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

Averaged down to 25p..........hope we are currently seeing the bottom.....certainly prospects look good enough!!!

Grateful for any feedback from the Proactive One2One Forum with PELE this evening from any attendees. Hope its fruitful.

Post from AFN summarising the presenation last night :



Cerrito - 26 Oct'06 - 12:24 - 529 of 531


The following is what I picked up last night with a clarifying call with the company this morning.
I see no reason to sell except to lock in my considerrable losses for cgt purposes and am still pondering whether to increase my holding.

I am assuming that the handoutt we were given last night corresponds to what is on the website which I have had difficulty opening.

Guatemala

Atzam ready to roll with the work over with a further short delay on Tortugas while they negotiate with the villagers and move the workcamp. You will note that Tortugas well work over scheduled to start in Dec in the charts.

Cash Position

Told that Capex will be lighter in the first quarter 07 than the present quarter so will not continue to loose US1m a month on average..Q4 cash loss of $3m also impacted by convertible loan repayment of $410k. Surprising to me that Guat capex is so high ie $2.3m in quarter.
They say that Serafin should be delivering gas by 4 07..payment terms not exactly defined yet but my interpretation of what they said is that if the $600kinvestnment has a 2.5month payback then by say the end of September at the latest they should have received a cash flow post expenses of same $600k.
They are anticipating having resolution on the PDN contract extension at turn of year which would trigger the $13m payment if successful; were told that they have an outline( my memory is that was the word used) agreement with Maquirre to fund that or part of that(amount not specified) on a long term basis. Note that $7m bridging loan has not been repaid
The cash position looks tight especially when it is not clear that they will be getting any revenue from Guat in say the first quarter 07.
Third quarter 06 cash flow was: start$4.6m; PDN income $2m; Fundraising $9.8m. The cash outflow was $3m op expenses; $3.5m capex; $0.5m PDN acquisition fees and $1.5m payment of creditors leaving us with starting cash 1 oct 06 of $7.8m
Big picture anticipated capex expenditure for 2007 is that for the first three quarters it will be relatively light and then picking up in the fourth quarter as Colombian drilling starts.

Other

Comment made that Serafina a biogeneric(?) gas field which therefore means it is small but normally if there is one there is another nearby.
Rig rates in Colombia starting to weaken abit and comfortable with rig availability when they start to drill at end of 2007.
shallowness of Guat drilling contrasted with that of Col drilling(Midas,La Paloma) up to 14000ft.

This is an extract from EK's diary (at www.t1ps.com ) on Friday 3rd Nov :


"................I had a chaT with my man the other day and Petrolatina (PELE) is absurdly cheap. Its shares fell the other day as it drilled a dry hole. But this hole was always going to be dry. It was an obligation well. With that out of the way the real fun can now begin and my target is 50p...."

10th Nov 06

http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1163125138&id=0&feed=oilbarrel_en&body=0&type=

Next news should be Atzam-2 workover by the way, it will take around 2 weeks to complete, and should be starting around now. Therefore news on that late this month or early next. The market says it will fail, by its pricing of PELE, therefore it could either confirm that, or offer some good upside.

RNS Number:7958M Petrolatina Energy PLC
28 November 2006
PetroLatina Energy Plc
("PetroLatina" or the "Company")

SERAFIN GAS DEVELOPMENT

Petrolatina Energy Plc ("PetroLatina" or the "Company") an independent oil and
gas exploration, development and production company, focused on Latin America,
is pleased to announce it has initiated development of the Serafin gas
accumulation in Colombia as expected.

RATIONALE & CASH FLOW
The Serafin gas accumulation was discovered in the early 1990's and tested at
flow rates of up to 16 million cubic feet of gas per day. Recent increases in
the price of gas in Colombia to $2.50 / $3 per thousand cubic feet mean the
project offers strong short term cash flow and economic returns, with projected
pay back in 5 months. The first commercial deliveries of gas are expected in the
second quarter of 2007. The revenues from this project are expected to increase
PetroLatina's annual cash flow substantially from its Colombian operations.

PRODUCTION POTENTIAL
Based on the above test rates and pressure data, gross reserves are estimated
between 4 and 8 billion cubic feet of biogenic gas. The plan is to re-enter and
work over of the well in January 2007.

PetroLatina believes there could be additional similar biogenic gas
accumulations on the licence and is currently conducting studies using its
existing 3D seismic coverage to identify further drillable prospects.

PetroLatina has a 50% interest in the project.

Further information on the Serafin Gas development can be found in the
'Background Information' section overleaf.

