Campeese
6 years ago
Massive news, $23 MILLION USD Contract! Company is going to be a monster!
VANCOUVER, June 21, 2018 /CNW/ - PentaNova Energy Corp. (the "Company" or "PentaNova") (TSXV: PNO), is pleased to announce the signing of the SN-9 Farm Out Agreement (the "Agreement") with Panacol Oil & Gas ("Panacol"), a wholly owned subsidiary of LATAM Oil & Gas. Under the terms of the Agreement, Panacol will fully fund the Company's commitments during the first phase of the SN-9 Exploration and Production Contract for the amount of US$22.29 million, which will give Panacol the right to earn up to a 40% economic beneficial interest in the SN-9 Block from the Company's 80% economic beneficial interest. Assignment of working interests for both parties is subject to approval from the National Hydrocarbon Agency of Colombia. The Agreement is expected to close within the next 30 days during which time Panacol will be required to place US$3.0 million in escrow to fund near-term activities. In addition, Panacol is required to provide a standby letter of credit for US$3.0 million to guarantee further payments into the escrow account and pay approximately US$650,000 in past costs. Under the terms of the Agreement, Panacol will recover 50% of the funds invested from 70% of the proceeds of the Company's net production.
Ralph Gillcrist, President and CEO, commented:
"The SN-9 block has all the hallmarks of being an exceptional core asset for PentaNova being adjacent to the prolific Canacol Energy Ltd. ("Canacol") gas producing assets. By entering into this Agreement with Panacol, PentaNova is in a position to execute the exploration program required to confirm the gas potential of the block. We look forward to leveraging the abundant experience of the Panacol team to complement the PentaNova team and accelerating our operational activities."
SN-9 Block
The 313,638 acre SN-9 block is located in the northern province of Cordoba, in the Lower Magdalena Basin of Colombia directly adjacent to, and west of, the major gas producing area operated by Canacol. Canacol produces 88% of its 106 million cubic feet per day ("MMscfd") gas production from this area and reported aggressive expansion plans in their Q1 2018 investor update on May 16, 2018, reflected in their 1Q 2018 Conference Call Transcript published on the Canacol website (www.Canacolenergy.com). PentaNova believes that the gas play being developed by Canacol extends into the south eastern portion of the SN-9 block. The SN-9 block has over 736 km of 2D seismic lines and one discovery well, Hechizo-1, drilled in 1992 that tested a combined rate of 10.3 MMscfd, confirming the likely extension of the gas play from Canacol's area into SN-9. Given the proximity to the gas infrastructure that supplies the north of Colombia, the south eastern structures of the SN-9 block will be the focus of immediate activities for the Company.
SN-9 Future Planned Activities
The Company anticipates completing the prior consultation process required to acquire seismic in the block by the end of June 2018 and plans to issue tenders for the acquisition of 140km2 of 3D seismic, and related services, over the next two weeks. The Company expects to acquire the 3D seismic in October and November of 2018.
The prior consultation and permitting process required for drilling on the block is expected to start in July 2018, as soon as the prior consultation for seismic is complete. On completion of this process, anticipated for mid 2019, civil works will be initiated with a view to spudding the first exploration well midyear 2019.
About PentaNova
PentaNova is investing in proven leadership and technology to develop oil and natural gas fields it has acquired in areas surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience in Latin America and global energy development, PentaNova's leadership is working with local partners and service providers, including YPF, Argentina's respected energy producer, to deliver the energy for Latin America's future.
Ricardo
6 years ago
Pentanova Energy Announces Farmout Agreement on Colombian Gas Property
NEWS PROVIDED BY
PentaNova Energy Corp.
Jun 21, 2018, 23:00 ET
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VANCOUVER, June 21, 2018 /CNW/ - PentaNova Energy Corp. (the "Company" or "PentaNova") (TSXV: PNO), is pleased to announce the signing of the SN-9 Farm Out Agreement (the "Agreement") with Panacol Oil & Gas ("Panacol"), a wholly owned subsidiary of LATAM Oil & Gas. Under the terms of the Agreement, Panacol will fully fund the Company's commitments during the first phase of the SN-9 Exploration and Production Contract for the amount of US$22.29 million, which will give Panacol the right to earn up to a 40% economic beneficial interest in the SN-9 Block from the Company's 80% economic beneficial interest. Assignment of working interests for both parties is subject to approval from the National Hydrocarbon Agency of Colombia. The Agreement is expected to close within the next 30 days during which time Panacol will be required to place US$3.0 million in escrow to fund near-term activities. In addition, Panacol is required to provide a standby letter of credit for US$3.0 million to guarantee further payments into the escrow account and pay approximately US$650,000 in past costs. Under the terms of the Agreement, Panacol will recover 50% of the funds invested from 70% of the proceeds of the Company's net production.
