Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), a Canadian oil and gas company operating in Colombia, is pleased to announce the financial and operating results for the three and six months ended June 30, 2015, and to provide an operational update on the Company's activities in Colombia.

Copies of the Company's Management Discussion and Analysis ('MD&A') and Interim Financial Statements have been filed with the Canadian Securities Regulatory authorities and can be viewed or downloaded at the Company's website at www.petroamericaoilcorp.com or at www.sedar.com. The financial results for all periods presented are in United States dollars unless otherwise indicated.

Ralph Gillcrist, President and CEO of Petroamerica commented,

"The second quarter results reflect the Company's response to the low oil price environment that has prevailed since late last year, where the emphasis was on cash preservation and balance sheet strength. Inevitably, this deferred investment strategy has resulted in lower than expected production levels. In this low price environment, the Company is focused on low cost operations that will enhance production. This work has already commenced at the Las Maracas field, with a work over campaign targeting low watercut production where results have exceeded expectations. At the Cohembi field, the Company has identified a number of low risk workovers and development drilling locations that, subject to partner approval and oil pricing, it will consider implementing. On the exploration and appraisal front, the Company has a number of exciting high impact drilling activities in the pipeline, including a low-side fault prospect expected to spud in the fourth quarter on the LLA-10 Block, N Sand appraisal drilling on the PUT-7 Block where the environmental impact study has been submitted and drilling is anticipated late in the first quarter of 2016, and the high impact Tinigua prospect expected to spud in the first half of 2016. Petroamerica is largely carried on the LLA-10 and Tinigua wells. Additionally, the integration of PetroNova is progressing smoothly with this acquisition expected to add significant near to mid-term upside to the Company's portfolio."

Financial and Operating Highlights:

  • Announced agreement to acquire the shares of PetroNova Inc. ('PetroNova') This acquisition was completed on July 29, 2015, adding four blocks (two operated) to the Company's portfolio, and production of approximately 350 barrels of oil equivalent per day ('boepd') before royalty;
  • Tightened up the share structure with a ten for one share consolidation shortly after the acquisition of PetroNova;
  • Generated over $18 million in revenue (before royalty) in a challenging oil price environment, realizing a sales price of over $54 per barrel (Brent reference price: $63.50) and an operating net back of almost $21 per barrel of oil equivalent ('boe');
  • Recognized funds flow from operations in the quarter of $3.0 million ($0.03 per share);
  • Obtained extensions into 2016 on the drilling commitments on the El Porton, LLA-19 and PUT-7 blocks.

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