Platino Energy Corp.
TSX VENTURE : PZE

Platino Energy Corp.

February 02, 2015 08:00 ET

Platino's 2015 Capital Budget Targeting Production Growth

CALGARY, ALBERTA--(Marketwired - Feb. 2, 2015) - Platino Energy Corp. (TSX VENTURE:PZE) ("Platino" or the "Company") is pleased to announce its 2015 full year production guidance and capital budget, as well as the appointment of Mr. Martin Eden to its Board of Directors.

2015 Guidance: 1,200 - 1,500 bopd

Platino's board of directors have approved a US$6 million capital budget for 2015, with a primary focus of delivering material production increases.

Key highlights of the Company's 2015 capital program are:

  • Estimated average 2015 annual production of 1,200 to 1,500 bopd, versus a 2014 exit rate of 908 bopd.
  • Low risk work-over program on several of the company's Llanos wells to commence this month targeting a combination of one or more of: accessing bypassed pay, isolating high water cut zones, installing upgraded artificial lift equipment.
  • Performing required operating facilities updates and expansions to allow for handling of the increased production volumes.
  • Licencing process requirements for the Company's Putumayo blocks.

Capital Program Funding

The Company anticipates funding the 2015 capital budget from funds from operations, and existing cash balances and debt facilities as required. Platino expects to have exited 2014 with US$8.9 million of cash on hand and US$7.5 million in un-drawn debt facilities.

The company currently has 200 bopd hedged for 2015 at US$71.30 per barrel (Dated Brent pricing basis).

Platino currently forecasts operation and transportation expenses of approximately US$31 per barrel for 2015, and general and administrative costs of approximately US$ 7 per barrel, with an ongoing focus on identifying and implementing various cost reduction opportunities.

New Director Appointment

Mr. Martin Eden has been appointed to the Platino Board of Directors, subject to approval of the TSX Venture Exchange ("TSXV"). Mr. Eden is a chartered accountant with over 30 years of experience in the petroleum industry in Canada and internationally, including as the Chief Financial Officer of Gran Tierra Energy Inc. from 2007 to 2012.

Tomas Villamil, President and CEO stated, "It is with great pleasure that we announce Martin's decision to join the Platino Board. His extensive expertise as an oil and gas executive, combined with his broad financial knowledge of the Colombian oil and gas industry, will be critical to the Company's growth plans."

Stock options update

Following on the acquisition of the Llanos assets in late 2014, which the Board of Directors of Platino views as a transformational transaction, the Company is proposing a re-alignment of the stock option plan with the Company's new asset base. This re-alignment would free up a portion of the currently issued stock options, allowing them to be used by the Board of Directors as required at a future date, by reducing the number of issued stock options from approximately 4 million currently to approximately 2.75 million. Platino believes that the ability to issue stock options in the future will be critical in attracting and retaining key personnel required to deliver the planned growth. The new options would be issued at a premium to the Company's share price at the time of grant. Platino anticipates providing a detailed information circular requesting shareholder approval for this proposed re-alignment in the near future, as per the applicable TSXV requirements.

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 "estimated", "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) estimated production for 2015; (ii) forecast operation and transportation expenses and G&A in 2015; (iii) aspects of the 2015 capital program; (iv) the Company's plans to amend its stock options; and (v) other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance.

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) productivity estimates from the Company's wells; (ii) future industry and economic conditions and areas for growth and development; (iii) commodity prices, foreign currency exchange rates and interest rates; (vi) capital expenditure programs and other expenditures; (v) supply and demand for oil and natural gas; (vii) Platino's future operating and financial results; and (ix) treatment under governmental regulatory regimes and tax, environmental and other laws. In particular, estimates of 2015 average production are based on assumptions that the Company's capital program will increase production as expected and that there will not be any unexpected increases in costs or operational issues in the year. Estimates of 2015 transportation expenses and G&A on a per barrel basis are based on assumptions that production will increase as anticipated and that that costs will be consistent with past periods and will not increase materially.

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 including, without limitation: (i) volatility in market prices for oil and natural gas; (ii) volatility in exchange rates for the U.S. dollar relative to other world currencies; (iii) liabilities and risks inherent in the oil and gas industry; (iv) competition for, among other things, capital, transportation capacity and skilled personnel; (v) changes in general economic, market and business conditions in Colombia and worldwide; (vi) actions by governmental or regulatory authorities (both domestic and foreign), including changes in tax laws and the risk of nationalization and expropriation of assets; (vii) the impact of adverse weather on the operations of Platino and its subsidiaries; and (viii) increases and overruns in operating costs. The outcome and timing of the proposed transaction may differ from that currently anticipated by Platino and regulatory approvals may not be obtained on the timelines anticipated or at all. Platino cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive.

Additional information on these and other 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 not 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) 262-6046
    www.platinoenergy.com