start of production from Moriche later this weekout of todays Morning Coffee from Canaccord July 21th2010:
Petrodorado Energy* (PDQ : TSX-V : 0.24), Net Change:0.01, % Change: 4.35%, Volume: 276,515
Please tuck me in. On Monday,Petrodorado Energy announced the proposed acquisition of Loon Energy(LNE) in an allstock transaction. Petrodorado and Loon have entered into a non-binding letterof intent, whereby Petrodorado will acquire Loon for approximately 19.2 million shares of Petrodorado plus $3million of Petrodorado shares that could be issued if certain exploration goals with respect to Block 127 in Peru are met. CanaccordGenuity Oil & Gas Analyst Fredrick Kozak notes that since this is a non-binding letter of intent for Loon Energy, thereremains the remote possibility that another suitor could appear for Loon. However, given that Loon’s only near-term asset is a 20%interest in the soon-to-be-drilled Buganviles Block in Colombia, another bidder is highly unlikely. Petrodorado is an oil andgas exploration and production company with producing operations in Colombia and exploration assets in Peru and Paraguay. Thecompany has working interests in six Colombian properties, two Peruvian properties and one block in Paraguay. Kozak isbullish on the story and notes the next catalysts include the start of production from Moriche later this weekas well as testing and drilling on the La Maye Blocks starting in August/September and drilling onthe Buganviles Block in August.Further drilling is possible in Q3/10with a potential second well on the Moriche Block, and drilling on the Talora Block in September should provide valuablegrowth from a resource potential.