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

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.


***********************

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 :)

*****************************

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.

Good news

A nice email from Nick Gay on his departure, which he has sent out to everyone, copied here for reference of those who were not in contact with him :


"I am writing to thank you for support over the last two and half years. It has been a great pleasure working with you.

I have always enjoyed the questions and the various debates.

I would also like to take the opportunity of commenting on my decision to leave at this stage.

The last few months have seen significant steps forward in the development of PetroLatina. The Company has been repositioned into Colombia , whilst maintaining the ultimate potential of the licences in Guatemala . A sound Colombian production base with strong growth potential has been obtained. In addition, a high quality exploration acreage position has been assembled on which work is progressing. Similarly, as the benefits of the Colombian strategy have become apparent through projects such as Serafin and the underlying value of the pipeline, the share price has begun its road to recovery.

At the same time, I have also been considering my position. I have come to the conclusion, this is the opportune time for me to step down as CEO. This I have done and I will now be pursuing other opportunities.

As from 1st February, 2007, I will be joining a private company called Compact GTL. This has developed a flexible and scalable process to convert gas to syncrude. It is currently seeking to commercialise this process, which enables the development of oilfields by solving the associated gas disposal problems in remote and deepwater locations. As you will appreciate the potential is enormous. For more detail, you may like to visit Compact GTLs website www.compactgtl.com .

I believe we have achieved what we set out to do in 2004, which was to build an oil and gas company in Latin America . This has been done despite the difficulties encountered in Guatemala . Today, PetroLatina has a sound business built around the assets in Colombia and one which has the potential to grow steadily over the next few years.

Again many thanks for your support over the last two and half years. In future I can be contacted either on nicholasgay@compactgtl.com or Nicholas.gay@dial.pipex.com

Nicholas


Nicholas Gay

PetroLatina Energy
27 Berkeley Square
London
W1J 6EL
Phone + 44 (0)20 7297 4360
DDI + 44 (0)20 7297 4362
Fax + 44 (0)20 7297 4370
e-mail: nicholasgay@petrolatinaenergy.com"

Ideal time for a Serafin or Atzam-2 update would be just ahead of this, but I would not count on it.



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

Up 4.5p in 8 minutes, not bad.

Excellent news...Strong Buy now.


Petrolatina Colombia well tests at higher end of forecast; sees early cash flow
AFX

LONDON (AFX) - Petrolatina Energy PLC said initial production testing results at its 50 pct-owned Serafin Well No 1 in Colombia are 'at the higher end of expectations', adding that it expects first commercial gas deliveries late in the second quarter of 2007.

It added that the project offers early cash flow and is expected to 'materially increase' the company's revenues from its Colombian operations.

The well flowed at at 14 mln cubic feet per day of gas, Petrolatina said. Completion of the final part of the project - building a pipeline - is expected early in the second quarter of 2007, and the estimated cost of development is 1.36 mln usd, about half of which will be borne by Petrolatina from available cash resources.

Chairman and chief executive Greg Smith said: 'The completion of this extremely positive test and the resultant early cash flows that it will generate, coupled with the initiation of the seismic shoot on the Midas and La Paloma exploration blocks, put our company in a strong position to continue our growth in Colombia.'

newsdesk@afxnews.com

jro/rar

Nice timing for the forthcoming Oilbarrel.com presentation on 22 Feb 07. :-)

By my calculations, please correct me if I have got it wrong, but think revenues to PELE of between $US 6 - 12 m over life of well, based upon $3 US per 1,000 cu ft,
and producing 14M Cu ft a day = $US 42,000 a day.

Sarafin will generate $42,000 per day, 50% of which goes to Petrolatina. This is around $7.5m per year to PELE, not over lifetime of the well.

I'm in.

Seems to be dropping back a bit. If this is worth $7.5m p.a. witch equals 3.825m approx. If you said 10years profit was the price to pay for the company then this find would add 38.25million to the market cap, raising it to approx 65.69million. This would be worth 59.85p per share I believe.

The objective capital report, linked to in the header, valued PELE at 34p. This included Serafin at just $3.6m. Now that high flow rates have been released, this value must be raised substantially.

On known info, the well is unlikely to last 10yrs, so perhaps a multiple of 3-4 would be more appropriate.