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

Well, we should all remember at this stage that the Atzam-2 workover was the most likely to fail of the three (being Atzam-2 workover first and then Tortugas-4 and Tortugas-5 still to come).

So while the price may be rising in anticipation of news, there is a good chance the news coming will be of failure at Atzam-2 ( however of course it could be news thats its been a success, which would transform the outlook of PELE somewhat ).

Hi all, as the song goes, it aint where you start, its where you finish. Some large spreads to overcome but then we must all be fairly confident for the rest of the year in our selections. PP, you and I have three out of the five selections identical.
We must have similar portfolios and targets in mind.

Lets both hope those targets become actual prices then :)

Would be nice.

1 MM up so far today on L2.

Its now 2 v 1 @24/26.5

Actual is :

KBC 24 SEYP 26.5
WINS 24 CANA 28
SEYP 23.5 WINS 28.5
CANA 23 SCAP 29
SCAP 22 KBC 29

Hi PP, just posted a new thread on TMC regarding institutional investments. Would be intrested to know if you know of any more that I may have missed.

Hey mr. blue sky. Nice jump.

LONDON (AFX) - Buyers pursued Petrolatina Energy, 3-1/4 pence better at 27-1/4, after the company upgraded estimated resources at the La Paloma oil field in Colombia. It suspended work on the Tortugas license in Guatemala, however, after failing to secure the consent of the local government.

La Paloma is now believed to be holding unrisked recoverable resources of up to 90 mln barrels, up from the initial estimates of 20 mln barrels, said the group in a statement.

Good news all around, including the "force majeure" on Tortugas :)

Yes, papalpower, do u think this will go up further?

Certainly will over time IMO, maybe not now, but in time this should around 100p.

They have producing assets, they are bringing more production on line and will have good earnings. Thats what the market wants in oil stocks now.

http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1168567220&feed=oilbarrel_en

12.01.2007

PetroLatina Energy Looks Ahead To Better Days As La Paloma Reserves Soar

Things have got off to a flying start for PetroLatina Energy in 2007. Shares in the AIM-listed firm have been heading up since it announced in December the Tibfield development in northern Colombia which is expected to significantly increase the flow of oil through its Rio Zulia - Ayaccucho pipeline.

The 15,000 bpd field, operated by state firm EcoPetrol and a division of Brazils Petrobras, should eventually raise PetroLatinas pipeline income from about US$1.5 million a year to US$6 million.

But this week the company yielded another pleasant surprise, massively bumping up reserves at its La Paloma exploration license in Colombia in the Middle Magdalena Valley.

PetroLatina now believes that un-risked recoverable resources at the site are closer to 90 million barrels instead of the previous 20 million barrels estimate. This gives the company a net 58.5 million barrels to play with, more than four times the earlier figure. The results are formulated on the existing seismic and well database, which are being studied together with the nearby Midas block.

A new seismic acquisition programme across both blocks is set to kick-off this month to further investigate what is now proving to be an encouraging story.

What a difference a year makes. Last year was pretty awful by and large for the group, with share prices sliding through much of 2006. This, despite the acquisition of the Petroleos del Norte assets which form the basis of the current work schedule. The business also includes around 500 bpd of output from three Colombian oil fields - Los Angeles, Santa Lucia and Dona Maria.

Things are also gaining momentum at the Serafin gas accumulation with a work-over rig expected to move into position next week. The initial results from production testing are due in by the end of the month, says Nicholas Gay, PetroLatinas president and chief executive, whio reckons his company is looking at better times in the year ahead.

The revised estimates from La Paloma combined with the news announced previously on the Rio Zulio - Ayacucho pipeline and the forthcoming testing on the Serafin gas accumulation underlines the value of the Colombian portfolio of assets put together in 2006.

PetroLatina is expected to build on this portfolio shortly as it nears completion on three technical evaluation areas also acquired through its acquisition of Petroleos del Norte. An application to extend at least one of these into full exploration licences is expected during the first quarter.

The positive news flow from Colombia is offset to some degree from Guatemala, where the company has been refused access by the government to the Tortugas area of its concession. PetroLatina has declared force majeure at the site with all operations on the license suspended with the exception of the Atzam-2 well.

This is more encouraging with the firm now embarking on clean-up operations with a view to further testing of a work-over well completed at the tail-end of last year. The well encountered a strong pressure regime and oil flowed to the surface, according to PetroLaina, though remedial work on damage to the casing and cement work is necessary before the site can be fully tested.

The outlook has certainly improved somewhat, still sat on a hefty loss but I will bide my time, and look forward to a better 2007
2517

I put these 2 posts on AFN today, so just copying them over for reference.


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PapalPower - 12 Jan'07 - 10:56 - 1057 of 1060


As Atzam-2 had strong oil shows, I'll let you know some more about it.

In 1993 tests after drilling Atzam-2 flowed at over 1000 barrels of liquid per day, the split was between 600 barrels of oil to 800 barrels of oil per day, the additional being water.

