Welcome!

News Feed Item

Platino Energy Corp. Announces an Operational, Financial and Strategic Update, First Quarter Financial Results, Results of the Annual General Meeting, and an Updated Corporate Presentation

CALGARY, ALBERTA -- (Marketwired) -- 05/14/14 -- Platino Energy Corp. ("Platino" or the "Company") (TSX VENTURE:PZE) announces a number of items, including a corporate operations, financial and strategic update, first quarter financial results, annual general meeting results, and an updated corporate presentation.

OPERATIONAL AND FINANCIAL UPDATE

Coati Block

The Company recently received approval for a long-term test of the Coati-1 well and is currently preparing a test program to be initiated in the second quarter of 2014. The planned test will involve a re-entry of the Coati-1 well utilizing rented facilities and a jet-pump with a slick-line unit, targeting production of the U Sandstone. The Coati-1 well originally encountered 10 feet gross/8 feet net of pay (13% porosity) in the U Sandstone and tested 141 barrels of oil per day of 27 degrees API oil over a 19 hour period. The reservoir is not pressure depleted and produced minimal water. The planned U Sandstone re-entry will assist management in determining whether commercial quantities of oil can be produced from the reservoir and will satisfy Agencia Nacional de Hidrocarburos ("ANH") requirements to retain the Coati-1 evaluation area, which must be completed by the end of June 2014. The capital investment for the U Sandstone re-entry is expected to be minimal.

The Company has applied for a global block environmental license on the Coati block. All new exploration activities will be suspended until the application process is completed, which is expected to be in the third quarter of 2015.

Putumayo-8 Block

Expected exploration activity in 2014 on the Putumayo-8 block has been delayed due to issues related to community negotiations and the environmental licensing process. As a result of these delays, Platino and its partner do not expect to begin civil works on the first Putumayo-8 exploration well until late in 2015. In addition, the partners are evaluating the potential to convert the remaining 112 km2 seismic commitment to the ANH in respect of the block to an additional exploration well to be drilled in 2016.

Block Activity Summary


                                                                            
----------------------------------------------------------------------------
Block      Working Interest Activity                     Expected Timing    
----------------------------------------------------------------------------
Coati      100%(1)          Coati-1 re-entry to produce  Q2 2014            
                            U-sand                                          
                            ------------------------------------------------
                            Environmental license        Q2 2014 to Q3 2015 
                            process                                         
                            ------------------------------------------------
                            Drill Nasua exploration well Q4 2015            
----------------------------------------------------------------------------
Putumayo-8 50%              Environmental license        Q2 2014 to Q3 2015 
                            process                                         
                            ------------------------------------------------
                            Drill first exploration well Q4 2015            
----------------------------------------------------------------------------
Andaquies  100%             Evaluating further           As early as Q3 2014
                            exploration plans                               
----------------------------------------------------------------------------
(1) Working interest will be reduced to 80% upon Canacol Energy Ltd.        
("Canacol") earning-in in accordance with farm-in agreement                 

General & Administrative Expenses

Platino has significantly reduced general and administrative ("G&A") expenses to match the current level of operations to ensure that the Company preserves cash balances for use in potential asset purchases, farm-ins or other transactions. Management estimates full year 2014 G&A to be between US$3 million and US$4 million, with a go-forward annualized run-rate of approximately US$2.5 million.

2014 Full Year Budget & Change in Cash


                                                                            
----------------------------------------------------------------------------
Item                                                     US$ MM             
----------------------------------------------------------------------------
Dec 31, 2013 Cash & Short Term Investments                $54.7             
----------------------------------------------------------------------------
                                               Lower Spend    Higher Spend  
----------------------------------------------------------------------------
Capital Expenditures                             ($3.5)          ($5.0)     
----------------------------------------------------------------------------
G&A Expenses                                     ($3.0)          ($4.0)     
----------------------------------------------------------------------------
Estimated Dec 31, 2014 Cash & ST Investments      $48.2           $45.7     
----------------------------------------------------------------------------

The estimated year-end 2014 cash position equates to C$0.69 to C$0.77(2) per basic share in cash.

