Q2 2015 results: WELL ABOVE Expectations at all fronts!Q2 results are out and the company surprises us positively! PTA is full of cash pro-forma the PNA deal, debt-free and has a lot of low-cost, high-impact drilling choices:
- PTA's Cash is higher than US$20 million that was initially projected a few weeks ago:
The Company, as of the date of this press release, holds approximately US$25 million in cash, US$11 million in estimated working capital, and over US$13 million in restricted cash. On April 19, 2015, the Company repaid the Canadian dollar denominated C$35 million debenture that had been in place since April 2012 using cash-on-hand and is currently debt free. The Company is currently projecting that as a direct result of cost savings initiatives, improvements in the realized oil price, and changes to the capital spending plans for the current year, it will maintain sufficient cash to meet all of its planned commitments throughout the rest of 2015 and into early 2016.
- PRO--FORMA PNA's acquisition and the recent workovers and re-completions, the production NOW is 4,104 boepd! And PTA achieved this target WITHOUT spending a significant amount of money, given that PTA's Cash is US$25 Million NOW, excluding the restricted cash. I quote: The Las Maracas-5 well has tested at 1% watercut, but has not established a stable rate and the evaluation is ongoing. Company working interest production to August 23 was approximately 3,770 boepd, and with the recent Las Maracas recompletion contribution, has been approximately 4,104 boepd for the most recent 6 days up to August 23. - Very Low CapEx for H2 2015: Petroamerica's expected capital spending projection for the same period is approximately US$8.5 million. - Negligible losses in Q2 when the other energy producers in North America lost several millions of USD! - Several Near-Term High Impact wells with very low cost for PTA because PTA is carried. I quote:
Following the acquisition of PetroNova, and including wells already scheduled by Petroamerica, a number of high impact exploration prospects are expected to be drilled in the near-term. A summary of exploration, appraisal and development operations expected for the remainder of 2015 and early 2016 is outlined in the following table:
| Prospect/Well | | Activity Type | | Block | | Working
Interest | | Expected Timing/Status |
| Tautaco | | Exploration | | LLA-10 | | 50% (carried)1 | | Q4 2015 |
| Crypto | | Exploration | | El Porton | | 100% | | Q1 2016 |
| Cumplidor N Sand | | Appraisal | | PUT-7 | | 50% | | Q1 2016 |
| Tinigua-1 | | Exploration | | Tinigua | | 40% (carried)2 | | 1H 2016 |
| Cohembi-16 NSand3 | | Development | | Suroriente | | 15.8% | | Q1 2016 |
| Cohembi-17 NSand3 | | Development | | Suroriente | | 15.8% | | Q1 2016 |
| | | | | | | | | | | |
- PTA's share of capital for drilling the Tautaco well is 5.5% of the well costs, with the remainder being fully carried under a farm-in arrangement with Parex Resources Inc.
- Under the farm-in agreement with Metapetroleum, PTA will pay 10% of capital for drilling the Tinigua-1 well, and retain a 40% working interest. Drilling costs for an optional second well will be fully carried by Metapetroleum up to $7 million.
- Contingent on oil price
We have recently received contract phase extensions from the ANH for the PUT-7!