The well died after a small amount of flow testing (turning to all water and no oil), this was deemed to be potentially due to bad completion and thus water infilitration. It was suspended at that time, due to low oil prices and not wanting to spend more money on it.

This is why it was one of the wells chosen for workover now that PELE have the license. Now, if the casing and cement damage can overcome the initial bad completion of the well as part of the continuing workover, well things might get interesting. Although I would still say be expecting failure on Atzam-2, there is a chance for significant upside :)

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PapalPower - 12 Jan'07 - 13:40 - 1060 of 1060

The other interesting note is that the 200bopd for a Guatemalan well was based on Totugas 4 and 5. These were suggested to be worked over and flowed at 200 bopd.

Atzam-2 was considered interesting enough to work over, but nothing firm.

Now, could Atzam-2 surprise, and in fact replace the potential total output from Tortugas now........its a scenario that could happen, so worth a note, even if I am still weighted towards Atzam-2 being a failure, perhaps.

Jan 2007 Update :

http://www.objectivecapital.co.uk/petrolatina-updatejan07.pdf

Thursday 22nd February 2007, 9.00am to 1.00pm
followed by buffet luncheon

Venue: The Brewery, Chiswell Street, London, EC1

In association with BDO Stoy Hayward

The companies presenting are:

Afren Plc

Geopark Holdings Ltd

Gulfsands Petroleum Plc

Heritage Oil Corp

PetroLatina Energy Plc

Salinas Energy Ltd

http://www.oilbarrel.com/home.html

Petrolatina Energy PLC
01 February 2007

PetroLatina Energy Plc

('PetroLatina' or the 'Company')

MANAGEMENT CHANGES

PetroLatina Energy Plc (AIM: PELE), an independent oil and gas exploration,
development and production company, focused on Latin America and currently
producing approximately 500 barrels of oil per day, announces the following
management update.

Nicholas Gay, Chief Executive Officer, has advised the Company he will be
stepping down from the Executive Board to pursue other opportunities but has
agreed to remain as a Non-Executive Director, with effect from 31st January
2007.

Mark Patterson has been appointed to the Company's Board as an Executive
Director with immediate effect. Mark has over 25 years experience in the oil and
gas industry throughout the Americas, which significantly strengthens the
management team in Central and South America.

Mark is Managing Partner of Calypso Energy LLC, an independent exploration and
development company and part of the Calypso Energy group of companies he
co-founded in 2000.

Mark was previously Chief Executive Officer of Compania General de Combustibles,
one of Argentina's premier oil and gas companies with more than $620 million of
assets. During his decade of living and working in South America, he oversaw
upstream and midstream projects in Argentina, Brazil, Bolivia, Ecuador,
Guatemala, Uruguay, and Venezuela. A geophysicist by background, he holds a
Bachelors degree in Geology from the University of California and an MBA from
Houston Baptist University. Mark is fluent in the Spanish language.

Greg Smith, Executive Chairman of PetroLatina since its IPO in January 2005, and
Jay Scott will in the interim period take on the CEO's responsibilities. Jay,
COO, has been appointed Interim President and COO of Petrolatina in order to
take on the additional responsibilities. The Board of Directors have appointed
executive recruitment company, Spencer Stuart, which specialises in Latin
American oil & gas executives, to find a permanent replacement CEO.

Greg Smith, Chairman of PetroLatina, commented:

'Mark has a great deal of experience in South America, not only in terms of the
regional relations but also in day to day production that will be a significant
benefit to the future development and growth of PetroLatina.

'At the same time, we are sorry to see Nicholas step down from CEO and wish him
well in his future endeavours outside PetroLatina. He leaves behind a sound
operating platform and a Company that is well positioned for solid growth in
2007'.

'Additionally and by way of an operational update, the initial phase of the
workover at the Serafin gas accumulation in Colombia has been completed as
expected. We now anticipate the accumulation to be somewhat larger than had
initially been expected. Production testing will now commence and we expect this
to be finalised during February 2007. This project offers immediate cash flow
and economic returns and we anticipate it to materially increase the Company's
annual cash flow from its Colombian operations. PetroLatina has a 50% interest
in the development'

-ENDS-

'Additionally and by way of an operational update, the initial phase of the
workover at the Serafin gas accumulation in Colombia has been completed as
expected. We now anticipate the accumulation to be somewhat larger than had
initially been expected. Production testing will now commence and we expect this
to be finalised during February 2007. This project offers immediate cash flow
and economic returns and we anticipate it to materially increase the Company's
annual cash flow from its Colombian operations. PetroLatina has a 50% interest
in the development'

"somewhat larger".......thats nice :)

Intriguing statement today, one of the upsides of Serafin, apart from this well coming off and producing quick cash flow, was always the potential for further expansion, as in this field had not been properly exploited and the potential exists for a rapid developement of a number of wells, and ultimatly a rapid increase in cash flow.

Will be interesting to see how this comes off.