Petrolatina Energy Plc (LON:PELE) (LON:PELE) announced today their annual results for 2009. The independent oil and gas exploration, development and production company reported today that they had successfully drilled eight new wells during the period, six of which were commitment wells of which PetroLatina carried Ecopetrol's share of the costs. The remaining two wells are due to be completed in 2010. According to the report, the results of satisfying the commitments of the wells will reduce the company's share of cost per well by 50%, whilst also maintaining it's agreed share of revenue.
Financially, production was up by 58% over the year, to 489,159 barrels, at an average daily production rate of 1.340 barrels of oil per day - a significant increase from the 849 barrels per day the previous year. Net production for the year increased by 162% to 233,385 barrels of oil, at an average daily rate of 639 barrels of oil per day, compared to 244 barrels in 2008. Volumes transported through the company's Rio Zulia-Ayacucho pipeline increased from 983 barrels to to over 1.27million barrels. All of this, plus a reduction in general administrative costs, meant that revenue increased by approximately 78% to $13.8million over the year, a sharp hike from 2008's $7.8million. Gross profits rose from $3.4m in 2008 to $4.38 and EBITDA rose from a loss of $1.2m in 2008 to positive $5.25 in 2009. A $11.165 million convertible loan investment was secured during the year from Tribeca Oil and Fas Financing, a subsidiary of the company's largest shareholder - Tribeca Oil and Gas Inc.
Since January 2010, the company has reportedly increased production further by 17% to 149,810 barrels at an average daily production rate of 1.664 barrels per day. They have also appointed Evolution Securities Limited as a new joint broker and begun a four year senior credit facility with Macquarie Band, of up to, in aggregate, $75m - intended to finance the company's ongoing drilling schedule. The Zoe-1 well is currently flowing at approximately 42 barrels per day and the Latco-1 rig has been mobilised to the Santa Lucia field where it is currently in use drilling the Santa-Lucia-4 development well. Going forward, the company expect production to increase, joined by an increase in RZQ pipeline. Luc Gerard, Executive…
