Petrominerales Reports Third Quarter Financial Results

Petrominerales Reports Third Quarter Financial Results Highlighted By
Funds Flow From Operations of $151.9 Million 
CALGARY, ALBERTA -- (Marketwire) -- 11/05/12 -- Petrominerales
(TSX:PMG)(BVC:PMGC) announces our 2012 third quarter financial
results highlighted by funds flow from operations of US$151.9 million
or US$1.69 per share on sales volumes of produced oil averaging
26,946 barrels per day. During the quarter, our operating netback
averaged US$62.89 per barrel. We further reduced our August 2013
convertible bond obligation to US$201.7 million through the
repurchase and cancellation of US$69.4 million of bonds during the
quarter. 
Our financial position remains very strong. We generated $37.3
million of positive free cash flow in the third quarter. In addition
to generating free cash flow, we have $33.8 million of cash on hand
and a completely undrawn credit facility. This financial strength
provides us the flexibility to buy back bonds at a discount, and
common shares at extremely compelling prices. Our 2012 per share
results are positively impacted by our share repurchases in 2012. To
date we have repurchased and cancelled 15 percent of our outstanding
common shares (14.9 million shares) of which 2.3 million shares were
repurchased in the third quarter at an average price of CDN$8.86. We
plan to execute a capital program in 2013 that is more balanced
between development and exploration drilling. Our immediate focus is
on adding production and reserves while expanding our prospect
inventory, and executing high-impact exploration drilling programs.  
We are expecting near-term production additions from the following
activities: 


 
--  Placing our Maya-1 well on production in mid-November; 
--  Drilling a side-track to our Macapay well targeting additional oil pay
    and adding additional production by mid-November; 
--  Drilling a high-impact prospect on our Guatiquia Block, Mapanare-1, that
    is targeting up to 15 million barrels of undiscovered petroleum
    initially-in-place ("UPIIP") by December 31st; 
--  Drilling our first horizontal development well on our Casimena Block,
    Mantis-HZ1, and placing on production in mid-November; and 
--  Drilling a side-track to our Gaita-1 exploration well to confirm the
    southern extension of our Yena
c oil field potentially adding production
    and reserves, while expanding on our development drilling inventory by
    December 31. 

 
FINANCIAL & OPERATING HIGHLIGHTS 
The following table provides a summary of Petrominerales' financial
and operating results for the third quarter ended September 30, 2012
and 2011. Consolidated financial statements with Management's
Discussion and Analysis ("MD&A") are now available on the Company's
website at www.petrominerales.com and will also be available on the
SEDAR website at www.sedar.com.  


 
Financial Highlights                                                        
($US millions, except where noted)                                          
                                                                            
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                                  Three months ended      Nine months ended 
                                       September 30,          September 30, 
                                                   %                      % 
                                  2012   2011 change    2012    2011 change 
----------------------------------------------------------------------------
Oil sales                        251.4  363.0    (31)  874.2 1,090.7    (20)
Funds flow from operations(1)    151.9  196.4    (23)  525.4   572.9     (8)
  Per share        - basic ($)    1.69   1.93    (12)   5.49    5.56     (1)
                   - diluted ($)  1.68   1.88    (11)   5.41    4.68     16 
Adjusted net income(1)            36.9   58.8    (37)  155.5   248.5    (37)
  Per share        - basic ($)    0.41   0.58    (29)   1.63    2.41    (32)
                   - diluted ($)  0.41   0.55    (25)   1.48    2.22    (33)
Dividends declared                11.2   12.2     (8)   34.7    39.3    (12)
Expenditures on PP&E and E&E(2)  114.6  210.4    (46)  483.6   534.7    (10)
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                                    September   June 30,  December September
As at,                               30, 2012       2012  31, 2011  30, 2011
----------------------------------------------------------------------------
Cash                                     33.8      160.6     295.4     275.4
Net working capital surplus                                                 
 (deficit)(1)                           (26.5)      24.9      73.8     134.0
2016 convertible debentures                                                 
 puttable August 2013 (3)               201.7      271.1     550.0     550.0
2017 convertible debentures             400.0      400.0         -         -
Total assets                          2,199.1    2,244.4   2,226.5   2,111.9
Common shares (000s)                   88,020     89,778    99,375   100,650
Common shares and in-the-money                                              
 dilutives (000s)(4)                   90,476     92,531   103,223   105,051
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Operating Highlights                                                        
                                                                            
