CALGARY, Nov. 26, 2015 /CNW/ - Petroamerica
Oil Corp. (TSX-V: PTA) ("Petroamerica" or the
"Company"), a Canadian oil and gas company operating in
Colombia, is pleased to announce
the financial and operating results for the three and nine months
ended September 30, 2015, and to
provide an operations update on the Company's activities in
Colombia.
Copies of the Company's Management Discussion and Analysis
('MD&A') and Interim Financial Statements have been
filed with the Canadian Securities Regulatory authorities and can
be viewed or downloaded at the Company's website at
www.petroamericaoilcorp.com or at www.sedar.com. The
financial results for all periods presented are in United States dollars unless otherwise
indicated.
Financial and Operating Highlights:
- Announced the signing of an arrangement agreement with Gran
Tierra Energy Inc. ("Gran Tierra") whereby Gran Tierra will
acquire the 100% of the Company's outstanding shares. This
arrangement is expected to close around the end of January,
2016;
- Completed the acquisition of PetroNova Inc, increasing the
Company's interest in the highly prospective PUT-2 block as well as
acquiring operatorship and an additional 3 blocks with significant
potential;
- Announced a private placement of up to $20 million by way of secured debenture financing
with AV Securities Inc., with up to $10
million available for the Company to close on until
January 16, 2016 and up to
$10 million available for the Company
to close on approximately four months later;
- Recognized funds flow from operations in the quarter of
$3.5 million ($0.03 per share) in a difficult oil price
environment;
- Realized a Brent referenced sales price of $51.16/bbl, an operating netback of $14.54/bbl and a cash netback of $7.54/bbl for the quarter;
- Managed capital expenditures to a minimum, spending
$2.2 million throughout the
quarter;
- Reduced average unit transportation costs to 9.34/bbl compared
to 12.25/bbl for the previous quarter;
Financial and Operating Results
The following table presents the highlights of Petroamerica's
financial and operating results.
(in $000 US except
share, per share or unless otherwise noted)
|
|
Q3 2015
|
|
Q2 2015
|
|
9 mos 2015
|
|
Q3 2014
|
|
|
|
|
|
|
|
|
|
Oil revenue – net of
royalties
|
$
|
12,887
|
$
|
15,873
|
$
|
45,815
|
$
|
43,150
|
Funds flow from
operations
|
$
|
3,505
|
$
|
3,022
|
$
|
8,819
|
$
|
1,048
|
Funds flow per share-
basic
|
$
|
0.03
|
$
|
0.03
|
$
|
0.10
|
$
|
0.01
|
Funds flow per share-
diluted
|
$
|
0.03
|
$
|
0.03
|
$
|
0.10
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
(Loss) income for
period
|
$
|
(73,299)
|
$
|
(2,024)
|
$
|
(82,275)
|
$
|
(7,947)
|
Total comprehensive
(loss) income
|
$
|
(70,900)
|
$
|
(2,628)
|
$
|
(82,872)
|
$
|
(14,182)
|
(Loss) income per
share - basic
|
$
|
(0.72)
|
$
|
(0.02)
|
$
|
(0.89)
|
$
|
(0.10)
|
(Loss) income per
share - diluted
|
$
|
(0.72)
|
$
|
(0.02)
|
$
|
(0.89)
|
$
|
(0.10)
|
Total
assets
|
$
|
144,427
|
$
|
230,849
|
$
|
144,427
|
$
|
361,906
|
Total
cash
|
$
|
23,102
|
$
|
23,504
|
$
|
23,102
|
$
|
63,221
|
Notes
payable
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
30,718
|
Shareholders'
equity
|
$
|
111,551
|
$
|
169,525
|
$
|
111,551
|
$
|
229,246
|
|
|
|
|
|
|
|
|
|
Exploration
costs
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
715
|
Capital expenditures
- excluding acquisition
|
$
|
2,229