Ralph Gillcrist, President and CEO, commented:
"The SN-9 block has all the hallmarks of being an exceptional core asset for PentaNova being adjacent to the prolific Canacol Energy Ltd. ("Canacol") gas producing assets. By entering into this Agreement with Panacol, PentaNova is in a position to execute the exploration program required to confirm the gas potential of the block. We look forward to leveraging the abundant experience of the Panacol team to complement the PentaNova team and accelerating our operational activities."
SN-9 Block
The 313,638 acre SN-9 block is located in the northern province of Cordoba, in the Lower Magdalena Basin of Colombia directly adjacent to, and west of, the major gas producing area operated by Canacol. Canacol produces 88% of its 106 million cubic feet per day ("MMscfd") gas production from this area and reported aggressive expansion plans in their Q1 2018 investor update on May 16, 2018, reflected in their 1Q 2018 Conference Call Transcript published on the Canacol website (www.Canacolenergy.com). PentaNova believes that the gas play being developed by Canacol extends into the south eastern portion of the SN-9 block. The SN-9 block has over 736 km of 2D seismic lines and one discovery well, Hechizo-1, drilled in 1992 that tested a combined rate of 10.3 MMscfd, confirming the likely extension of the gas play from Canacol's area into SN-9. Given the proximity to the gas infrastructure that supplies the north of Colombia, the south eastern structures of the SN-9 block will be the focus of immediate activities for the Company.
SN-9 Future Planned Activities
The Company anticipates completing the prior consultation process required to acquire seismic in the block by the end of June 2018 and plans to issue tenders for the acquisition of 140km2 of 3D seismic, and related services, over the next two weeks. The Company expects to acquire the 3D seismic in October and November of 2018.
The prior consultation and permitting process required for drilling on the block is expected to start in July 2018, as soon as the prior consultation for seismic is complete. On completion of this process, anticipated for mid 2019, civil works will be initiated with a view to spudding the first exploration well midyear 2019.
About PentaNova
PentaNova is investing in proven leadership and technology to develop oil and natural gas fields it has acquired in areas surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience in Latin America and global energy development, PentaNova's leadership is working with local partners and service providers, including YPF, Argentina's respected energy producer, to deliver the energy for Latin America's future.
Forward-Looking Information
This news release contains "forward-looking statements" and "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of material factors, assumptions, risks and uncertainties, many of which are beyond the control of the Company.
Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "continues", "projects", "forecasts", "potential", "budget" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: Panacol's funding of the Company's commitments during the first phase of the SN-9 Exploration and Production Contract for the full amount of US$22.29 milllion, the expected closing date for the Agreement, Panacol's recovery of the Company's share of the investment from 70% of the proceeds of the Company's net production, the quality of the SN-9 block as an exceptional core asset for the Company, the Company's ability to execute the exploration program required to confirm the gas potential of the SN-9 block, the Company's leveraging of the experience of the Panacol team to complement its own team, the Company's plans to accelerate its operation activities, the extension of the gas play from Canacol's gas producing area adjacent to the SN-9 block into the SN-9 block, the Company's intention to focus on the south eastern structures of the SN-9 block in the immediate term, the Company's completion of the prior consultation process required to acquire seismic in the SN-9 block by the end of June 2018 and plans to issue tenders for the acquisition of 140km2 of 3D seismic, and related services, over the next two weeks, the Company's expectations regarding the timing of receipt of such 3D seismic data, the Company's intention to start the prior consultation and permitting process required for drilling on the SN-9 block in July 2018 and the timing thereof, the Company's plans regarding the initiation of civil works and the timing thereof, and the Company's plans regarding the timing for the spudding of the first exploration well on the SN-9 block.
Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements are made, undue reliance should not be placed on the forward-looking statements because the Company can give no assurances that such statements and information will prove to be correct and such statements are not guarantees of future performance. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual performance and results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: known and unknown risks, including those set forth in the Company's Management's Discussion and Analysis for the year ended December 31, 2017 (a copy of which can be found under PentaNova's profile on SEDAR at www.sedar.com); the risks associated with the oil and gas sector, including current and expected oil and natural gas prices; exploration and development costs and delays; reserves discovery and decline rates; pipeline and transportation capacity; weather, health, safety and environmental risks; integration of acquisitions, competition, and uncertainties resulting from potential delays or changes in plans with respect to acquisitions, development projects or capital expenditures and changes in legislation including, but not limited to, tax laws, royalties, incentive programs and environmental regulations; stock market volatility and the inability to access sufficient capital from external and internal sources; operations in foreign jurisdictions; general economic, market or business conditions; global economic events; changes to PentaNova's financial position and cash flow; the availability of qualified personnel, management or other key inputs; currency exchange fluctuations; changes in political and security stability; risks and uncertainty related to distribution and pipeline constraints; and other unforeseen conditions which could impact the Company. Accordingly, readers should not place undue importance or reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.