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                                   Three months ended     Nine months ended 
                                        September 30,         September 30, 
                                                    %                     % 
                                   2012   2011 change    2012   2011 change 
----------------------------------------------------------------------------
Production (bopd)                                                           
  Deep Llanos                    18,101 26,576    (32) 20,868 28,879    (28)
  Central Llanos                  3,687  4,612    (20)  4,337  4,528     (4)
  Neiva                           3,187  4,017    (21)  3,453  4,025    (14)
  Orito                           1,359  1,919    (29)  1,802  1,966     (8)
  Heavy oil                           -      -      -      23      -      - 
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Total production                 26,334 37,124    (29) 30,483 39,398    (23)
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Sales volumes                    26,946 39,923    (33) 30,619 39,606    (23)
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Operating netback ($/bbl)(1)                                                
  WTI benchmark price             92.22  89.54      3   96.74  95.47      1 
  Brent benchmark price          109.61 113.38
     (3) 112.18 111.88      - 
  Discount to Brent                8.20  14.54    (44)   7.98  11.01    (28)
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  Sales price                    101.41  98.84      3  104.20 100.87      3 
  Transportation expenses          6.09  11.08    (45)   6.82  10.42    (35)
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  Realized crude oil price        95.32  87.76      9   97.38  90.45      8 
  Royalties                       14.04  10.73     31   12.03  11.67      3 
  Production expenses             18.39  15.92     16   15.94  12.15     31 
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Operating netback (1)             62.89  61.11      3   69.42  66.63      4 
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(1)   Non-IFRS measure. See "Non-IFRS Measures" section.                    
(2)   PP&E consists of property, plant and equipment assets and E&E consists
      of exploration and evaluation assets from the consolidated statement  
      of cash flow.                                                         
(3)   Consists of the principal portion of the convertible debentures due in
      2016 and 2017. The 2016 convertible debenture holders have a one-time 
      put option right of prepayment of the debentures on August 25, 2013 of
      the sum of common shares, deferred common shares, incentive shares,   
      and potential shares issuable on conversion of in-the-money stock     
      options and convertible debentures outstanding as at the period-end   
      date.                                                                 
(4)   Consists of the sum of common shares, deferred common shares,         
      incentive shares, and potential shares issuable on conversion of in-  
      the-money stock options and convertible debentures outstanding as at  
      the period-end.                                                       

 
HIGHLIGHTS AND SIGNIFICANT TRANSACTIONS DURING THE THIRD QUARTER 
(Comparisons are third quarter 2012 compared to the third quarter of
2011 unless otherwise noted) 


 
--  Funds flow from operations was US$151.9 million or US$1.69 per basic
    share, representing 23 and 12 percent decreases over 2011 primarily due
    to lower sales volumes. 
--  We generated positive free cash flow of US$37.3 million in the quarter
    after deducting capital expenditures of US$114.6 million from funds flow
    from operations. 
--  Our 2012 per share results are positively impacted by our share
    repurchases in 2012. To date we have repurchased and cancelled 15
    percent of our outstanding common shares (14.9 million shares), of which
    2.3 million shares were repurchased in the third quarter at an average
    price of CDN$8.86.  
--  We made one new oil discovery in Colombia on the Corcel Block, Mambo. 
--  In October, we made our first oil discovery in Peru at Sheshea. 
--  Our operating netbacks averaged US$62.89 per barrel in the third
    quarter, a three percent increase over the third quarter of 2011,
    primarily due to transportation savings achieved from our ownership in
    the OCENSA pipeline, offset by higher royalties due to our Yatay field
    exceeding the high-price participation threshold. 
--  During the quarter, we reduced our August 2013 convertible debt
    obligation to US$201.7 million by repurchasing an additional US$69.4
    million of convertible debentures. 