STRATEGIC FOCUS

The Company has continued to pursue transactions with the goal of generating near-term catalysts and management is focused on three key areas:


1.  Utilizing Platino's strong financial position. 
    --  March 31, 2014 cash and short-term investments of US$53 MM (approx.
        C$0.84(2) per basic share) 
    --  No debt 
    --  Low ANH commitments 
    --  Reduced annualized G&A run rate of approx. $2.5 MM 
2.  Maintaining the ability to act quickly on strategic opportunities. 
3.  Developing a prospective long-term portfolio. 
    --  Three Putumayo blocks with high working interests 
    --  Past production of oil at Coati with well re-entry expected in the
        second quarter of 2014 
    --  Minimal required capital spend in 2014 

                                                                            
(2) CAD/USD exchange rate of 1.1055 as at March 31, 2014                    

SUMMARY OF FIRST QUARTER FINANCIAL RESULTS

The Company's unaudited consolidated financial results for the quarter ended March 31, 2014, together with management's discussion and analysis in respect thereof are available on the Company's website at www.platinoenergy.com and under the Company's SEDAR profile at www.sedar.com.


                                                                            
----------------------------------------------------------------------------
SELECTED FINANCIAL INFORMATION                                              
----------------------------------------------------------------------------
(US$000s, except shares and data per  Three Months Ended Three Months Ended 
 share)                                   March 31, 2014     March 31, 2013 
----------------------------------------------------------------------------
Net Loss                                          (1,523)            (1,235)
----------------------------------------------------------------------------
Basic and diluted net loss per share              ($0.02)            ($0.02)
----------------------------------------------------------------------------
Weighted average shares outstanding -                                       
 Basic and Diluted                            69,492,164         67,942,164 
----------------------------------------------------------------------------
Expenditures on E&E Assets                           449              1,991 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
As at (US$000s):                          March 31, 2014  December 31, 2013 
----------------------------------------------------------------------------
Cash and equivalents, and short term                                        
 investments                                      52,975             54,659 
----------------------------------------------------------------------------
Working capital surplus                           51,592             53,564 
----------------------------------------------------------------------------
Long-term debt                                         -                  - 
----------------------------------------------------------------------------
Total assets                                     111,178            112,302 
----------------------------------------------------------------------------
Common shares                                 69,492,164         69,492,164 
----------------------------------------------------------------------------

ANNUAL GENERAL MEETING VOTING RESULTS

At the annual general meeting of shareholders of the Company, which took place in Calgary, Alberta on May 14, 2014, all of the nominees proposed as directors and listed in the Company's information circular dated April 11, 2014, were elected as directors of the Company.

All other resolutions brought before the Meeting were approved by shareholders, including the appointment of Deloitte LLP as auditors and re-approval of the Company's stock option plan.

CORPORATE PRESENTATION

Platino has posted an updated corporate presentation regarding its assets and operations on its website at www.platinoenergy.com.

About Platino Energy Corp.

Platino is a Calgary, Alberta headquartered resource company engaged in the exploration for, and the acquisition, development and production of hydrocarbons in Colombia.

Advisory Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "plans", "expects", "estimates", and similar expressions is intended to identify forward-looking information concerning the Company's future operations and performance including, but not limited to: the re-entry of the Coati-1 well; determination of the production potential of Platino's assets; the suspension of exploration activities on the Coati Block pending the Company's environmental license application in respect thereof; future exploration activity and drilling program, including the Block Activity Summary; regulatory applications; future G&A expenses; estimated year-end 2014 cash position.

The forward-looking information in this news release is based on certain key expectations and assumptions made by Platino. Although Platino believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Platino can give no assurance that it will prove to be correct.

The forward-looking information in this news release is subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied in the forward-looking information. Such risks, uncertainties and factors include, among others: risks that Platino will face unbudgeted expenses or payment obligations that would affect its year-end cash position; the nature of the exploration and development activities on Platino's assets; risks that actual operating and capital costs will be greater than expected; risks as to the ability of the Company's industry partners to satisfy their obligations under their agreements with the Company, as well as other difficulties encountered during the exploration for, delineation, development and production of oil. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

Additional information on these and other factors that could affect the operations or financial results of Platino are included in the Listing Application (Form 2B) of Platino filed with the TSXV, which has been filed with applicable securities regulatory authorities and may be accessed through the SEDAR website www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Platino undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

Contacts:
Platino Energy Corp.
In Bogota:
Tomas Villamil
President & Chief Executive Officer
+57 (1) 235-0007

Andres Cuenca
Controller & Interim Chief Financial Officer
+57 (1) 235-0007

In Calgary:
Tyler Rimbey
Vice President, Business Development
+1 (403) 262-6046
www.platinoenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
FinTech is the sum of financial and technology, and it’s one of the fastest growing tech industries. Total global investments in FinTech almost reached $50 billion last year, but there is still a great deal of confusion over what it is and what it means – especially as it applies to retirement. Building financial startups is not simple, but with the right team, technology and an innovative approach it can be an extremely interesting domain to disrupt. FinTech heralds a financial revolution that...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...