|
$
|
950
|
$
|
5,717
|
$
|
9,564
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding (000's)
|
|
108,888
|
|
87,252
|
|
108,888
|
|
87,175
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
(000's)
|
|
102,303
|
|
87,252
|
|
92,324
|
|
82,588
|
Diluted
(000's)
|
|
102,303
|
|
87,252
|
|
92,324
|
|
82,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average production -
boepd
|
|
3,655
|
|
3,634
|
|
3,943
|
|
6,009
|
Selling price
$/boe
|
$
|
44.10
|
$
|
54.47
|
$
|
48.47
|
$
|
94.59
|
Royalty
$/boe
|
$
|
(5.17)
|
$
|
(6.80)
|
$
|
(5.70)
|
$
|
(18.57)
|
Average
transportation costs $/boe
|
$
|
(9.34)
|
$
|
(12.25)
|
$
|
(12.04)
|
$
|
(14.87)
|
Average production
cost $/boe
|
$
|
(15.05)
|
$
|
(14.54)
|
$
|
(13.29)
|
$
|
(15.46)
|
Operating netback
$/boe
|
$
|
14.54
|
$
|
20.88
|
$
|
17.44
|
$
|
45.69
|
Cash netback
$/boe
|
$
|
7.54
|
$
|
8.92
|
$
|
8.67
|
$
|
33.46
|
|
|
|
|
|
|
|
|
|
Reference price -
Brent ($/bbl)
|
$
|
51.16
|
$
|
63.50
|
$
|
56.58
|
$
|
103.46
|
|
|
|
|
|
|
|
|
|
Share
trading
|
|
|
|
|
|
|
|
|
High
|
$
|
1.45
|
$
|
1.45
|
$
|
1.60
|
$
|
4.40
|
Low
|
$
|
1.00
|
$
|
1.00
|
$
|
1.00
|
$
|
2.80
|
Close
|
$
|
1.05
|
$
|
1.05
|
$
|
1.05
|
$
|
3.00
|
Trading volume
(000's)
|
|
7,085
|
|
7,085
|
|
16,440
|
|
17,176
|
Third Quarter Financial Summary
For the three months ended September 30,
2015, the Company reported $14.6
million in revenue (before royalties) from the sale of 331
thousand boe or 3,655 boepd. The realized sales price was
$44.10/boe generating an operating
netback of $14.54/boe and a cash
netback of $7.54/boe.
For the third quarter of 2015, the Company's net loss was
$73.3 million ($0.72 per share diluted). due primarily to
the recognition of $90 million in
non-cash depletion & depreciation and impairment expense in the
current quarter. The impairment charge is a result of a
reevaluation of the carrying value of the Company's assets due to
lower projected oil prices. The Company's capital expenditures for
the third quarter were $2.2 million,
all invested in Colombia. As at
September 30, 2015, the Company held
50 thousand barrels of oil ('Mbbls') in inventory.
The Company continues to focus on reducing field operating
expenditures. On a per barrel basis, production costs were
$15.05 for the third quarter of 2015,
a reduction from $15.46/boe for the
third quarter of 2014. Transportation costs have been reduced from
$14.87/boe in the third quarter of
2014 to $9.34/boe in the current
quarter.
Private Placement
On October 27, 2015, the Company
announced that that it had entered into an agreement with AV
Securities to issue up to $20 million
in debt financing, with up to $10
million expected to close in the fourth quarter of 2015
and up to $10 million to close
approximately four months later.
Petroamerica is pleased to provide an update that AV Securities
Inc. has agreed to extend the initial drawdown deadline for up to
$10 million until January 16, 2016 and up to an additional
$10 million to be available
approximately four months later.
This placement will be cancelled in the event that the
Arrangement with Gran Tierra outlined below is completed.
2015 Guidance
The Company is targeting gross company share production (net
before royalty) for full-year 2015 of 3,600 boepd.
Petroamerica's expected capital spending projection for the
same period is now expected to be approximately $6.8 million.