 
OPERATIONAL REVIEW 


 
Production (bopd)                                                           
----------------------------------------------------------------------------
                                                Third     Second            
                                   October    Quarter    Quarter   Q2 to Q3 
                                      2012       2012       2012     Change 
----------------------------------------------------------------------------
Deep Llanos                         17,266     18,101     20,936     (2,835)
Central Llanos                       4,064      3,687      4,914     (1,227)
Neiva                                2,919      3,187      3,428       (241)
Orito                                1,691      1,359      1,827       (468)
Heavy oil                                -          -          8         (8)
----------------------------------------------------------------------------
Total production                    25,940     26,334     31,113     (4,779)
----------------------------------------------------------------------------

 
Third quarter production averaged 26,334 barrels of oil per day
("bopd"), 4,779 bopd or 15 percent lower than the second quarter of
2012. Our Deep Llanos production decreased 2,835 bopd or 14 percent
mainly due to wells being temporarily offline (2,055 bopd), including
our Yatay-1 well that was affected for eight days, and natural
declines net of production additions from our Mambo and Guala
discoveries. Our Central Llanos production decreased 1,227 bopd or 25
percent primarily due to the shut-in of our Yenac and Mantis oil
fields for nine days in August (784 bopd) as a result of community
blockades and the remainder from natural declines. We did not drill
any wells at Orito or Neiva in the third quarter, as a result, Neiva
production decreased seven percent and Orito production decreased 26
percent. Orito was also affected by certain wells being offline in
the quarter due to facilities disruptions (170 bopd) and awaiting
workovers (310 bopd). The operator has a workover rig in the field
performing well services, and the lost production in the third
quarter was brought back on-line in October. We plan to recommence
our Neiva drilling programs in the first half of 2013 and our Orito
drilling program early in 2013.  
Production averaged 25,940 bopd during October, two percent or 394
bopd lower than the third quarter average primarily due to natural
declines offset by wells that were offline in the third quarter being
brought back on production in October.  
Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia 
During the quarter we drilled two wells, Mambo-1 and Guarana-1, and
in October we drilled a third well, Maya-1. Mambo-1 was drilled to a
total measured depth of 11,875 feet on August 23rd. Well logs
indicate 13 feet of potential net oil pay in the Lower Sand 1
formation. After completing the well in the Lower Sand 1, we
installed an electric submersible pump ("ESP") and placed the well on
production on September 12th at an oil rate of 839 bopd of 23 degree
API oil, at a 73 percent water-cut. The well averaged 765 bopd during
the remainder of the month. Following Mambo, we commenced drilling a
side-track to our Macapay well, targeting up to 15 feet of additional
oil pay. The original Macapay well has produced 660,000 barrels of 29
degree API oil from 25 feet of net oil pay in the Lower Sand 1
formation. We expect to have production results from this well in
mid-November. Following Macapay, we plan to release the drilling rig
and execute our exploration program with one drilling rig starting in
2013. 
We drilled our Guarana-1 well to a total measured depth of 13,902
feet on August 2nd. We tested two intervals in the well, the first
tested water and the second test recovere
d trace amounts of 11 degree
API oil. Following Guarana, we drilled our Maya-1 well to a total
measured depth of 13,565 feet on October 14th. Well logs indicate 32
feet of potential net oil pay in the Guadalupe and Lower Sand
formations. We have initiated a testing program and expect to have
results in mid-November. 
Following Maya, we began drilling operations on our Mapanare-1
prospect on the Guatiquia Block on November 5th. This prospect is
immediately southwest of our Yatay and Candelilla discoveries
targeting up to 15 million barrels of UPIIP. With success, there
could be follow-up development locations and similar prospectivity on
the southern part of the Corcel Block. 
Foothills Blocks (Block 25, 31, 59 and 15), Deep Llanos Basin,
Colombia 
In October, we completed our test program of the initial