Statements, including forward-looking statements, contained in this news release are made as of the date they are given and the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with applicable securities regulatory authorities and may be accessed under PentaNova's profile on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE PentaNova Energy Corp.
For further information: PentaNova Energy Corp., Ralph Gillcrist, CEO & President; Chris Reid, CFO, Tel: (604) 609-6110, E-mail: info@pentanovaenergy.com
Organization Profile
Ricardo
7 years ago
PENTANOVA ENERGY PROVIDES AN UPDATE ON THE TESTING OF ISTANBUL-1
VANCOUVER, B.C., April 3, 2018 – In light of the recent negative trading in its shares since its March 28 news release on the Istanbul-1 well, PentaNova Energy Corp. (the “Company”) (TSXV: PNO), would like to clarify both the drilling results and the factors surrounding the testing the Istanbul-1 well (“the well”).
The well, located in the Maria Conchita block in northern Colombia, commenced drilling on February 27, 2018 and reached a total depth of 8,740 feet measured depth (“MD”) on March 21st. When drilling through potential reservoirs of the Jimol formation, the same formation that tested a combined rate of 18 million cubic feet per day of gas in the Aruchara-1 discovery well, gas shows were observed on the mud log.
Open hole logs run between March 21st and March 24th revealed 88.5 feet of low resistivity, potential gas bearing sands with an average porosity of 20.3%. During logging, 32 sidewall core plugs were cut and recovered, the analysis of which supports the interpretation of favourable reservoir properties for the potential gas bearing reservoir intervals identified on logs.
After logging, a 7-inch liner was run to a depth of 8,732 ft MD and cemented. Subsequent cased hole logs acquired on March 30th showed a good quality cement bond across the intervals of interest.
Based on the interpretation of the open hole logs and mud log, 12 separate intervals covering a total thickness of 62.4 feet were selected and perforated for testing.
Currently, a permanent production completion is being run in hole, after which the drilling rig blow-out-preventers will be removed and a production Christmas Tree installed and pressure tested.
Following completion of the well, flow testing of the potential gas bearing perforated intervals will start and will last for three to four days. The testing will consist of a series of flow periods at different rates, punctuated by shut-in periods to measure the pressure response of the well. Towards the end testing, a production log will be run in order to determine the relative contribution of the different perforated intervals to the overall total flow.
Once the testing of the well has been completed, PentaNova will provide a full and comprehensive update on the results of the test.
About PentaNova
PentaNova is investing in proven leadership and technology to develop oil and natural gas fields it has acquired in areas surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience in Latin America and global energy development, PentaNova’s leadership is working with local partners and service providers, including YPF, Argentina’s respected energy producer, to deliver the energy for Latin America’s future.
Forward-Looking Information
Except for the statements of historical fact, this news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about the completion of the operations described herein, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms of such transaction.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company’s inability to perform the proposed operations.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company’s ability to complete the planned operations and activities. The Company has also assumed that no significant events will occur outside of the Company’s normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For Further Information
PentaNova Energy Corp.
Ralph Gillcrist
CEO & President
Chris Reid
CFO
Tel: (604) 609-6110
Email: info@pentanovaenergy.com
farml1234
7 years ago
Big draw from the energy report today
Summary of Weekly Petroleum Data for the Week Ending August 11, 2017
U.S. crude oil refinery inputs averaged about 17.6 million barrels per day during the week ending August 11, 2017, 9,000 barrels per day less than the previous week’s average. Refineries operated at 96.1% of their operable capacity last week. Gasoline production decreased last week, averaging over 10.0 million barrels per day. Distillate fuel production decreased last week, averaging 5.3 million barrels per day.
U.S. crude oil imports averaged over 8.1 million barrels per day last week, up by 364,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged over 8.0 million barrels per day, 4.7% below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 667,000 barrels per day. Distillate fuel imports averaged 167,000 barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 8.9 million barrels from the previous week. At 466.5 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year. Total motor gasoline inventories remained unchanged last week, and are near the upper limit of the average range. Finished gasoline inventories decreased while blending components inventories increased last week. Distillate fuel inventories increased by 0.7 million barrels last week and are in the upper half of the average range for this time of year. Propane/propylene inventories increased by 1.6 million barrels last week but are in the lower half of the average range. Total commercial petroleum inventories decreased by 7.3 million barrels last week.
Total products supplied over the last four-week period averaged 21.2 million barrels per day, up by 2.0% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged over 9.7 million barrels per day, down by 0.3% from the same period last year. Distillate fuel product supplied averaged over 4.3 million barrels per day over the last four weeks, up by 15.9% from the same period last year. Jet fuel product supplied is up 0.8% compared to the same four-week period last year.
conix
7 years ago
Billionaire Investors Backing An Oil Price Turnaround
By James Burgess - Jul 30, 2017, 6:30 PM CDT
Here’s something few energy investors know...`
The Latin American energy sector is at its most lucrative turning point ever.
