PetroLatina Energy Plc (“PetroLatina”, “PELE” or the “Company”) is an independent petroleum exploration, development and production company formed in July 2004 focused on Latin America, an area in which the management team has decades of operating experience and in which they have pursued a long-term strategy of discovering and developing reserves.
In 2004, the Company raised $21.3 million (net of costs) through private placements principally with institutional investors to fund the acquisition of PetroLatina Corporation (formerly Mexpetrol Guatemala Corporation) which owned a licence in Guatemala and subsequent operations related thereto.
During late 2005, the Company acquired a second licence in Guatemala (A7-2005). In 2006, PetroLatina expanded its operations into Colombia, acquiring Petroleos del Norte S.A. and was awarded two exploration licences in the Middle Magdalena Valley.
As at 31 December 2009, the Company held interests in 5 contracts and wholly owned the RZA pipeline in Colombia, and held a 20% carried interest in 3 wells and a 20% working interest in 2 licence areas in Guatemala.
PELE’s balanced portfolio comprises production, development drilling, workover opportunities and high-potential exploration projects.
The Company intends to continue increasing the asset value of its portfolio by utilising the cash flow from current production to advance certain projects whilst looking for partners for other projects, which should allow their value to be realised more quickly.
Ryder Scott Company, L.P. (“Ryder Scott”), the independent petroleum consultancy firm, has recently completed an updated assessment of the reserves, future production and income attributable to PELE’s concessions in Colombia. It reported that as at 30 November 2009, estimated proved plus probable reserves (“2P reserves”) net to the Company totalled 6.09 (2007: 5.06) million barrels of oil equivalent (“boe”) and proved plus probable plus possible reserves (“3P reserves”) net to the Company totalled 11.40 (2007: 7.34) million boe. Since then, and post the year-end, PELE has drilled a further four wells, two of which may significantly add to its 2P reserves. The Company currently expects to commission an updated reserves report during the first half of 2010 once the current round of drilling has been completed.
The Company’s ordinary shares have been traded on AIM, a market operated by the London Stock Exchange plc, since 2005 (LSE-AIM: “PELE”).
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