high-pressure, high-temperature gas zone on our Bromelia-1 well. The
interval produced water and non-commercial amounts of gas, and we
believe the zone we encountered while drilling contained gas
dissolved in water. 
We are currently conducting field surveys and expect to begin
acquisition of a 256 square kilometre 3D seismic acquisition program
on the northeastern portion of Block 25. Based on our current
analysis, we have identified a number of prospects, including some
Corcel-type prospects on the northeastern portion of the block that
our upcoming 3D seismic program will delineate. We expect to
recommence drilling prospects on this block in the second half of
2013. 
We are currently evaluating and interpreting two large 3D seismic
programs acquired earlier in the year from this area. On Block 31, we
acquired 239 square kilometres of 3D over a large overthrust trend
that was previously identified on existing 2D seismic data. On Block
59, we completed the acquisition of a large, 379 square kilometre 3D
seismic program. We are encouraged by the prospectivity observed and
expect to start drilling prospects on this acreage starting in the
second half of 2013. 
Central Llanos Basin (Casimena, Castor, Casanare Este, Mapache
Blocks), Colombia 
In the third quarter, we drilled a water disposal well on the
Casimena Block, Mantis-SWD. In October, we began drilling our first
Casimena horizontal well in our Yenac/Mantis area, Mantis-HZ1. We
expect to have this well on production in mid-November. The
horizontal wells in this field are targeting the Lower Mirador
formation that has been encountered in all of our Yenac and Mantis
vertical wells; however, only one well has been placed on production
in that formation. This well has produced over 288,000 barrels of 14
degree API oil since it was placed on production in March 2011. 
Following Mantis-HZ1, we plan to drill a side-track to our previously
drilled exploration well, Gaita-1. Gaita-1 was drilled outside of our
existing seismic control, but on trend with the Yenac Pool. Our
interpretation of recently acquired 2D seismic demonstrates that
Gaita was drilled on the down-thrown side of the fault. We are
drilling this side-track to target the structurally high-side of the
fault, where we expect to encounter the probable extension of the
Yenac Pool. If successful, the Gaita side-track could add two
additional development locations, a Yenac-7 location targeting the
Upper Mirador reservoir and a second Yenac horizontal well, HZ2,
targeting the Lower Mirador formation. 
We have also identified additional locations that could extend the
size of the field. The first well, Mantis Norte, will be drilled in
the first quarter of 2013. If successful, this well could add an
additional four development locations to the field. 
Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro
Este), Colombia 
In the third quarter, we drilled two wells Mielero-1 and Dara-1, and
in October a third well, Pichilingo-1. The Mielero and Pichilingo
wells were drilled to target prospects identified from 2D seismic in
the central part of the Rio Ariari Block. We have identified on
average 10 feet of potential net oil pay in each well. 
We are planning to drill two additional exploration prospects with
the objective of testing new play concepts and defining new,
high-potential resource on the block. In addition, we are initiating
an 80 kilometre 2D seismic program on the eastern portion of the
Block. Once completed, we plan to drill up to an additional four
stratigraphic wells in this region. We are also mobilizing a rig to
our Tatama horizontal well-site to conduct a long-term production
test. We expect this test to begin early in 2013. 
Orito (Putumayo Basin) and Neiva (Upper Magdalena Basin), Colombia 
We did not drill any wells on our Orito or Neiva fields during the
third quarter, as the field operator Ecopetrol is in the process of
updating environmental permits on both blocks. We expect to
recommence our Orito development drilling program at the beginning of
2013, targeting down-hole locations from existing well pads. At
Neiva, we expect to recommence development drilling from existing
locations in the first half of 2013. 
Block 126, Peru 
During the quarter we drilled our second exploration well,
Sheshea-1X, on Block 126. Sheshea-1X commenced drilling on July 19,
2012 and was drilled to a total measured depth of 8,925 feet on
September 9, 2012. 
We conducted four tests in three different formations. In the Chonta
formation, we produced an average of 1,430 bopd, with no water
recovered. In the Agua Caliente formation, we produced 80 bopd with a