In Argentina, while all the supermajors are tied up in the Vaca Muerta shale, massive heavy oil opportunities are up for grabs.
In Colombia, demand for gas is dangerously outpacing supply, and the country’s largest gas field is declining rapidly. They need 65MMscf to come online every year just to keep pace. And gas in Colombia fetches attractively higher prices than the well-known Henry Hub.
One oil story in particular has an enormous profit potential, led by some of the smartest energy investors out there--a team that is renowned for being in the right place at the right time.
This company has massive early mover advantage in Argentina’s heavy oil, and it’s got Colombia cornered as well, with drill-ready natural gas developments.
They’re also looking at $30 million per year in immediate free cash flow from producing and near-term producing assets.
This team has already created a line-up of billion-dollar-plus companies --- and now they’re spearheading another huge opportunity.
This team of geological experts is backed by legendary mining money that has so far turned almost every project it has touched into gold.
Now this dream team (see below) is preparing to do it again with PentaNova Energy Corp. (TSX:PNO.V; OTC:PENYF) where they’re leveraging their high-value-creation track record in Latin America, in some of the richest oil and gas fields with proven reserves.
This is a billionaire-backed management plan, and the key people behind it are the same ones who took Pacific Rubiales from rags to riches in just a few years.
One is a famous Canadian mining maverick who requires no introduction—the legendary Frank Giustra, who has made his billions thinking big when others have been thinking small. He is the master of impeccable timing.
The other is the mastermind of an oil resource that went from 9,000 barrels per day to over 300,000 bpd in just three years.
Their modus operandi is simple: Identify grossly undervalued oil and gas plays in proven grounds and then create shareholder value through an acquire/optimize/exploit model.
And they don’t do anything small. They build big plays from small beginnings but with enormous growth runways. So investors should pay careful attention....
Here's why you should keep an eye on PentaNova (TSX:PNO.V; OTC:PENYF)
1) Billionaire-backed Team of Legends
Let’s start with the people behind PentaNova first, because this is an incredible management play.
Giustra and Serafino Iacono made a fortune in Colombia once—and now, they’re planning on doing it again. But this time they’re widening their net to include some phenomenal heavy oil assets in Argentina as well.
Giustra has already created tens of billions in shareholder value:
• He built up giant Goldcorp. (NYSE:GG) in 2000, and today it’s one of the world’s largest gold-mining companies, trading at a market cap of nearly $11 billion.
• He’s also behind the 20-oscar-winning entertainment company Lion’s Gate, which raked in $2.4 billion in revenue in 2015.
Iacono’s already created billion-dollar value in Colombian oil & gas.
• Giustra and Iacono built Petroamerica, a Colombian oil and gas company in 2010. They grew it from 150 bpd to over 9,000 bpd in just two years.
• In 2008, Giustra financed Iacono’s Pacific Stratus Energy with $5 million in capital. It grew into Pacific Rubiales Energy, the biggest non-state-owned oil company in Colombia. It’s worth $6.4 billion. Pacific Rubiales went from $7 a share in 2009 to $36 a share in 2011. That’s a 414% gain.
Iacono was one of the first to take advantage of Colombia’s resource sector and he’s been around the block here—very successfully. He is even said to have had the country’s line-up of presidents on speed dial. As the CEO of PentaNova, he’s got the financial backing of Giustra—which almost guarantees that capital will follow the company around.
Giustra and Iacono also own Blue Pacific, which is building ports in Cartagena and Barranquilla, and owns power plants, farms, mines and a myriad of infrastructure assets across Colombia.
As a journalist who interviewed Iacono recently noted after talking with the legend: “One of my biggest takeaways from Colombia is that if you want to be a real resource developer – and not just a promoter of moose pasture—you need the vision and the guts to chase the impossible. But more than anything, you need the right people around you.”
Giustra doesn’t put his money into anything short of a dream team, and PentaNova’s got it—even beyond Iacono:
• CEO Luciano Bondi has served in senior positions at top oil and gas companies in South America. He is a former CEO of PetroMagdalena, which was sitting on 19 properties in Colombia and producing 3.6 Mboe/d when it was acquired by Pacific Rubiales in 2012 for $225 million. He managed over 1 million bbls/day while heading up Venezuela’s state oil company Maraven. Bondi also served as VP of operations for Venezuela-based CPVEN, an oil well cementing and services company.
• CFO Chris Reid is a Canadian public market expert who is not only strong with finance but was instrumental in salvaging Petro Dorado when he became CEO and restructured the company – selling off assets and regaining around $40 million for investors.
• President Gregg Vernon is a professional engineer with over 38 years of experience in the petroleum industry, managing operations from Colombia to China.
