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

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)

You can listen to Greg Smith (the Chairman) speak about PELE on the link below, this was from Tuesday of this week.

http://homepage.ntlworld.com/susan.shirley1/tu/pic/PELEup.wav

Is the price being forced down to encourage buying, or are they letting institutions in.

Looking strong, and still at this level very undervalued.

As always, value will out, so just a case of being patient.

From AFN :

blackbear - 21 Dec'06 - 11:52 - 885 of 885

Robin Amlo from Moneyextra.com speaks of Petrolatina on winnifred T.V , another bullish analyst with more credibility than most.

Small Audio file

http://homepage.ntlworld.com/susan.shirley1/tu/pic/robinamlo.pele.wav

Hi PP.

I see you have an interest in here, normally I would look deeply at this because of your interest but this has been heavily ramped on many threads by some idiot on ADVFN.

I therefore abstain.

If anything needs to be ramped so much, there has to be an ulterior motive or reason, and I deduce the unramped ones bear the research you are obviously doing here.

I think the ramping has been a very big turn off over there.

You must have seen it and despair?

Hi PP, from t1ps - EK's diary. Simon C has had a recent telephone conversation with Greg Smith, is re-assured and remains long, as do I. :-)

Thanks silvermede.


Do not forget to get your 5 top picks for 2007 into the Stock Challenge competition.

Link below, click on the "Entry Form" tab, and then "2007 Annual"

http://www.stockchallenge.co.uk/sc/index.htm


Happy New Year to All

Hi again PP, just seen your link for silvermede about stockchallenge. Hope you dont mind, but I'd never seen or heard of this before, so I've used it and entered both Jan 2007 plus annual 2007 for a bit of fun.