97 percent water cut. The two tests conducted in the Copacabana
formation recovered water. 
In the Chonta formation, we tested a ten foot perforated interval
with an ESP for a total of 37.5 hours through temporary well-test
equipment. A total of 2,235 barrels of 53 API gravity oil was
produced at an average rate of 1,430 bopd, with no water recovered
during the test. Solution gas was present, but in quantities too
small to measure. Drawdowns at the end of the test were 50 percent.
Additional drilling, testing and 3D seismic will be required to help
evaluate this encouraging discovery. 
The Chonta sand is currently interpreted as a shoreface sand with
good lateral extent and continuity that was deposited on a
pre-existing high. Internally calculated potential resource volumes
suggest a potential of 14 million barrels of discovered petroleum
initially-in-place ("DPIIP"), based on minimal closure, to 140
million barrels of DPIIP based on maximum closure to interpreted
spill point. 
Prior to the Chonta test, we completed two tests in the Copacabana
formation that recovered water. A third test was conducted over an
eight-foot interval in the upper Agua Caliente formation. The test
was conducted with an ESP through temporary well test equipment. Only
formation water was recovered in the first 20 hours. After that
point, traces of oil were observed, growing gradually to a three
percent cut of 42 API oil by the end of the 46.8 hour flow period.
The total fluid rate was 2,703 barrels per day. Drawdowns at the end
of the test were four percent. 
The Agua Caliente results are encouraging. We believe we tested a
transition zone in a down-dip position with a potential accumulation
up-dip of the well. Based on our interpretation of 2D seismic data,
we could gain up to 25 feet of additional elevation and potential net
oil pay. Internal calculations suggest that up to 25 million barrels
DPIIP is possible for the Aqua Caliente formation. Again, additional
drilling, testing and 3D seismic will be required to evaluate this
discovery. 
Our current plan is to incorporate these two encouraging test results
into our geological and seismic mapping. We are planning a 3D seismic
survey over the Sheshea structure to assist in the evaluation of the
test results and to select possible appraisal drilling locations.
Regulatory approval of the 3D seismic could take up to 18 months, and
concurrently, we will initiate the regulatory process for possible
commercialization. 
Blocks 114 and 131, Peru 
Petrominerales holds a 30 percent working interest in 
blocks 114 and
131. On Block 131, the operator has identified two drillable
prospects, one of which is estimated to commence drilling during the
second quarter of 2013. On Block 114, the acquisition of 260
kilometres of 2D seismic resumed in June 2012 and is now complete.
Subject to technical and economic evaluations and regulatory
environmental approval, the operator is planning to drill one
exploration well no later than the second quarter of 2014. 
Block 161 and 141, Peru 
Block 161, situated in east central Peru, is 1.2 million acres in
size. Petrominerales holds a 100 percent working interest in the
block. Terms of reference to complete the Environmental Impact
Assessment's ("EIA") Public Consultation Plan are in the final stages
of the Peruvian Ministry of Energy and Mines approval. Upon
completion and approval of the EIA, the planned 353 kilometre 2D
seismic program will commence, likely in the second half of 2013.  
Block 141, situated in southern Peru, is 1.3 million acres in size,
of which Petrominerales has a 100 percent working interest. In July
2012, we received approval to commence our Public Consultation Plan,
a key step in the completion of the EIA. Our commitment to complete a
300 kilometre 2D seismic program is currently scheduled to begin in
early 2014, pending the completion and approval of the EIA. 
OUTLOOK 
Our financial position remains very strong. We generated $37.3
million of positive free cash flow in the third quarter. In addition
to generating free cash flow, we have $33.8 million of cash on hand
plus a completely undrawn credit facility. This financial strength
provides us the flexibility to buy back bonds at a discount, and
common shares at extremely compelling prices. We plan to execute a
capital program in 2013 that is more balanced between development and
exploration drilling. Our immediate focus is on adding production and
reserves while expanding our prospect inventory, and executing
high-impact exploration drilling programs. 
We are expecting near-term production additions from the following
activities: 


