PetroNova Announces Third Quarter 2012 Results

CALGARY, Nov. 23, 2012 /CNW/ - PetroNova Inc. ("PetroNova" or the "Company") (TSX-V: PNA), a company engaged in the exploration and development of oil and natural gas resources in Colombia, today announced its operational and financial results for the quarter ended September 30, 2012.

"PetroNova successfully closed a CAD$30 million private placement this quarter, which enables the progression of our active exploration program," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "We expect to drill eight additional exploration wells through mid-2013".

PetroNova's condensed consolidated interim financial statements as at and for the quarters ended September 30, 2012 and 2011, together with the notes thereto, and the related management's discussion and analysis for the periods then ended, will be available under the Company's profile on SEDAR at www.sedar.com.

Since July 1, 2012, the Company has:  

• Closed a non-brokered private placement of 46,153,845 units at a purchase price of CAD$0.65 per  unit for aggregate gross proceeds of approximately CAD$30 million, of which approximately CAD$27 million was collectively subscribed for by International Finance Corporation, a member of the World Bank Group, and the IFC African, Latin American and Caribbean Fund, LP
• Drilled the Matamata-1 exploration well in CPO-7, which has been plugged and abandonedStarted extended testing of the Atarraya-1 well. The Atarraya-1 well has been tested since October 16, 2012 with a cumulative gross production of 24,775 barrels of crude oil to date, with a BS&W of 47%, and a current gross production of 639 BOPD (PetroNova´s working interest in this well is 20%).
• Continued extended testing of the Puerto Gaitán-1 well. The Puerto Gaitán-1 well has been tested since June 15, 2012 with a cumulative gross production of 36,505 barrels of crude oil to date, with a BS&W of 58%, and a current gross production of 199 BOPD (PetroNova´s working interest in this well is 20%).
• Announced an oil discovery at the Pendare-1 well in CPO-13.
• Drilled the Matamata-1 exploration well in CPO-7 (PetroNova´s working interest in this well is 20%), which has been plugged and abandoned
• Obtained an extension for the phase 1 exploration period of the PUT-2 Block to February 2013Signed a final agreement with the Environmental Ministry, and the Villa Catalina and Alpamanga indigenous communities, a pre-requisite to obtain the environmental license in the Canelo Norte area of the PUT-2 Block
• Obtained an extension for the phase 1 exploration period of the PUT-2 Block to February 2013

Outlook:

PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur in the remainder of 2012:

• Complete drilling of the Arowana prospect on the CPO-13 Block and continue the drilling campaign.
• Receipt of the PUT-2 environmental license, with plans to initiate drilling in the PUT-2 Block in the second quarter of 2013.
• Receipt of the Tinigua environmental license, with plans to initiate drilling in the Tinigua Block in the second quarter of 2013.
• Continue extended testing and evaluation in Puerto Gaitan-1 and Atarraya-1 wells.
• In Colombia, the extractive industries are experiencing delays in the process of acquiring drilling permits. While the Company continues to progress its exploration drilling program, part of this progress is dependent upon receipt of such government approvals or permits.

Summary Financial Information:

About PetroNova:

The Company, through its subsidiaries, is engaged in the exploration for, and the acquisition and development of, oil and natural gas resources in South America, specifically in Colombia. The Company's assets currently include the Company's interests in the PUT-2 and Tinigua Blocks located in the Caguan-Putumayo Basin in Colombia, both of which are operated by the Company, and the non-operated CPO-06,CPO-07 and CPO-13 Blocks located in the Llanos Basin in Colombia. The common shares of the Company trade on the TSX Venture Exchange under the stock symbol "PNA".

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.

Forward-Looking Information:

Certain statements contained in this press release constitute forward-looking statements. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "intend", "plan", "continue", "estimate", "budget", "targeting", "project", "expect", "may", "will", "might", "should", "could", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements. Such statements represent the Company's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Management believes the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

In particular, this press release contains forward-looking statements pertaining to the Company's future exploration and development activities and the timing thereof, including the Company's seismic acquisition and drilling plans. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things: general economic, market and business conditions in Colombia and globally; future crude oil and natural gas prices; the continued availability of capital, undeveloped lands and skilled personnel; the ability to obtain equipment in a timely manner to carry out exploration and development activities; the regulatory framework governing royalties, taxes and environmental matters in Colombia and any other jurisdictions in which the Company may conduct its business in the future; the ability of the Company to obtain the necessary approvals, permits and licences to conduct its operations; future capital and exploration expenditures to be made by the Company; future sources of funding for the Company's exploration program; the geography of the areas in which the Company is exploring; and adequate weather and environmental conditions.

Actual results could differ materially from those anticipated in these forward-looking statements as a result of certain risk factors, including, but not limited to: general economic, market and business conditions; risks related to the exploration, development and production of oil and natural gas; risks inherent in the Company's international operations, including security and legal risks in Colombia; risks related to the timing of completion of the Company's projects; competition for, among other things, capital, the acquisition of resources and skilled personnel; actions by governmental authorities, including changes in government regulation and taxation; the failure of the Company to obtain the necessary approvals, permits and licences to conduct its operations; environmental risks and hazards; the availability of capital on acceptable terms; the failure of the Company or the holder of certain licenses or leases to meet specific requirements of such licenses or leases; adverse claims made in respect of the Company's properties or assets; failure to engage or retain key personnel; geological, technical, drilling and processing problems, including the availability of equipment and access to properties; failure by counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; and the other factors discussed under the heading "Risk Factors" in the Company's annual information form for the year ended December 31, 2011 and the Company's other continuous disclosure documents filed from time to time with applicable securities regulatory authorities in Canada and which may be accessed on the PetroNova's SEDAR profile at www.sedar.com.

Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements included in this press release are expressly qualified by this cautionary statement and are made as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

SOURCE: PetroNova Inc.