Nicholas Gay, President and CEO, commented:
"The initiation of the Serafin Gas accumulation is a key milestone in the
Company's development. We are now firmly focussed on Colombia where we already
have a revenue stream from oil production of approximately 500 barrels of oil a
day and pipeline tariff income. The Serafin gas development has proven test
rates and will provide the Company with additional early cashflows as well as
substantially increasing our revenues from Colombia. Management is pleased to
see the Company moving ahead as planned and we are excited about the further
developments over the coming months."

REVIEW OF RELEASE
This release has been reviewed by the Company's Chief Operating Officer (Mr. J.
Scott), and the Chief Geologist (Mr. K. Dean who is a Fellow of the Geological
Society, London).

Messrs Scott's and Dean's biographies are on the Company's website, which can be
found at www.petrolatinaenergy.com .

Has to be good news but a whole lot more needed to get the sp moving upwards.
2517

RNS Number:5869N
Petrolatina Energy PLC
11 December 2006



PetroLatina Energy Plc

("PetroLatina" or the "Company")



Rio Zulia - Ayaccucho Pipeline Update





Petrolatina Energy Plc ("PetroLatina" or the "Company") an independent oil and
gas exploration, development and production company, focused on Latin America,
is pleased to announce that EcoPetrol SA (the Colombian State oil company) and
PetroBras Energie Internacional, (one of the world's leading oil and power
companies) have signed an agreement to develop the Tibu Field in Northern
Colombia, which is expected to lead to a significant increase in the flow of oil
through and revenue from the Company owned Rio Zulia Ayaccucho pipeline (the
"Pipeline").



Tibu Field



Under the terms of the announced contract, the partners in the project will
invest US$40 million over the next two and a half years and, accordingly,
estimate that oil production from the Tibu Field will rise to 15,000 barrels of
oil per day ("bopd") from its current level of 1,800 bopd. Under the terms of
the existing transportation agreement, this would increase PetroLatina's net
income from the Pipeline to US$6.0 million from its current level of US$1.5
million per year.



The development agreement is also expected to lead to confirmation of reserves
in the Tibu Field of an estimated 100 million barrels.



Rio Zulia Field



In addition to the above agreement, Ecopetrol SA have also commenced an extended
exploration drilling programme near their Rio Zulia Field and in close proximity
to the Pipeline. This drilling programme is expected to commence in 2007 and if
successful is also expected to increase significantly the flow of oil through
and revenue from the Pipeline.



The Pipeline currently transports an average of approximately 2,800 bopd from
the Rio Zulia and Tibu Fields in Colombia.



Rio Zulia - Ayaccucho Pipeline



The Pipeline was acquired as part of the acquisition of Petroleos del Norte
S.A.("PDN") in June 2006.



The Pipeline has a design capacity of 25,000 bopd. Success during the initial
development phase of the Tibu field will bring the pipeline close to full
utilization.



Based on an external evaluation carried out at the time of the acquisition of
PDN, US$10 million was attributed to the value of the Pipeline given its
prevailing throughput. The underlying value of the Pipeline will therefore
increase with the additional throughput usage.







Nicholas Gay, President and CEO, commented:



"At the time of the acquisition of PDN, we saw the Pipeline as a hidden source
of value. One of the keys to unlocking this was the development of the Tibu
Field. This development and the recently announced Serafin Gas project starts to
highlight the true worth of the PDN acquisition to create early revenues and
long term cash flow for the Company."



-ENDS-

This is excellent news especially if it is confirmed re the 100mbo reserves at the Tibu field, this gives visibility of earnings just from the pipeline way out into the future, and the value of the pipeline as an asset will have soared.
2517

Yes, good news.

If additional cash flow can sustain development activities, this could rise sustantially from here imo. Market Cap of just 22M ......I'm in! DYOR

This is a STRONG BUY now at 20p.

small section in the Times today, specualtive punt could be onwards and upwards from here IMO, any price targets floating around?

http://www.stockmarket-channel.tv/default.asp?eid=56

Quotes from Greg Smith.

Pipeline alone worth more than m/cap

PELE value should be worth 180 million dollars.

Profit for 2007 12 million dollars, which includes 6 million from pipeline.

PELE valuation ludicrous right now.
Chairman said every well drilled to date showed oil, they were having major problems and needed a larger partner to get it out but every one involved confident of at least 30 million barrels down there.


Well worth a listen.

.

I make that an sp around 100p and a pe of about 4, that would be nice, or maybe it's wishfull thinking.
2517

Well, its correct, fair value is around 100p.........

That should also be the target of any takeover offer.

It certainly looks like the pipeline is going to be a cash cow for a long time to come.
2517

It does indeed.

6m a year revenue, pretty much fixed from 2008 onwards. That alone would be worth around 36m $ if you sold it, based on 6 times revenues (EG the pipeline alone is worth more than the market cap of PELE at the moment)