RE: RE: Another decent day any details you can provide would be great.
All of Petroforte’s producing property interests are currently located in Alberta, Canada. Petroleum and natural gas sales for the past 6 months where $82,749.
As at August 31, 2012 the Colombian operations held $93,037 (February 29, 2012 - $99,693) of property and equipment and the Canadian operations held the remaining $173,246 of property and equipment (February 29, 2012 - $200,808).
Brazeau River Project – Alberta, Canada
The Brazeau property is located approximately 50 miles southwest of the town of Drayton Valley in western Alberta. Petroforte has a non-operating working interest of six percent in each of the four producing wells; production is burdened by Crown royalties and an overriding royalty of three percent. The wells produce from the Manville (Gething) and Rock Creek zones. The Brazeau River project is Petroforte’s main producing property.
Expansion in Colombia
The Company incorporated a wholly-owned Colombian subsidiary, Petroforte Colombia S.A.S. in August 2011 and hired local management staff. During the six months ended August 31, 2012 the Company incorporated two subsidiaries in the British Virgin Islands (“BVI”). The Company is currently in the process of transitioning all of its’ business activities in Colombia to a branch office of one of the BVI subsidiaries, with a view to eventually wind up Petroforte Colombia S.A.S.
On March 29, 2012, Mr. W. Allan King was hired as CEO, President and Director of the Company to replace Mr. Kevin Adair, who was acting President and CEO. On April 26, 2012 Mr. Adair was appointed Executive Chairman of the Board. From 2009 to 2011 Mr. King was an Exploration Advisor for Petroamerica Oil Corp, an oil and gas company active in Colombia.
In relation to its Colombian operations, the Company is committed to total lease payments in the amount of $74,412 for the remainder of the fiscal year ending February 28, 2013 and $109,379 for the fiscal year ending February 28, 2014.
Recent Financing
On September 28 and October 19, 2012, the Company closed the first two tranches of a non-brokered private placement offering (the “Offering”). The Company issued 14,000,000 units for gross proceeds of $700,000. Units were priced at $0.05 per unit and each unit is comprised of one common share and one common share purchase warrant entitling the holder to purchase one common share at $0.10 per share for a period of two years from the date of issue.
Note: The Company does not have sufficient working capital to finance the next 12 months of operating and capital expenditure activities. As such the Company will have to complete additional financings in order to continue its current business plan
Shares OS: 52,866,500
Outlook
At present the Company’s strategy is to target opportunities in Colombia and Brazil, where there are positive political and economic situations, attractive royalty structures plus expanding service industries and infrastructure development. Initially the Company is focussed on acquiring production and cash flow to leverage its local commercial and technical expertise, after which it will add exploration opportunities in measured steps.