VANCOUVER, Nov. 28, 2017 /CNW/ - PentaNova Energy Corp. (the
"Company") (TSXV: PNO), which has partnered with YPF S.A.
("YPF") to develop one of Argentina's largest heavy oil reserves, has
filed its interim Financial Results and Management Discussion &
Analysis for the three and nine months ended September 30, 2017.
Revenues for the period were obtained from the working interest
in the Llancanelo and Mariposa Assets, which represent only 61 days
of production during the third quarter from the closing date of the
Alianza acquisition, on July 31,
2017.
As announced on November 22, the
Company has closed on the additional 10% working interest in
Llancanelo by way of a farm-in arrangement with YPF and has signed
the definitive agreement to move to a 50% beneficial working
interest in the Llancanelo field. The Company will now develop the
Llancanelo Asset in a 50 percent partnership with YPF, Argentina's largest energy producer. This will
generate incremental increases in revenues in the fourth quarter on
account of the increased working interest.
The Company incurred numerous one-time expenses associated with
the various acquisitions completed during the quarter. The Company
continues with its strategy of using positive revenue flow to
develop its assets in its pursuit to become one of Latin America's significant heavy oil
producers.
Financial Statements
Highlights include:
Llancanelo Operations
During the three and nine months ended September 30, 2017 the Llancanelo concession
produced a total of 77,204 gross barrels of oil equating to an
average of 1,266 bopd (22,419 barrels of oil at an average of 368
bopd at 29% net working interest up to September 30). The production recorded for the
period is for the August and September delivery months, subsequent
to the Alianza Acquisition with an effective date of July 31, 2017 for 29% net working interest in the
Llancanelo concession. Oil and natural gas revenue derived
from the aforementioned production for the three and nine months
ended September 30, 2017 was
$930,576 ($41.51 per boe), with attributable royalties and
operating expenses of $191,911
($8.56 per boe) and $772,566 ($34.46
per boe), respectively, for the same periods. This resulted in an
operating netback of $(1.51) per boe
on Llancanelo concession operations for the period from acquisition
up to September 30, 2017.
Mariposa Operations
The Company holds a net working interest in the Estancia La
Mariposa block of 18%, entitling it to 18% of the oil, natural gas
and condensate sales, while the operator carries 100% of the
capital expenditures and field operating costs. The net revenue
figures associated with the Mariposa Asset are presented net of any
applicable royalties and certain operating costs of transportation,
treatment and processing. Oil and natural gas production is sold on
behalf of the Company, for which the Company receives proceeds from
the operator, net of the aforementioned royalties and operating
costs. The net revenue generated from this asset has not been
included in any "per barrel" pricing herein. $322,477 Mariposa revenue before royalties is
derived from net sales of 10,531 boe during the period, equating to
a realized sales price of $30.62/boe.
Financial Results & Balances
- The Company has a positive working capital of $14.0 million as of September 30, 2017
- Net revenue realized during the third quarter from assets in
Argentina was $1.2 million
$ (U.S.
dollars)
|
Periods
ended
September 30,
2017
|
Cash and cash
equivalents
|
19,844,926
|
Working
Capital
|
13,962,004
|
Exploration and
Evaluation Assets
|
30,124,504
|
Property, Plants,
and Equipment
|
8,332,102
|
Total
Assets
|
87,167,416
|
Net Oil and
Natural Gas Production, boe (three & nine
months)
|
22,419
|
Net Oil and
Natural Gas Revenue (three & nine months)
|
930,576
|
Net Revenue on
Carried Working Interest (three & nine months)*
|
255,861
|
Royalty Expense
(three & nine months)
|
191,911
|
Operating Expenses
(three & nine months)
|
772,566
|
Net Operating
Profit (three & nine months)
|
221,960
|
Net Loss (three
months)
|
6,632,145
|
Net Loss (nine
months)
|
13,139,471
|
Net Loss per
Share, basic & diluted (three months)
|
(0.03)
|
Net Loss per
Share, basic & diluted (nine months)
|
(0.08)
|
* Represents net revenue results from the carried interest held
by the Company in the Mariposa Asset.
About PentaNova Energy Corp.
PentaNova Energy Corp.
is a publicly traded E&P company focused on proven oil &
gas plays in Latin America. The
Company holds a large diversified portfolio of producing,
development and unexploited assets in Colombia and Argentina where it will leverage its amplitude
of technical expertise and proven track record building companies
and creating value.
Complete reports and statements are available on SEDAR at
www.sedar.com and on the Company website
www.pentanovaenergy.com.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the operations described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE PentaNova Energy Corp.