Platino Energy Corp.
TSX VENTURE : PZE

Platino Energy Corp.

December 05, 2014 09:00 ET

Platino Announces Closing of CEDCO Acquisition

CALGARY, ALBERTA--(Marketwired - Dec. 5, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Platino Energy Corp. (TSX VENTURE:PZE) ("Platino" or the "Company"), is pleased to announce that it has closed the previously announced acquisition of all the shares of Colombia Energy Development Company ("CEDCO") pursuant to a purchase agreement dated October 13, 2014. The aggregate purchase price paid by Platino on closing was approximately US$49 million in cash (the "Transaction").

Over the next few weeks Platino plans to start consolidating its existing operations with the newly acquired blocks at both field and office level, beginning execution of Platino´s plan for production cost optimization, finalizing plans and timing for identified production growth opportunities in the CEDCO portfolio, and beginning discussions with nearby operators on operational synergies. Platino anticipates providing an operational update as well as 2015 capital spending and production guidance prior to year-end.

The Company also announces that the Company's existing Coati, Put-8, and Andaquies exploration and production contracts have been formally amended by the Agencia Nacional de Hidrocarburos ("ANH") to reflect Platino as the formal holder, and where applicable, formal operator of said contracts.

In connection with the Transaction, the Company's subsidiary has entered into a new US$15 million secured credit facility with BANCO COLPATRIA MULTIBANCA COLPATRIA S.A. The Company drew approximately US$7.5 million on the new credit facility to fund a portion of the purchase price for the CEDCO shares. The balance of the purchase price was financed from the Company's cash on hand.

About Platino

Platino is a Calgary, Alberta headquartered resource company engaged in the exploration for, and the acquisition, development and production of hydrocarbons in Colombia.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements within the meaning of applicable Canadian securities laws (collectively, "forward looking information"). The use of any of the words "expect", "anticipate", "may", "will", "intends" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following: (i) Platino's plans to consolidate its existing operations with the newly acquired blocks and seek performance enhancements arising from the acquisition; (ii) Platino's plans to identify production growth opportunities within the newly acquired blocks; and (iii) Platino's expectations regarding the provision of an operational update and capital spending and production guidance for 2015.

Various material factors, expectations and assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information throughout this news release including, without limitation expectations and assumptions relating to: (i) future industry and economic conditions and areas for growth and development; (ii) the timing, manner and effectiveness of the integration of CEDCO's assets and operations into Platino's current business and operations; (iii) commodity prices, foreign currency exchange rates and interest rates; (iv) capital expenditure programs and other expenditures; (v) supply and demand for oil and natural gas; (vi) Platino's future operating and financial results; and (vii) treatment under governmental regulatory regimes and tax, environmental and other laws.

The forward-looking information included in this news release is not a guarantee of future performance and should not be unduly relied upon. Such information involves 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 information. The actual outcome and timing of Platino's plans to integrate the CEDCO business and seek operational improvements may differ from those currently anticipated by Platino. .

Additional information on the factors that could affect the operations or financial results of Platino are included in the Listing Application (Form 2B) of Platino filed with the TSXV, which has been filed with applicable securities regulatory authorities and may be accessed through the SEDAR website www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Platino undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The TSXV has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Platino Energy Corp. - Bogota
    Tomas Villamil
    President & Chief Executive Officer
    +57(1) 235-0007

    Platino Energy Corp. - Calgary
    Rafi Khouri
    Vice President, Business Development
    +1(403) 919-1380