Operations Update
Company working interest ('WI') production (before
royalties) for the third quarter of 2015 averaged 3,655 boepd, with
2,388 boepd coming from the Llanos Basin and 1,267 boepd from the
Putumayo Basin. Company WI production for the first nine
months of 2015 averaged 3,943 boepd. In the fourth quarter,
WI production has averaged approximately 2,912 boepd up to and
including November 25. Production in the Las Maracas field
was lower than expected during this period due to pump failures on
two key wells, Las Maracas-9 and Las Maracas-15, which required
pump repairs and additional remedial work to minimize the
occurrence of future failures. Both wells have been returned
to production and the field has been restored to full
productivity. Production operations were normal in the
Suroriente field during this period, with the exception of a six
day production interruption in mid-October, when production was at
25% of productive capacity due to local road blockades which were
subsequently removed. Assuming normal operations for the
remainder of 2015, the Company expects to meet the previously
announced full-year working interest production target of 3,600
boepd.
Arrangement with Gran Tierra
On November 12, 2015, the Company
announced that it had entered into an arrangement agreement (the
"Arrangement") whereby Gran Tierra has agreed to acquire all
of the issued and outstanding common shares of Petroamerica by way
of a statutory plan of arrangement under the Business
Corporations Act (Alberta)
(the "Acquisition"). Under the terms of the
Arrangement Agreement, Petroamerica shareholders will receive, at
their election, either 0.40 of a Gran Tierra common share or
C$1.33 in cash for each Petroamerica
share, subject to a maximum of 70 percent of the consideration
payable in cash. The acquisition is expected to close on or
around the end of January, 2016.
This acquisition of Petroamerica is highly strategic and will
strengthen Gran Tierra's position as the premier operator and land
holder in the Putumayo Basin. Gran Tierra has the financial
capacity to pursue additional exploration and development projects
within Petroamerica's asset portfolio maximizing its value.
Petroamerica established a special committee comprised of
independent Directors, to explore various transaction alternatives
available to Petroamerica, including transactions similar in nature
to the Acquisition. The offer from Gran Tierra was unanimously
recommended to the board of directors by the special committee, and
the board of directors of Petroamerica, with the exception of one
director who recused himself for potential conflict reasons but who
unequivocally supports the transaction, has unanimously recommended
approval of the Acquisition determining that the Acquisition is in
the best interests of Petroamerica shareholders.
PETROAMERICA OIL
CORP.
|
Condensed
Consolidated Interim Statements of Financial
Position
|
|
|
As at
|
|
As at
|
|
|
September
30,
|
|
December
31,
|
(thousands of United
States dollars)
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
23,102
|
$
|
73,296
|
|
Trade and other
receivables
|
|
12,250
|
|
13,825
|
|
Prepayments and
deposits
|
|
998
|
|
463
|
|
Crude oil
inventory
|
|
1,712
|
|
2,096
|
|
|
38,062
|
|
89,680
|
Non-current
assets
|
|
|
|
|
|
Restricted
cash
|
|
14,626
|
|
11,065
|
|
Property, plant and
equipment
|
|
24,552
|
|
134,711
|
|
Exploration and
evaluation assets
|
|
67,187
|
|
54,974
|
|
|
106,365
|
|
200,750
|
Total
assets
|
$
|
144,427
|
$
|
290,430
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current income
tax
|
$
|
394
|
$
|
2,459
|
|
Accounts payable and
accrued liabilities
|
|
15,852
|
|
38,803
|
|
Notes
payable
|
|
-
|
|
29,933
|
|
|
16,246
|
|
71,195
|
Non-current
liabilities
|
|
|
|
|
|
Decommissioning
liabilities
|
|
10,753
|
|
9,939
|
|
Deferred tax
liability
|
|
5,226
|
|
26,750
|
|
Stock appreciation
rights liability
|
|
651
|
|
1,554
|
Total
liabilities
|
|
32,876
|
|
109,438
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
239,077
|
|
226,492
|
|
Contributed
surplus
|
|
25,484
|
|
24,638
|
|
Translation
reserve
|
|
(6,963)
|
|
(6,366)
|
|
Deficit
|
|
(146,047)
|
|
(63,772)
|
|
|
111,551
|
|
180,992
|
Total liabilities
and shareholders' equity
|
$
|
144,427
|
$
|
290,430
|
PETROAMERICA OIL
CORP.
