Platino's 2015 Capital Budget Targeting Production Growth

Source: www.gulfoilandgas.com 2/2/2015, Location: South America

Platino Energy Corp. 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.


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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