD
Ex rate 1.6 = 2m GBP
45.5m shares in issue = 4.3p
Assuming P/e of 10
The serafin gas production, annualised, fully covers the current sp.

Lots of assumptions in the above I know, but ....

And what of the RZA pipeline ?

It had a last reported throughput of 4000 bopd.
PetroLatina receives $1.60 per barrel transported from the Tibu field
and $2.64 per barrel transported through the Zulia Field.


And for the future:
Downhole pumps to further increase rates.
7 additional wells at/around Colon
Independent reserves report due this year
Pipeline throughput increases
Serafin gas sales to start in Q4

I know people talk about no-brianers a lot but if this isnt a no-brainer then I have no brains.

http://www.petrolatinaenergy.com/

This should 10-bag on the end of year oil production alone, without the pipeline, the gas or the potential !


Excuse me,but you've forgotten "reduced drilling costs"for starters:-)


Great summary - and if anything I believe you are probably being a tad conservative on year end oil production figures.

It looks like we are on a p/e of around 1 for next year.

I suspect that once the TOGI loan note/share issue is out of the way, following a fundraising, then we could see a really significant increase in the share price.

Happy for this to stay a "quiet" share for now whilst all the noise stays on the likes of GKP, ROS etc.

Very exciting potential, and a quick look at the 5 year share price graph shows what might just happen.

another plus..

favourable terms secured from the Agencia Nacional de Hidrocarburos ("ANH") whereby the royalty is 8%, no "high price" or "windfall profits" formula applies until 5 million barrels have been produced and there is no state back in right.

cyril