• Warren Levy, president of PentaNova’s Argentine operations, has over 20 years of experience in upstream and downstream projects from Latin America to Vietnam.
What really matters in this business is an excellent first-hand grasp of the nature of the business plus healthy interpersonal relations with key figures--and this team has it in spades.
#2 Back to the Scene of Success: Massive Opportunities in Colombia
PentaNova (TSX:PNO.V; OTC:PENYF) has already enjoyed good drilling returns in the Pacific Reserves where its management team has established an enviable growth track-record.
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And now the company has shifted its attention to the oil- and gas-rich fields of Colombia, just next to the prolific Chuchupa Block, which accounts for 40 percent of the country’s entire gas output.
They have several prized gems in their crosshairs…to acquire, develop, exploit and unlock their full potential.
The company has already secured three acquisition opportunities in Colombia:
• Maria Conchita: A gas field right next to the Chuchupa Block, which has been in production for 35 uninterrupted years and is currently owned by supermajors Chevron (NYSE:CVX) and Ecopetrol SA (NYSE:EC). The dry and sparsely populated terrain makes for simple and inexpensive logistics. Some of its key features include:
• 2P Net Reserves of 15.0MMBoe (99 percent Gas).
• 2P After-Tax IRR (Internal Rate of Return) of 54 percent
.
• 2 gas fields already in development.
Maria Conchita will require an estimated $70 million in capex to develop the field at a high working interest rate of 80 percent, meaning potentially high ongoing returns on investment.
• Tiburón: This wildly promising field has an Estimated Total Exploratory Resources of 267 MMBoe (100 percent Gas). It’s in the same basin as the Chuchupa, and is close to the Chuchupa gas pipeline hub for quick access to Colombian gas markets.
Tiburón requires US$430 million capex to develop but with a potentially high IRR of 109 percent.
• Sinu-9: A block with an estimated 2P Gross Recoverable asset of 29.4 MMBoe (100 percent Gas) and an estimated Exploratory Gross Resources 40.7 MMBoe (91 percent Gas).
The block is very close to the Caribbean export terminal. That means it’s served by excellent infrastructure and open access to Canacol’s oil and gas pipelines. Bottom line: This is likely to lead to high well-head netback prices.
# 3 Huge Heavy Oil Potential in Argentina
But Colombia is just one of PentaNova’s plays...again, this dream team doesn’t do anything small. PentaNova has established a footprint in Argentina, and the heavy oil it’s gunning for is even more spectacular than its Colombia assets.
The team behind PentaNova (TSX:PNO.V; OTC:PENYF) has been among the lucky few to obtain permits to produce in the famous Argentine ‘Pipeline Block’.
This region went from zero to 30,000 barrels of oil per day in five years—and there’s no better place to be right now. That’s half a billion dollars... possibly the fastest ramp up in history... and it’s just getting started.
It's one of the first regions to implement CHOPS (Cold Heavy Oil Production with Sand) technology to enable easy extraction of heavy oil deposits.
And is located conveniently close to the Argentine Pipeline.
The company has targeted 3 blocks for acquisition in the region.
• Llancanelo: a heavy oil field with resources which partner YPF pegs at over 3 billion bbls OOIP. This field is currently producing under cold flow and is ready for immediate and large-scale development.
• KM-8: with an Estimated Total Gross Resources of 5 Million bbls (3 to 5 percent Gas). Located in the San Jorge basin, this block has 8 active wells, with another 50 workover candidates and 14 PUD locations with a range of 1,500 ft to 3,000 ft. Among the attractive economics, we’re also looking at low-cost re-development.
• Santa Cruz Land of Giants: When it comes to heavy oil, this is a monster, with Estimated Total Gross Resources Potential of 500 MM BOE+.
• Southern Argentina play: PentaNova is also eyeing a light oil and gas play in southern Argentina with an Estimated Total Gross Resources of 15 MMBoe (75 percent Gas).
PentaNova has picked the right time to invest in these massive resources since oil and gas sales in the country are quickly moving to world pricing.
#4 Great Return Potential, Near-Term Positive Cash Flow
In sum, the three Colombian oil and gas fields hold a total of 303.8 MMBoe, with a Net Present Value of $1.6 billion and a healthy combined IRR of 32 percent.
The near-term financial outlook looks great, with operations in the three fields expected to be free cash flow positive as early as 2020.
Meanwhile, the three Argentinian assets hold about 515 MMBoe in Estimated Exploratory Gross Resources worth about $8.78 billion at current prices and another 5 million bbls worth another $229 million.
#5 Undervalued with World-Class Assets
PentaNova Energy Corp (TSX:PNO.V; OTC:PENYF) is a $192-million market cap company that's sitting on assets potentially worth billions.
The company has only issued shares worth $155 million in the secondary market... so there’s room for over 5,000 percent growth.
