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07.04.10

Final Results for the year ended 31 December 2009


PetroLatina Energy Plc
(“PetroLatina”, “PELE” or the “Company”)

Final Results for the year ended 31 December 2009

Extensive drill programme delivers significant growth

PetroLatina (AIM: PELE), an independent oil and gas exploration, development and production company focused on Latin America, announces its audited final results for the year ended 31 December 2009.

Operational Highlights:

• Eight new successful wells drilled during 2009
• Six of the eight wells drilled were commitment wells required to be drilled as part of the extension of the Tisquarama licence to its economic life. In these six wells, PELE carried Ecopetrol’s share of costs. The final two commitment wells are due to be completed in 2010. The impact of satisfying the commitment will reduce PELE’s share of cost per well by 50% whilst maintaining PELE’s agreed share of revenue
• Gross production for the year increased by 58% to 489,159 (2008: 310,032) barrels (“bbls”), at an average daily production rate of 1,340 (2008: 849) barrels of oil per day (“bopd”)
• Net production for the year increased by 162% to 233,285 (2008: 89,230) bbls, at an average daily net production rate of 639 (2008: 244) bopd
• Increased volumes transported through the Company’s Rio Zulia - Ayacucho pipeline: 1,279,041 bbls (2008: 983,882 bbls) or 3,504 bopd (2008: 2,696 bopd)
• Ryder Scott Company, L.P. (“Ryder Scott”), the independent petroleum consultants, provided an NPV10 value for the Company’s Colombian 3P reserves of $247 million as at 30 November 2009
• Reduced General & Administration costs and expenses

Financial Highlights:

• Revenues increased by approximately 78% to $13.8 million (2008: $7.8 million)
• Gross profits increased significantly to $4.38 million* (2008: $3.40 million)
• EBITDA generation of $5.25 million* represented a significant turnaround (2008: loss of $1.20 million)
• Operating loss before finance costs and tax reduced by approximately 85% to $0.47 million* (2008: $3.23 million)
• Loss after tax increased to $12.5 million (2008: $3.9 million) primarily as a result of a non-cash charge of $3.74 million relating to the accounting treatment and fair value of convertible loan notes issued by the Company and the impact of the one off impairment charge for the Zoe-1 exploration well
• Loss per share of $0.28 (2008: $0.12)
• $11.165 million convertible loan investment secured during the year from Tribeca Oil and Gas Financing, Inc. (“TOGF”), a subsidiary of the Company’s largest shareholder, Tribeca Oil & Gas Inc. (“TOGI”), a portfolio investment company of Tribecapital Partners S.A. (“Tribeca”), a Colombian private equity firm
• Cash and cash equivalents (including term deposits) of $4.91 million (2008: $2.71 million)

* Excluding the impact of a one-off impairment charge in respect of the Zoe-1 exploration well of $6.59 million

Post Balance Sheet Events:

• Since the period end, the Group has increased total gross production to date by approximately 17% to 149,810 bbls at an average daily production rate of 1,664 bopd, with net oil production of 67,605 bbls, at an average daily net production rate of 751 bopd
• Appointed Evolution Securities Limited as a new joint broker
• Entered into a four year Senior First Lien Secured Credit Facility of up to, in aggregate, $75 million with Macquarie Bank Limited (“Macquarie”) to finance part of the Company’s planned ongoing drilling programme
• Commissioned works to connect the Serafin-1 gas well to the main Colombian gas trunk line, with production expected to commence during the last quarter of 2010
• Announced a stable flow of approximately 42 bopd of 23 degree API oil from the Umir formation at the Zoe-1 well. Based on the test results and using petrophysical parameters, seismic data and mapping of the subthrust structure, an oil bearing zone is present with OOIP of approximately 1.3 MMBO (management estimate)
• Latco-1 rig mobilised to the Santa Lucia field where it is currently drilling the Santa Lucia-4 development well

Outlook:

• Ongoing 2010 drill programme expected to significantly increase production, cash flow and reserves
• Initial commercial gas sales from Serafin gas field expected to commence in Q4 2010
• Anticipated continued increase in the RZA pipeline throughput
• Plans to drill up to a further eight wells in the remainder of 2010 to increase production and reserves with the expectation of substantially increasing Possible Reserves as well as moving an element of these into the Probable Reserves and Proved Reserves categories
• Two of the eight planned wells are commitment wells, which once drilled will complete PELE’s commitment to Ecopetrol and result in the Company’s share of cost per well reducing by 50% whilst maintaining PELE’s agreed share of revenue

Luc Gerard, Executive Chairman of PetroLatina, commented:

“PetroLatina’s 2009 drill programme was overall a considerable success, delivering a significant uplift in production and cash flow, and we are on track to deliver further increases this year. The cost saving initiatives implemented over the past two years have had a material impact on profitability and we are committed to delivering further progress to shareholders in 2010 and beyond.”


Enquiries:

PetroLatina Energy Plc
Juan Carlos Rodriguez, Chief Executive Officer
Tel: +57 1627 8435
Pawan Sharma, Executive Vice President - Corporate Affairs Tel: +44 (0)20 7766 0081

Strand Hanson Limited
Simon Raggett / Matthew Chandler Tel: +44 (0)20 7409 3494

Evolution Securities Limited
Rob Collins / Chris Sim Tel: +44 (0)20 7071 4304

Financial Dynamics
Ben Brewerton / Susan Quigley Tel: +44 (0)20 7831 3113

Additional Information on PetroLatina Energy Plc:
PetroLatina Energy Plc (AIM: PELE) is presently focused on Colombia where it currently holds 45% and 20% interests respectively in the Los Angeles and Santa Lucía fields on the Tisquirama licence, and a 100% interest in the Doña María field. In November 2007 the Company secured the extension of the Tisquirama licence for the economic life of the fields. In April 2006 the Group acquired an interest in two exploration blocks: an 85% interest in Midas and an 80% interest in La Paloma. PetroLatina also owns the Río Zulia-Ayacucho pipeline in the prolific Catatumbo basin which transports crude oil. Present exploration/exploitation activities in this area should increase the volume of crude oil transported resulting in an increased cash flow. Having sold its assets in Guatemala PetroLatina retains a 20% interest in the first three wells and a 20% working interest in future wells. Further information is available on the Company’s website (www.petrolatinaenergy.com).

Availability of Annual Report and Financial Statements

Copies of the Company’s full Annual Report and Financial Statements will be posted to shareholders shortly and, once posted, will also be made available to download from the Company’s website at www.petrolatinaenergy.com.

The Annual Report and Financial Statements will also be made available for inspection at the Company’s registered office during normal business hours on any weekday. PetroLatina Energy Plc is registered in England and Wales with registered number 05173588. The registered office is at Suite 2.3, 2nd Floor, Stanmore House, 29-30 St. James’s Street, London, SW1A 1HB.

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