|
Condensed
Consolidated Interim Statements of (Loss) Income and
Comprehensive (Loss) Income
|
|
|
Three months ended
September 30
|
|
Nine months ended
September 30
|
(thousands of United
States dollars, except per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
|
|
|
|
|
|
|
|
|
Oil revenue - net of
royalties
|
$
|
12,887
|
$
|
43,150
|
$
|
45,815
|
$
|
142,677
|
|
|
12,887
|
|
43,150
|
|
45,815
|
|
142,677
|
Expenses
|
|
|
|
|
|
|
|
|
|
Production
|
|
(4,983)
|
|
(8,777)
|
|
(14,233)
|
|
(13,769)
|
|
Transportation
|
|
(3,093)
|
|
(8,441)
|
|
(12,899)
|
|
(29,954)
|
|
Purchased
oil
|
|
-
|
|
-
|
|
-
|
|
(1,625)
|
|
Exploration and
evaluation
|
|
-
|
|
(715)
|
|
-
|
|
(1,069)
|
|
Depletion and
depreciation
|
|
(6,434)
|
|
(10,938)
|
|
(22,518)
|
|
(29,888)
|
|
Colombian equity
tax
|
|
-
|
|
-
|
|
(501)
|
|
-
|
|
Impairment
|
|
(90,394)
|
|
-
|
|
(90,394)
|
|
-
|
|
General and
administration
|
|
(2,164)
|
|
(5,272)
|
|
(7,592)
|
|
(11,745)
|
|
Transaction
costs
|
|
(966)
|
|
(7,818)
|
|
(976)
|
|
(9,047)
|
|
Share-based
payments
|
|
135
|
|
(360)
|
|
23
|
|
(2,352)
|
|
|
|
|
|
|
|
|
|
|
|
(107,899)
|
|
(42,321)
|
|
(149,090)
|
|
(99,449)
|
|
Finance and
other
|
|
497
|
|
(1,744)
|
|
(1,443)
|
|
(4,245)
|
|
Foreign exchange gain
(loss)
|
|
(1,802)
|
|
1,185
|
|
1,025
|
|
3,028
|
|
|
(1,305)
|
|
(559)
|
|
(418)
|
|
(1,217)
|
Income (loss)
before income taxes
|
|
(96,317)
|
|
270
|
|
(103,693)
|
|
42,011
|
Current income tax
expense
|
|
389
|
|
(2,971)
|
|
(390)
|
|
(18,781)
|
Deferred tax recovery
(expense)
|
|
22,629
|
|
(5,246)
|
|
21,808
|
|
(7,134)
|
Net income (loss)
for the period
|
|
(73,299)
|
|
(7,947)
|
|
(82,275)
|
|
16,096
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to income or (loss):
|
|
|
|
Reserve on
translation of foreign operations
|
|
2,399
|
|
(6,235)
|
|
(597)
|
|
(8,286)
|
Total
comprehensive income (loss)
|
$
|
(70,900)
|
$
|
(14,182)
|
$
|
(82,872)
|
$
|
7,810
|
Basic income
(loss) per share
|
$
|
(0.72)
|
$
|
(0.10)
|
$
|
(0.89)
|
$
|
0.24
|
Diluted income
(loss) per share
|
$
|
(0.72)
|
$
|
(0.10)
|
$
|
(0.89)
|
$
|
0.23
|
Weighted average
number of basic
|
|
|
|
|
|
|
|
|
common shares outstanding
|
|
102,303,306
|
|
82,587,679
|
|
92,324,291
|
|
67,176,269
|
Weighted average
number of diluted
|
|
|
|
|
|
|
|
|
common shares outstanding
|
|
102,303,306
|
|
82,587,679
|
|
92,324,291
|
|
69,053,745
|
PETROAMERICA OIL
CORP.