 
--  Placing our Maya-1 well on production by mid-November; 
--  Drilling a side-track to our Macapay well targeting additional oil pay
    and adding additional production by mid-November; 
--  Drilling a high-impact prospect on our Guatiquia Block, Mapanare-1, that
    is targeting up to 15 million barrels of UPIIP by December 31st; 
--  Drilling our first horizontal development well on our Casimena Block,
    Mantis-HZ1, and placing on production by mid-November; and 
--  Drilling a side-track to our Gaita-1 exploration well to confirm the
    southern extension of our Yenac oil field and potentially adding
    production and reserves while expanding on our development drilling
    inventory by December 31. 

 
To expand our prospect inventory, we have acquired over 600 square
kilometres of new 3D seismic in 2012 that is currently being
interpreted. In addition, we will soon be in the field acquiring a
256 square kilometre 3D seismic program on Block 25, providing more
data over our Canatua prospect and additional leads. We expect these
3D seismic acquisitions to add significantly to our prospect
inventory and to provide new drilling opportunities for our 2013
program. 
We look forward to updating our shareholders on our progress
throughout the remainder of 2012 and into 2013. 
IN MEMORIAM 
We are sad to note the passing of one of the original directors of
Petrominerales, Jerald Lindsay Oaks, on September 28, 2012. Jerald
was also one of the original founders and directors of Petrobank
Energy and Resources Ltd., and was a key player in the strategic
growth of Petrominerales. We will miss his leadership, encouraging
words, and his wise, reasoned counsel. 
CONFERENCE CALL AND WEBCAST 
Management of Petrominerales will be holding a conference call and
webcast for investors, financial analysts, media and any interested
persons on Monday, November 5, 2012 at 8:00 a.m. (Mountain Time)
(10:00 a.m. Eastern Time) to discuss our 2012 third quarter financial
and operating results. 


 
The investor conference call details are as follows:                        
Live call dial-in number(s): 416-695-6617 / 800-446-4472                    
Live audio webcast link:                                                    
http://events.digitalmedia.telus.com/petrominerales/110512/index.php        
Replay dial-in numbers: 905-694-9451 / 800-408-3053                         
Replay Pass code: 3686459                                                   

