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

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.

They snuck this bit of info into the resignation RNS from 1 Feb:

'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'

The Guardian:

Latin America's oil and gas sector is within traders' sights on Aim. Shares in exploration and production group PetroLatina rose 4p, or 16.7%, yesterday to 28p after it reported gas flow from its Seraf well in Colombia at the higher end of expectations. Analysts think there is further to go.

House broker Seymour Pierce has a target price of 52p and rates the stock a "buy". It argues PetroLatina's shares are trading at a discount to the company's core net asset value. PetroLatina is starting work on surface facilities and a 3.5km trunk pipeline to tie in to the main Colombian gas infrastructure and expects the first commercial deliveries by the summer. The next news to watch for is due in two to three weeks, when PetroLatina provides more detailed test results from the well.

Ambitious 70p price target?

http://lemminginvestor.intellicontact.com/test

Ambitious 70p price target?
http://tinyurl.com/3yu6r5

The interesting thing now is the results from reservoir testing on the Serafin Gas Well. Previous estimates of between 4 to 8 Bcf were based on estimates from some time ago, when in fact they had little interest in doing it properly as it was un-economic at that time.

We might be in for our "somewhat larger" surprise in a couple of weeks, lets hope so, an upgrade of reservoir size to above 8 Bcf would go down nicely.

Seems to be some demand today.

L2 3 v 3 @27/30

On line limits :

Buy 3966 @ 30.85

Sell 100K @28.63



L2 now 4 v 2 @28/31 and all blue

I got in first thing, for the moment (at least) it looks like a good move...

Major Revenue Producing Assets :

a/Colombia Rio Zulia - Ayaccucho Pipeline - Tariff

At acquisiton this pipeline had throughput of 2,800bopd and was valued at 10m US$. The throughput will now in time increase to near 25,000 bopd, and therefore the value of this asset should soon be around 85m US$ sometime in H2 2008.

b/Colombia PDN Fields : 500 bopd per day.


Firm Plan of Expansion of Revenue Production :

a/H1 2007 Colombia Serafin Gas Well
b/2007 Colombia PDN field output increase upwards from present 500bopd


Potential upside

a/Guatemala Atzam well produces (2007)
b/Colombia La Paloma field find and production (07 and/or 08)
c/Colombia Midas field find and production (07 and/or 08)
d/Colombia additional gas wells at Serafin (07 and/or 08)
e/ Guatemala Tortugas workovers (07 and/or 08)
f/ Guatemala Las Casas farm out (08)
h/ Colombia PDN TEA upgrade to exploration status (07) and drilling (07 and/or 08)