It's a very attractive model, with minimal cash going into SG&A and capex to maintain infrastructure. The company expects production to hit 50Mboe/d by 2019-2021, nearly 10 times current production.
With such a dramatic production potential, it isn’t unreasonable to expect the company's shares to make strong gains in the coming months and years.
BIG Announcement coming soon...
Investors will want to get in position now.
That’s because PentaNova entered into a mutual agreement with PMI Resources Limited (TSXV:PMI) in January 2017 for a reverse takeover (RTO)..
The transaction involves PMI acquiring all of PentaNova's outstanding shares in exchange for PMI common shares. The RTO was approved at the end of March, and PentaNova's ticker was changed to PL.
The new acquisitions in Argentina, which will bring a very fundamental, material change to the size, scale and scope of the company.
The company expects to come off the halt sometime towards the end of July 2017.
Given the scale of asset acquisitions by the company and the relatively low valuation of its shares, investors who buy now and hold the shares for the long-haul could end up realizing very attractive returns in the years to come.
inversor86
11 years ago
http://www.stockhouse.com/companies/bullboard/v.pmi/petromanas-energy-inc?postid=22561580
Posted on May 13, 2014 by Tommy Humphreys
Petromanas Energy is drilling one of the most highly anticipated oil wells in the world today, the Molisht-1 well in Albania, which has the potential to transform the Calgary-based junior oil company, if good results hit the market in Q3 of 2014.
Backed by noted resource financier and philanthropist, Frank Giustra, and partnered with energy super major, Royal Dutch Shell, Petromanas is targeting light oil in deep tanks on shore in Albania.
In November, 2013 the company announced that their first well, Shpirag-2, made a discovery, despite complications with the well bore during drilling.
A second well not far away, Molisht-1, is drilling currently and has caught quite a bit of attention.
Oil and Gas Investments Bulletin editor Keith Schaefer wrote on Feb 24, 2014 that if Molisht-1 flows at commercial rates and the company has further exploration success, shares in Petromanas Energy could climb by 20 fold or more.
The company hosted a site visit in Albania last month for Mr. Schaefer, US Global Investors CEO Frank Holmes, Casey Research founder Doug Casey, Casey Energy Report editor Marin Katusa, and other investors.
Mr. Katusa spoke with Petromanas Energy CEO Glenn McNamara last week by Skype and has published the interview on Youtube.
Mr. McNamara started by explaining the learning curve for drilling in Albania which has contributed to its second well so far having no difficulties.
“We have a shale zone above the reservoir that can be from anywhere from 800 to 1200 metres that is fairly unstable. It is a necessary zone, it’s our seal for this play. It’s what traps the oil in this structure, the carbonate structure that’s beneath what we’re targeting, but it tends to be quite unstable in terms of flaking and we had the well cave in on us three times on the last one and since then we’ve learned a number of things and of course you have to appreciate there’s a bit of trial and error, but we’ve worked with the mud system. We’re using heavier mud then we did the last time.”
“We got a lot of our information from talking to the folks in Italy. ENI’s operating there quite a few wells and they have a similar flysch zone that they’re dealing with. So we changed the mud system, we changed the downhole drilling, we tried not to rotate and so we’re drilling with downhole motors and not disturbing the flysch. We’re doing continuous wafer trips, which means we drill a bit and then we come out and clean the hole repetitively, more often than we normally do it.”
“We also have a tool on surface … that allows us to continuously circulate. So the idea here is to keep that hole as clean as you can. We are also monitoring our cuttings on surface. So we know at any given point in time if there’s any excess cuttings coming up the hole. So with all of those factors, we’ve been able to monitor this well much closer. We drilled a little bit slower than we did on the last one, but as you said, so far we’ve had no sign of problems.”
The conversation turned to the diameter of the well bore which had to be reduced on the first well, thus restricting flow rates. The follow up well, Molisht-1, will be much larger in diameter.
“Well that was another learning from the last well. We designed it more like a well we have in North America and didn’t build in sufficient contingency. The larger casing that you start with gives you … more casing sizes to deal with as you go down the hole. So we went up one more casing string and started with a 30 inch hole, went down to a 24?, then an 18?, and now 13 and 7/8.”
“What that allows us is more flexibility if we run into problems running down the hole to case off unstable zones. This gives us the opportunity to get to the reservoir with an 8 inch hole if everything goes fine. So more casing strings means more flexibility in terms of controlling the stability of a hole and when we set casings.”
The interviewer asked Mr. McNamara how deep the Molisht-1 well is currently, to which the CEO responded to wait for a pending update from the company with this material information. McNamara added, “We’re pretty pleased with how the well has gone so far.”
Mr. McNamara provided a results timeframe for the Molisht-1 well.
