CALGARY, ALBERTA--(Marketwired - May 14, 2013) - Platino Energy Corp. ("Platino" or the "Company") (TSX VENTURE:PZE) is pleased to provide an update on its operations, including an increase in its working interest in two of its exploration properties. The Company also provides a financial update as at the period ended March 31, 2013 and confirms the filing of its financial statements and management's discussion and analysis ("MD&A") for the three months ended March 31, 2013.
Coati Block - 100% Working Interest(1)
Platino has agreed with its partner, Canacol Energy Ltd. ("Canacol"), to amend the terms of the existing farm-out agreement on the Company's Coati block, located in the Putumayo basin of Colombia. Under the previous agreement, Canacol would have earned a 40% working interest in return for paying 80% of the costs of one exploration well plus an additional amount for seismic. Under the revised agreement, the terms of the arrangement have been reduced by half, resulting in Platino retaining an 80% working interest in the block and Canacol's participation being reduced by half to 20% working interest in return for paying 40% of one exploration well plus an additional amount for seismic.
The Company continues to make good progress on civil works for the Coati-1 exploration well. Bridge construction is complete, construction of 16 km of roads is 55% complete and construction of the well site pad is 45% complete. Rig mobilization to the drill site has begun as of this week. Platino expects to spud the Coati-1 well in June 2013, as previously announced.
"We are pleased to have reached satisfactory agreement on revised farm-out terms with our partner," said Dr. Tomas Villamil, President and CEO of the Company. "Coati is the largest potential prospect in the Company's portfolio, a block we have been looking forward to drilling for several years, so we are happy to re-acquire an increased participation in the block." Dr. Villamil adds "the entire Platino team is focused on preparations for an anticipated June 2013 spud date for the Coati-1 exploration well." The well will target the Caballos formation at a total depth of approximately 10,500 feet. Results from the well are anticipated in Q3 following an extensive planned testing program.
|(1)||Working interest will be reduced to 80% upon Canacol earning-in in accordance with the farm-in agreement.|
Andaquies Block - 100% Working Interest
In connection with the amendment to the Coati block farm-out agreement between Canacol and Platino, Canacol has also agreed to transfer to Platino its 36% working interest in the Andaquies block, located in the Putumayo basin of Colombia. As a result of the transfer, Platino's working interest increases from 64% to 100%.
The Company plans to shoot a 3D seismic survey around the previously drilled Tardigrado-1 well drilled in 2012 by C&C Energia Ltd. and Canacol. Management believes the partners may have missed the original reservoir target as a result of drilling based only on 2D seismic data. Additionally, there are several other features on the block the Company plans to study. Platino intends to seek out a new partner for the block prior to carrying out any further exploration activity. All required ANH commitment spending has been completed on the block, allowing the Company until August 2016 to plan and execute a seismic survey and any potential future drills.
FIRST QUARTER FINANCIAL RESULTS
|SELECTED FINANCIAL INFORMATION|
|(US$000s, except shares and data per share)||Quarter Ended March 31, 2013|
|Net Loss per Share||($0.02||)|
|As at,||March 31, 2013||December 31, 2012|
|Working capital surplus||76,636||79,268|
|Weighted average shares outstanding - Basic and Diluted||68,064,033||67,942,164|
The Company's financial statements and MD&A will be available on the Company's website and at www.sedar.com.
About Platino Energy
Platino is a Calgary, Alberta headquartered resource company engaged in the exploration for, and the acquisition, development and production of hydrocarbons in Colombia.
Advisory Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "intends" and similar expressions is intended to identify forward-looking information concerning the Company's future operations and performance, including its drilling plans for the Coati-1 exploration well and exploration plans for the Company's Andaquies block.
The forward-looking information in this news release is based on certain key expectations and assumptions made by Platino, including assumptions as to: the submission, in a timely manner, of regulatory and third party applications; the receipt in a timely manner, of regulatory and third party approvals; the timing and progress of work relating to Platino's assets; Platino's geological and engineering estimates; future production levels; the regulatory framework with respect to royalties, taxes, environmental matters, resource recovery and securities matters in the jurisdiction in which Platino will conduct its business; the geography of the areas in which Platino will conduct exploration and development activities; the sufficiency of budgeted capital expenditures in carrying out planned activities; the accuracy of testing results and seismic data; and the accuracy of resource estimates and the general continuance of current or, where applicable, assumed operational, regulatory and industry condition. Although Platino believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Platino can give no assurance that it will prove to be correct.
The forward-looking information in this news release is subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied in the forward-looking information. Such risks, uncertainties and factors include, among others: the inability to secure necessary regulatory or other third party approvals; the early stage of development of Platino and its assets and the nature of the exploration and development activities on such assets; difficulties encountered during the exploration for, delineation, development and production of oil. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. Readers are cautioned that the foregoing list of factors 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 TSX-V, 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.