|
|
|
Condensed
Consolidated Interim Statements of Changes in Equity
|
|
|
(thousands of United
States dollars)
|
|
Share
Capital
|
|
Contributed
surplus
|
|
Translation
reserve
|
|
Deficit
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January
1, 2015
|
$
|
226,492
|
$
|
24,638
|
$
|
(6,366)
|
$
|
(63,772)
|
$
|
180,992
|
Net loss for the
period
|
|
-
|
|
-
|
|
-
|
|
(82,275)
|
|
(82,275)
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
(597)
|
|
-
|
|
(597)
|
Total
comprehensive loss
|
|
-
|
|
-
|
|
(597)
|
|
(82,275)
|
|
(82,872)
|
Issue of share
capital
|
|
12,585
|
|
-
|
|
-
|
|
-
|
|
12,585
|
Share-based
payments
|
|
-
|
|
846
|
|
-
|
|
-
|
|
846
|
Balance at
September 30, 2015
|
$
|
239,077
|
$
|
25,484
|
$
|
(6,963)
|
$
|
(146,047)
|
$
|
111,551
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of United
States dollars)
|
|
Share
Capital
|
|
Contributed
surplus
|
|
Translation
reserve
|
|
Deficit
|
|
Total
equity
|
Balance at January
1, 2014
|
$
|
138,936
|
$
|
24,079
|
$
|
(1,172)
|
$
|
(25,745)
|
$
|
136,098
|
Net income for the
period
|
|
-
|
|
-
|
|
-
|
|
16,096
|
|
16,096
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
(8,286)
|
|
-
|
|
(8,286)
|
Total
comprehensive income (loss)
|
|
-
|
|
-
|
|
(8,286)
|
|
16,096
|
|
7,810
|
Issue of share
Capital
|
|
79,300
|
|
-
|
|
-
|
|
-
|
|
79,300
|
Warrants
exercised
|
|
5,676
|
|
(472)
|
|
-
|
|
-
|
|
5,204
|
Stock options
exercised
|
|
172
|
|
(65)
|
|
-
|
|
-
|
|
107
|
Share-based
payments
|
|
-
|
|
916
|
|
-
|
|
-
|
|
916
|
Cancellation of
shares
|
|
(189)
|
|
-
|
|
-
|
|
-
|
|
(189)
|
Balance at
September 30, 2014
|
$
|
223,895
|
$
|
24,458
|
$
|
(9,458)
|
$
|
(9,649)
|
$
|
229,246
|
PETROAMERICA OIL
CORP.
|
Condensed
Consolidated Interim Statements of Cash Flows
|
|
|
Three months ended
September 30
|
|
Nine months ended
September 30
|
(thousands of United
States dollars)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net (loss) income for
the period
|
$
|
(73,299)
|
$
|
(7,947)
|
$
|
(82,275)
|
$
|
16,096
|
Items not involving
cash:
|
|
|
|
|
|
|
|
|
|
Share-based
payments
|
|
(135)
|
|
360
|
|
(23)
|
|
2,352
|
|
Depletion and
depreciation
|
|
6,434
|
|
10,938
|
|
22,518
|
|
29,888
|
|
Unrealized foreign
exchange (gain) loss
|
|
2,715
|
|
(7,355)
|
|
(345)
|
|
(9,956)
|
|
Deferred tax expense
(recovery)
|
|
(22,629)
|
|
5,246
|
|
(21,808)
|
|
7,134
|
|
Impairment of
property, plant and equipment
|
|
90,394
|
|
-
|
|
90,394
|
|
-
|
|
Accretion and
amortization
|
|
25
|
|
324
|
|
358
|
|
901
|
|
Abandonment
expenditures
|
|
-
|
|
(518)
|
|
-
|
|
-
|
|
|
3,505
|
|
1,048
|
|
8,819
|
|
45,897
|
|
Net changes in
non-cash working capital
|
|
(2,772)
|
|
4,734
|
|
(23,694)
|
|
8,963
|
Cash provided
by (used in) operating activities
|
|
733
|
|
5,782
|
|
(14,875)
|
|
54,860
|
Investing
activities
|
|
|
|
|
|
|
|
|
Short term investing
activities
|
|
-
|
|
22,884
|
|
-
|
|
(7,106)
|
Exploration and
evaluation expenditures
|
|
(1,852)
|
|
(899)
|
|
(3,372)
|
|
(2,974)
|
Property, plant and
equipment expenditures
|
|
(300)
|
|
(6,810)
|
|
(1,840)
|
|
(21,141)
|
Restricted cash
investments
|
|
443
|
|
-
|
|
(2,008)
|
|
-
|
Corporate
acquisition, net of cash acquired
|
|
574
|
|
(10,777)
|
|
574
|
|
(10,777)
|
Cash (used in)
provided by investing activities
|
|
(1,135)
|
|
4,398
|
|
(6,646)
|
|
(41,998)
|
Financing
activities
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
-
|
|
(28,500)
|
|
(28,674)
|
|
(28,500)
|
Stock options
exercised
|
|
-
|
|
72
|
|
-
|
|
107
|
Warrants
exercised
|
|
-
|
|
3,217
|
|
-
|
|
-
|
Cancellation of
shares
|
|
-
|
|
(189)
|
|
-
|
|
(189)
|
Cash used in
financing activities
|
|
-
|
|
(25,400)
|
|
(28,674)
|
|
(23,378)
|
Decrease in cash
and cash equivalents during the period
|
|
(402)
|
|
(15,220)
|
|
(50,194)
|
|
(10,516)
|
Cash and cash
equivalents, beginning of period
|
|
23,504
|
|
68,441
|
|
73,296
|
|
63,737
|
Cash and cash
equivalents, end of period
|
$
|
23,102
|
$
|
53,221
|
$
|
23,102
|
$
|
53,221
|
|
|
|
|
|
|
|
|
|
Forward Looking Statements:
