PetroNova focuses its participation in its non-operated Llanos Blocks

V.PNA
PetroNova focuses its participation in its non-operated Llanos Blocks

TORONTO, July 4, 2013 /CNW/ - PetroNova Inc. ("PetroNova" or the "Company") (TSX-V: PNA), a company engaged in the exploration and development of oil and natural gas resources in Colombia, announced today that upon evaluation of the expenditures required to conduct additional exploration work on the CPO-06 Block, the Company has entered into an agreement with Tecpetrol, the current operator of the block, to relinquish its 20 per cent non-operating interest in the CPO-06 Block to Tecpetrol. The relinquishment of the CPO-06 Block by PetroNova to Tecpetrol is subject to the approval of the Agencia Nacional de Hidrocarburos (the "ANH"), the national hydrocarbons regulator in Colombia.

"PetroNova has determined that extensive additional exploration work, including further drilling and 2D and 3D seismic surveys, is required to further evaluate the exploratory opportunities in the CPO-06 Block," said Antonio Vincentelli, President and CEO of PetroNova. "As such, we have made a strategic decision to relinquish our interest in the CPO-06 Block and turn our short-term focus to developing the CPO-07 and CPO-13 discoveries, which have generated encouraging results, while pursuing the high impact-targets in our PUT-2 and Tinigua Blocks."

PetroNova announced hydrocarbon discoveries at the Atarraya-1 well on the CPO-07 Block and at the Pendare-1 well on the CPO-13 Block on May 9, 2012 and July 25, 2012, respectively, and drilled the successful Atarraya-4 and Pendare-2 appraisal wells at each discovery. During the remainder of 2013, PetroNova plans to continue its seismic campaign on the CPO-07 Block and drill its first high-impact wells on the PUT-2 and Tinigua Blocks.

About PetroNova:

The Company, through its subsidiaries, is engaged in the exploration for, and the acquisition and development of, oil and natural gas resources in South America, specifically in Colombia. The Company's assets currently include the Company's interests in the PUT-2 and Tinigua Blocks located in the Caguan-Putumayo Basin in Colombia, both of which are operated by the Company, and the non-operated Llanos Blocks located in the Llanos Basin in Colombia. The common shares of the Company trade on the TSX Venture Exchange under the stock symbol "PNA".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Respecting Forward-Looking Statements and Information:

Certain statements contained in this press release constitute forward-looking information and statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. These forward-looking statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "intend", "plan", "continue", "estimate", "budget", "targeting", "project", "expect", "may", "will", "might", "should", "could", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements. Such statements represent the Company's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements involve 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 statements. Management believes the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon.

In particular, this press release contains forward-looking statements pertaining to: the Company's future exploration and development activities and the timing thereof; the Company's business strategy; and the approval of the ANH of the relinquishment of the CPO-06 Block by PetroNova. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things: the receipt, in a timely manner, of the approval of the ANH of the relinquishment of the CPO-06 Block by PetroNova; general economic, market and business conditions in Colombia and globally; future crude oil and natural gas prices; the continued availability of capital, undeveloped lands and skilled personnel; the ability to obtain equipment in a timely manner to carry out exploration and development activities; the regulatory framework governing royalties, taxes and environmental matters in Colombia and any other jurisdictions in which the Company may conduct its business in the future; the ability of the Company to obtain the necessary approvals, permits and licences to conduct its operations; future capital and exploration expenditures to be made by the Company; future sources of funding for the Company's exploration program; the geography of the areas in which the Company is exploring; and adequate weather and environmental conditions.

Actual results could differ materially from those anticipated in these forward-looking statements as a result of certain risk factors, including, but not limited to: the risk that the ANH may not approve the relinquishment of the CPO-06 Block by PetroNova; general economic, market and business conditions; risks related to the exploration, development and production of oil and natural gas; risks inherent in the Company's international operations, including security and legal risks in Colombia; risks related to the timing of completion of the Company's projects; competition for, among other things, capital, the acquisition of resources and skilled personnel; actions by governmental authorities, including changes in government regulation and taxation; the failure of the Company to obtain the necessary approvals, permits and licences to conduct its operations; environmental risks and hazards; the availability of capital on acceptable terms; the failure of the Company or the holder of certain licenses or leases to meet specific requirements of such licenses or leases; adverse claims made in respect of the Company's properties or assets; failure to engage or retain key personnel; geological, technical, drilling and processing problems, including the availability of equipment and access to properties; failure by counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; and the other factors discussed under the heading "Risk Factors" in the Company's annual information form for the year ended December 31, 2012 and the Company's other continuous disclosure documents filed from time to time with applicable securities regulatory authorities in Canada and which may be accessed on PetroNova's SEDAR profile at www.sedar.com.

Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements included in this press release are expressly qualified by this cautionary statement and are made as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

SOURCE: PetroNova Inc.

Antonio Vincentelli
President & Chief Executive Officer  
954 317 3990
antonio.vincentelli@petronova.com

Stelvio Di Cecco
Chief Financial Officer
954 317 3990
stelvio.dicecco@petronova.com

Abby Garfunkel
Investor Relations 
403-218-2887
agarfunkel@tmxequicom.com

Copyright CNW Group 2013

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