PetroLatina has announced that Ryder Scott Company, L.P. has recently completed an updated assessment of the reserves, future production and income attributable to the Company's four concessions in Colombia as at December 31, 2007.
Ryder Scott reported that as at December 31, 2007, Proved Reserves net to the Company in respect of its interests in Colombia totalled approximately 2.75 million boe (corresponding figure as at December 31, 2006: approximately 0.45 million boe), Proved plus Probable reserves net to the Company totalled approximately 5.06 million boe (as at December 31, 2006: 0.66 million boe) and Proved plus Probable plus Possible reserves net to the Company totalled approximately 7.34 million boe (as at December 31, 2006: approximately 2.5 million boe).
Based upon NYMEX crude oil futures prices as of April 10, 2008, the Net Present Value at a 10 per cent. discount of the Proved Reserves was $47.7 million. The NPV10 of the 2P reserves totalled $108.8 million and the NPV10 of the 3P reserves totalled $164.9 million.
The above mentioned NPV10 valuations do not take account of the exploration potential in respect of the Company's interests in Colombia and Guatemala which the Directors of PetroLatina believe could be substantial. The Company's residual 20 per cent. well interests in Guatemala, following the disposal of its Guatemala assets on July 31, 2007, may be evaluated separately once more drilling and production data becomes available from the operator.
In addition, Ryder Scott's assessment does not include the Company's pipeline asset, which was valued at up to $30 million on a PV12 basis by Gaffney Cline & Associates in 2006.
"We believe that Ryder Scott's report supports our view that PetroLatina has significant potential to create value for its shareholders. Our plan is to convert our Probable and Possible Reserves into Proved Producing Reserves and considerably increase production and cash flow through the drill program," said PetroLatina Executive Chairman Greg Smith.
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