This news release includes information that constitutes
"forward-looking information" or "forward-looking statements".
Statements relating to "reserves" or "resources" are deemed to be
forward looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the resources and
reserves described can be profitably produced in the future. More
particularly, this news release contains statements concerning
expectations regarding regulatory and partner approvals on the
Company's development plan, drilling and operational opportunities
and the timing associated therewith, , test results and the timing
thereof, , potential future acquisitions and other statements,
expectations, beliefs, goals, objectives, assumptions and
information about possible future conditions, results of operations
or performance, the use of available cash on hand in addition to
the potential exploration and development opportunities and
expectations regarding regulatory approval and the overall
strategic direction of the Company. The forward-looking
statements contained in this document, including expectations and
assumptions concerning the obtaining of the necessary regulatory
approvals, including ANH approval, and the assumptions, opinions
and views of the Company or cited from third party sources, are
solely opinions and forecasts which are uncertain and subject to
risks.
A multitude of factors can cause actual events to differ
significantly from any anticipated developments and although the
Company believes that the expectations represented by such
forward-looking statements are reasonable, undue reliance should
not be placed on the forward-looking statements because there can
be no assurance that such expectations will be realized. Material
risk factors include, but are not limited to: the inability to
obtain regulatory approval, including ANH approval, for the
transfer of participating interests and/or operatorship for the
Company's properties, the risks of the oil and gas industry
in general, such as operational risks in exploring for, developing
and producing crude oil and natural gas, market demand and
unpredictable shortages of equipment and/or labour, changes or
fluctuations in production levels, the size of oil and natural gas
reserves or resources; incorrect assessments of the value of
acquisitions and exploration and development programs; geological,
technical, drilling, production and processing problems; potential
delays or changes in plans with respect to exploration or
development projects or capital expenditures; fluctuations in oil
and gas prices, foreign currency exchange rates and interest rates,
and reliance on industry partners.
Readers should also note that even if the drilling program as
proposed by the Company is successful, there are many factors that
could result in production levels being less than anticipated or
targeted, including without limitation, greater than anticipated
declines in existing production due to poor reservoir performance,
mechanical failures or inability to access production facilities,
among other factors.
Neither the Company nor any of its subsidiaries nor any of
its officers, directors or employees guarantees that the
assumptions underlying such forward-looking statements are free
from errors nor does any of the foregoing accept any responsibility
for the future accuracy of the opinions expressed in this document
or the actual occurrence of the forecasted developments.
The forward-looking statements contained in this document are
made as of the date hereof and the Company undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities
laws.
Use of "boe"
'boe' may be misleading if used in isolation.
Throughout this press release the calculation of barrels of oil
equivalent ("boe") is at a conversion rate of 6,000 cubic feet
("cf") of natural gas for one barrel of oil and is based on an
energy conversion method at the burner tip and does not represent a
value equivalence at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Petroamerica Oil Corp.