“We’re hoping to TD near the end of second quarter and then test the well sometime in the third quarter. As you appreciate, we TD’d the well to complete it with the rig and move the rig off to another location. Then we mobilize all the testing equipment and all of that does take some time. You know, four to five weeks depending on where the equipment is coming from. So it will be sometime in the third quarter when we’ll test the well.”
Petromanas hopes to encounter a lot of rock fractures in deep drilling, its CEO explained.
“One of the benefits of our current play is that we see the rock that we’re drilling 5,000 metres down has outcropped on surface. So this is quite tight rock, it’s carbonate on surface and down 5,000 metres and porosities and permeabilities are quite low. So to get the flow rates that we need with this type of reservoir, we need natural fractures. So we’re looking for areas where the rock has been thrusted up and naturally busted and cracked up, it gives us these fractures and what we need to understand is what is the orientation of these fractures. Then we can drill against that orientation and try and intersect as many fractures as possible.”
“The more fractures we intersect with a deviated well bore, the better chance we have getting optimum or maximal rates. So on surface we can see these fractures that have outcropped in the mountains and we get to see what their orientation is, their direction, the amount of fracturing… We have a reservoir consultant who’s working with us, who’s done a lot of work in Italy, helping us understand what is the best orientation and what’s the best deviation to drill this well at.”
“So the fractures are key to our deliverability and understanding those fractures is obviously important in terms of placing the well bore.”
After a brief discussion on the new interest in Albania from other international oil firms, Mr. McNamara provided the interviewer with his expectations for the future of Petromanas Energy.
“Having Albania still our core business and we’re very focused on that and we need to get our results. You’re right, we have this well to go down and one more with Shell carrying us. After that, we’ll see what the commitments will be and what the development will be. We also have acreage in France that we very much like. We are doing a resource assessment there and renewing our permits. We have a gas opportunity in the South of France that looks very exciting. There’s lots of infrastructure there and we have some acreage in Australia that we’re looking to do something with. So after Albania, there are some other things for us, but Albania is our key focus right now.”
Read more at http://www.stockhouse.com/companies/bullboard/v.pmi/petromanas-energy-inc#ffgeCIhtusqCW4bq.99
inversor86
11 years ago
Why Shell Needs This Junior's Big Play
Feb. 27, 2014 2:12 PM ET | 2 comments | About: PENYF, Includes: RDS.A, RDS.B
http://seekingalpha.com/article/2055083-why-shell-needs-this-juniors-big-play?isDirectRoadblock=false&source=email_rt_article_readmore&app=1&uprof=46
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Elephant hunting for huge international oil plays usually means going into (very) politically risky areas. That's what makes junior Petromanas (OTCPK:PENYF) stand out from the crowd.
They're chasing a potential 500-800 million barrel target in Europe-Albania to be exact. Lots of energy investors are familiar with Bankers Petroleum and their heavy oil play there-it's the largest onshore oilfield in all of Europe.
But few people know about Petromanas. I expect that to change in a hurry in Q3 2014 if their next well hits. They already have one success under their belt.
But even better, they're getting carried for $100 million on exploration and seismic costs on two high-impact Albanian blocks by oil industry super major Royal Dutch Shell (RDS.A) (RDS.B). Plus, Shell paid them cash for their sunk costs.
It's rare to see a super major aggressively seek out a partnership with a company the size of Petromanas. Shell's interest is a huge validation of the true potential of the assets that Petromanas owns.
However, Shell knew the geology very well - they're already a partner in two large producing properties that are analogous to the Petromanas property in Albania, just across the Adriatic Sea from Albania in Italy.
Not only does Shell bring to the party big financial and geological resources, but also in this case specific field experience in this particular type of play. (It's a sub-thrust play which is very similar to what you see in the Canadian foothills in western Alberta).
I was intrigued by Shell's interest in this play so I called up Petromanas CEO Glenn McNamara to get some background.
He said Shell had started expressing interest in the property even before Petromanas had formerly opened up a data room in 2011 to seek out a joint venture partner. Once the data room was officially opened Shell bid on the property.
McNamara said that Shell's joint venture bid was clearly one that Shell knew Petromanas would find attractive. Shell didn't do any beating around the bush. It wanted these assets.
In February 2012 Petromanas had Shell in as a partner for 50%, and by June of the next year (after the first well) Shell had upped its interest to 75%. Again, they knew the geology.
Those two Italian properties are big, 500 million and 300 million barrel fields respectively.
The first field started production 14 years ago and it is still producing over 80,000 barrels per day. The second field will commence production in 2016 and is expected to hit 50,000 bbls/day quickly.
Individual wells on those fields can be prolific with rates ranging from 1,000 bbls/day up to 7-10,000 bbls/day.
Shell needs multi-hundred million barrel discoveries to move the needle. Clearly Shell thinks it has a good chance of finding something like that in Albania.
