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Press release from CNW Group

PetroNova Announces Second Quarter 2012 Results

Thursday, August 23, 2012

PetroNova Announces Second Quarter 2012 Results07:00 EDT Thursday, August 23, 2012CALGARY, Aug. 23, 2012 /CNW/ - PetroNova Inc. ("PetroNova" or the "Company") (TSXV: 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 June 30, 2012."To date, PetroNova has made three hydrocarbon discoveries in the CPO Blocks, with plans to initiate extended testing on these wells and complete the drilling program in the Llanos Basin by first quarter of 2013," said Antonio Vincentelli, President and Chief Executive Officer of PetroNova. "We have also made progress in the Putumayo Basin this quarter, such that we anticipate drilling in PUT-2 to commence by the end of this year, or early next year."PetroNova's condensed consolidated interim financial statements as at and for the quarters ended June 30, 2012 and 2011, together with the notes thereto, and the related management's discussion and analysis for the periods then ended,will be availableunder the Company's profileon SEDAR at www.sedar.com.Since April 1, 2012, the Company has:  Announced an oil discovery at the Pendare 1 well in CPO-13,where the well flowed a cumulative 366 barrels of 14.4 API gravity oil during testingAnnounced an oil discovery at the Atarraya 1 well in CPO-7,where the well flowed 23 API gravity oil at a natural flow rate of 830 barrels of oil per dayAnnounced a non-brokered private placement of units for aggregate proceeds of $30 million of which $27 million will be collectively subscribed for by International Finance Corporation, a member of the World Bank Group, and the IFC African, Latin American and Caribbean Fund, LPInitiated an extended well test on the Puerto Gaitan well in CPO-6Completed the Pilon-1 exploration well in CPO-7, which has been plugged and abandonedCompleted the Camaleon-1 exploration well in CPO-6, which has been plugged and abandonedObtained an extension for the phase 1 exploration period of the PUT-2Block to February 2013Completed processing of 109 km2 of 3D seismic data in the Tinigua Block and has moved into phase 2 of the exploration program which includes drilling of exploration wellsCompleted processing of 203 km of 2D seismic data from the "El Tigre" area of CPO-13Outlook: PetroNova is continuing with its scheduled exploration plans and commitments and anticipates the following activities to occur in the remainder of 2012:Commence drillingof thethreeremainingexploration wells in the Llanos Blocks with extended testing of discoveriesInitiate drilling in the PUT-2 Block in the fourth quarter of 2012, upon receipt of the environmental licenseComplete interpretation of 109 km2 of 3D seismic data in the Tinigua Block and select the first exploratory well locationSummary Financial Information:  Three months ended JuneYear ended(US$, except shares and data per share)201220112011Revenues47,55877,012         312,138Net Loss(1,333,118)(1,503,962)       (7,024,062)Loss per share(0.01)(0.01)                (0.04)Weighted average shares165,301,302165,301,302165,301,302Working Capital10,722,49446,479,990      34,129,086Cash and equivalents and short-term investments13,522,73350,175,24636,980,160Exploration and evaluation assets59,555,95229,147,82640,952,234Block deposits5,504,0408,009,8534,997,925Total assets86,859,87289,688,61786,043,274Shareholders' equity80,370,46384,691,14882,230,476About 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.For further information: Antonio VincentelliPresident & Chief Executive Officer   954 317 3990 antonio.vincentelli@petronova.com Stelvio Di CeccoChief Financial Officer 954 317 3990 stelvio.dicecco@petronova.com Abby Garfunkel Investor Relations 403-218-2887 agarfunkel@equicomgroup.com