 
Petrominerales Ltd. is an international oil and gas company operating
in Latin America since 2002. Today, Petrominerales is one of the most
active exploration companies and one of the largest oil producers in
Colombia. Our high quality land base and multi-year inventory of
exploration opportunities provides long-term growth potential for
years to come. 
Non-IFRS Measures. This press release contains financial terms that
are not considered measures under International Financial Reporting
Standards ("IFRS"), such as funds flow from operations, adjusted net
income, funds flow per share, adjusted net income per share, working
capital and operating netback. These measures are commonly utilized
in the oil and gas industry and are considered informative for
management and shareholders. We evaluate our performance and that of
our business segments based on funds flow from operations and
adjusted net income. Funds flow from operations is a non-IFRS term
that represents cash generated from operating activities before
changes in non-cash working capital. Adjusted net income is
determined by adding back any losses or deducting any gains on the
derivative liabilities and effects of the buyback of the convertible
debentures (accelerated accretion and gain on settlement). Management
considers funds flow from operations, funds flow per share, adjusted
net income and adjusted net income per share important as they help
evaluate performance and demonstrate the Company's ability to
generate sufficient cash to fund future growth opportunities and
repay debt. Working capital includes current assets less current
liabilities and is used to evaluate the Company's short-term
financial leverage. Net (debt) surplus includes current assets less
current liabilities and the principal amount of out-of-the-money
convertible debentures (i.e. when they are out of the money and not
repayable in common shares at maturity) and is used to evaluate the
Company's financial leverage. Operating netback is determined by
dividing oil revenue less royalties, transportation and production
expenses by sales volume of produced oil. Management considers
operating netback important as it is a measure of profitability per
barrel sold and reflects the quality of production. Funds flow from
operations, funds flow per share, adjusted net income, adjusted net
income per share, working capital, net (debt) surplus and operating
netbacks may not be comparable to those reported by other companies
nor should they be viewed as an alternative to cash flow from
operations, net income or other measures of financial performance
calculated in accordance with IFRS. 
Forward-Looking Statements and Cautionary Language. Certain
information provided in this press release constitutes
forward-looking statements. Specifically, this press release contains
forward-looking statements relating to the Company's future
exploration and development activities and the timing for bringing
wells on production. The forward-looking statements are based on
certain key expectations and assumptions, including expectations and
assumptions concerning the availability of capital, the success of
future drilling and development activities, the performance of
existing wells, the testing and performance of new wells, prevailing
commodity prices and economic conditions, the availability of labour
and services, the ability to transport and market our production,
timing of completion of infrastructure and transp
ortation projects,
weather and access to drilling locations. The reader is cautioned
that assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove
to be incorrect. Actual results achieved during the forecast period
will vary from the information provided herein as a result of
numerous known and unknown risks and uncertainties and other factors.
You can find a discussion of those risks and uncertainties in our
Canadian securities filings. Such factors include, but are not
limited to: general economic, market and business conditions;
fluctuations in oil prices; the test results and performance of
exploration and development drilling, recompletions and related
activities; timing and rig availability; availability of
transportation and offloading capacity, outcome of exploration
contract negotiations; fluctuation in foreign currency exchange
rates; the uncertainty of reserve estimates; changes in environmental
and other regulations; risks associated with oil and gas operations;
and other factors, many of which are beyond the control of the
Company. There is no representation by Petrominerales that actual
results achieved during the forecast period will be the same in whole
or in part as those forecast; and there is no representation by
Petrominerales that the test results of any new exploration well or
development well is necessarily indicative of long-term performance
or ultimate recovery. Except as may be required by applicable
securities laws, Petrominerales assumes no obligation to publicly
update or revise any forward-looking statements made herein or
otherwise, whether as a result of new information, future events or
otherwise. 
Undiscovered Petroleum Initially-In-Place ("UPIIP"). UPIIP,
equivalent to undiscovered resources, are those quantities of
petroleum that are estimated, on a given date, to be contained in
accumulations yet to be discovered. The recoverable portion of UPIIP
is referred to as prospective resources, the remainder as
unrecoverable. Undiscovered resources carry discovery risk. There is
no certainty that any portion of these resources will be discovered.
If discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources. A recovery project
cannot be defined for this volume of UPIIP at this time. 
Discovered Petroleum Initially-In-Place ("DPIIP"). DPIIP, equivalent
to "discovered resources", is that quantity of oil that is estimated,
as of a given date, to be contained in known accumulations prior to
production. The recoverable portion of DPIIP includes production,
reserves, and contingent resources; the remainder is unrecoverable. A
recovery project cannot be defined for these volumes of DPIIP at this
time. There is no certainty that it will be commercially viable to
produce any portion of the resources.
Contacts:
Petrominerales Ltd.
Corey C. Ruttan
President and Chief Executive Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com 
Petrominerales Ltd.
Jack F. Scott
Chief Operating Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com 
Petrominerales Ltd.
Kelly D. Sledz
Chief Financial Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com
www.petrominerales.com
 
 
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