A positive needle move is something Shell shareholders would welcome. Despite spending $46 billion on exploration and development in 2013 Shell's production actually declined by 5% to 3.25 million barrels a day year on year. 2013 earnings were also down from 2012.
Albanian Blocks 2-3 - Activity to Date
Shell and Petromanas have already drilled a well (Shpirag-2) on these blocks.
The result of the drilling was a light oil discovery. The well was tested in the fourth quarter of 2013 and flowed at rates of 1,500 to 2,200 boe/day (60% oil).
Drilling problems at Shpirag-2 meant they had to tap the reservoir with smaller diameter hole at the bottom-so the rates of the flow test make it difficult to predict how much oil the well can produce.
But the discovery at Shpirag-2 did confirm there is definitely oil in the tank.
The question now becomes "how much oil"?
To help determine that, Petromanas and Shell will be drilling another well (Molisht-1) 18 kilometers to the south.
When I spoke with CEO McNamara he was clearly trying to keep a lid on his enthusiasm, but he did say that the Molisht-1 well target could actually prove to be the same structure as the Shpirag-2 well.
That would mean this discovery is actually an oil field that is at least 18 kilometers long.
If that is the case, it could easily mean that this field is 500 million to 800 million barrels in size.
That is the potential. The challenge with this play is that the wells are very complicated and very expensive.
Which is another reason why having Shell as a partner is a big plus for Petromanas. Shell has been drilling exactly these types of wells for 15 years across the Adriatic in Italy.
Experience counts, but even after 15 years, these wells aren't easy for even Shell to drill.
The complication lies in the fact that the companies are drilling through a "flysch shale" rock en route to the carbonate reservoir. It is flaky stuff that is not very stable.
On the Shpirag-2 well the rock caved in on the drill string three times.
Petromanas CEO McNamara described the flysch shale rock as being "coal like" with a tendency to "sluff" in on the well bore.
Every well sounds like a challenge.
On the Shpirag-2 well those challenges compromised the actual flow rates. That well ended up being only 4.5 inches in diameter instead of the 6 inches that the companies had hoped to use.
As I said, we know there is oil in this tank. We just need another well or two to understand how much oil is there and how profitable it will be to produce.
Shell's interest in this Albanian property is what put Petromanas on my short list.
Some back of the envelope math is what keeps the company close to the top of that list
The size of the prize here is huge. We are talking about 500 to 800 million barrels.
And these aren't resource-play barrels that require hundreds of wells that decline very quickly. This is a conventional play-prolific wells with lower decline curves.
Little Petromanas could have a 25% interest of a 500 to 800 million barrel field. That would be 125 to 200 million barrels net to them. Based on the analogous fields across the Adriatic in Italy, barrels in this type of field have NPVs (net present values) of $10 to $12 per barrel.
Now the simple math:
120 million barrels worth $10 each adds up to … $1.2 billion.
Petromanas has a market capitalization of $90 million and an enterprise value of $60 million (market cap less cash on hand).
Now, Petromanas has had to issue a lot of stock for that money-there is now 694 million shares out basic and 890 million fully diluted. That's 100 million warrants at 45 cents due February 2015, 50 million performance shares depending on how much oil is discovered, and 46 million options at an average 27 cents.
So at some point, management will almost certainly do a reverse split. But with a good well, that will mean the stock trades higher, not lower.
And if this Albania play is the real deal Petromanas isn't going to be a double or triple. Petromanas has the potential to be a multi-multi-multi-bagger. 1.2 billion divided by 60 million = 20x.
That's the potential. It's exciting and why I'm interested, but it is very important to note that this Albanian play has not been "de-risked". Petromanas CEO McNamara was careful to stress that several times when I spoke to him.
We know there is oil, the Shpirag-2 discovery confirmed that. And we know the tank appears to be very large.
What is needed next are a couple of additional wells to provide further detail on the find and a better indication of commerciality.
There are two big events for Petromanas in 2014.
The first will be the results of a new 51-101 resource assessment that Petromanas will get from a third party. TSX listed stocks must get independent resource appraisers. Since the last resource assessment was done Petromanas has obtained twice as much seismic data on the play and drilled a well.
Petromanas believes one interpretation indicates that the structures could be a lot bigger than they appeared the first time around. Now we need to wait and see if the resource appraiser confirms this, and just how big they think it is.
I think there is a very good chance that the third party reserve engineers come back with a big increase to their original resource assessment.
I would expect those resource assessment numbers to show up in the second quarter.
The second big event is the Molisht-1 well. Results from that well are expected in the third quarter of this year. It is possible this well will confirm that it has been drilled into the same structure as Shpirag-2 which is 18 kilometres away.
That would be a day that Petromanas shareholders would welcome.
PS-It's interesting that the Point and Figure chart for PMI is now calling for a $2.19 share price-this is fromwww.stockcharts.com
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