BOGOTA D.C., Colombia, Nov. 15, 2011 /PRNewswire/ -- La Cortez Energy, Inc. (OTC: LCTZ) ("La Cortez" or the "Company"), is pleased to report that it has filed its unaudited quarterly operating and financial results for the three and nine months ended September 30, 2011. The Company reported strong operating and financial results compared to the same period last year, highlighted by significant revenue increases from increased production from the Mirto-2 well, as well as the re-initiation of production from the Mirto-1 well in the Maranta block.
The following tables provide a summary of the Company's financial and operating results for the three and nine months ended September 30, 2011 and 2010. Condensed consolidated financial statements for these periods with Management's Discussion and Analysis are available in the Company's Quarterly Report on Form 10-Q filed on November 14, 2011, on the SEC website at http://www.sec.gov.
Summary Financial & Operating Results
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2011 | 2010 | 2011 | 2010 | ||||
Financial | |||||||
Oil revenues | $ 623,135 | $ 251,266 | $ 1,626,009 | $ 417,540 | |||
Loss from operations | $ (804,316) | $ (1,353,529) | $ (3,920,111) | $ (5,068,171) | |||
Non-operating income | $ 902,491 | $ 1,063,807 | $ 7,281,789 | $ 994,607 | |||
Income taxes | $ (8,474) | $ (39,757) | $ (29,977) | $ (39,757) | |||
Net income (loss) | $ 89,701 | $ (329,479) | $ 3,331,701 | $ (4,113,321) | |||
Basic and diluted earnings (loss) | |||||||
per share | $ - | $ (0.01) | $ 0.07 | $ (0.10) | |||
Basic and diluted weighted average | |||||||
common shares outstanding | 46,335,623 | 45,980,198 | 46,280,383 | 40,386,748 | |||
Operating | |||||||
Average Crude Oil Volumes | |||||||
Production (bbls), before royalties | 10,661 | 1,021 | 27,837 | 4,123 | |||
Sales (bbls), after royalties | 8,483 | 3,700 | 23,069 | 6,102 | |||
Quarterly Highlights
- Successful work-over activity in the Maranta Block (Mirto-2 field) in January 2011, and re-initiation of production in the Mirto-1 well in August 2011 increased net oil production before royalties for the three months ended September 30, 2011 to 10,661 bbls or 116 barrels of oil per day (bopd), compared to 1,021 bbls or 11 bopd for the same period in 2010. Net oil production increased to 27,837 bbls or 102 bopd for the nine months ended September 30, 2011, compared to 4,123 bbls or 15 bopd for the same period in 2010.
- Increased production from the Maranta Block led to significant revenue increases during the first nine months of 2011. For the three months ended September 30, 2011, the Company reported revenue of $623,135 compared to $251,266 for the same period last year, and revenues of $1,626,009 for the nine months ended September 30, 2011, compared to $417,540 for the same period in 2010.
- Significant operational progress was made in all three key assets during the first nine months of 2011, with primary focus on the successful work-over activities in the Mirto-1 & 2 wells in the Maranta Block. We were also able to secure the final required consents from the local communities on the Putumayo 4 Block, clearing the way for commencement of the seismic acquisition program at the end of 2011 and the drilling of our first exploration well planned in 2012.
- In preparation for the planned well service activity in the Puerto Barco-2 & 3 wells during the 4th quarter of 2011, we initiated operating activities in the area, including road upgrades and existing well field inspection. The initial well service is expected to commence in early December 2011, with initial production expected later in the same month. This activity in the Puerto Barco field is a very important milestone that will give Ecopetrol the opportunity to evaluate our ability to successfully implement exploration and development activity in the block beyond 2013.
Liquidity and Capital Resources
Our cash and cash equivalents balance as of September 30, 2011, was $4,618,746 compared to $8,327,020 as of December 31, 2010.This decrease was mainly due to increased payments for our operations, administrative expenses and capital expenditures associated with work-over activity in the Maranta block and exploration and development activity in other Putumayo and Catatumbo basin assets.
Cash on hand (exclusive of restricted cash) will allow us to continue ahead with our required commitments for seismic acquisition in the Putumayo 4 block, and our voluntary work-over activity currently underway in Puerto Barco field in the Catatumbo Basin. During 1st quarter of 2012 we will need to raise additional capital, which together with cash from operations will fund internal operations and our 2012 capital program.
Andres Gutierrez, President and CEO of La Cortez, commented on the quarterly results, "We are pleased to announce our third consecutive quarter of production and revenue increases from operations in the Putumayo basin with the announcement of our results for the quarter and nine months ended September 30, 2011. Our plans are to continue growing production and revenues during the balance of 2011, with our current efforts focused on achieving first production from work-over activity in the Puerto Barco field during the 4th quarter of 2011. We are also pleased to have recently announced our exploration and development program for 2012, highlighted by planned drilling activity in the Maranta Putumayo 4 Blocks, where we plan to drill two additional wells during 2012."
About La Cortez Energy, Inc.
La Cortez Energy, Inc. is a development stage oil and gas exploration and production company currently pursuing a business strategy in the energy sector in South America, with an initial focus on identifying oil and gas exploration and production opportunities in Colombia. To that end, the Company has established a headquarters office in Bogota, Colombia, and has entered into several joint venture agreements. These agreements include a 50% working interest in the Putumayo-4 block and for a 20% working interest in the Maranta block, both located in the prolific Putumayo Basin in Southwestern Colombia. The Company's current net acreage position in the Putumayo Basin is approximately 67,084 acres (172,080 acres gross). The assignment of the participation interest in both of the joint ventures is subject to the approval of the Colombian Hydrocarbon Agency - Agencia Nacional de Hidrocarburos (ANH).
In early 2010, La Cortez acquired Avante Colombia, Inc., which has interests in the Rio de Oro and the Puerto Barco fields located in the Catatumbo Basin in Northeastern Colombia. Avante Colombia currently has a 50% participation interest in, and is the operator of, the Rio de Oro and Puerto Barco production contracts with Ecopetrol S.A. Through this acquisition the Company's net acreage position in the Catatumbo Basin now totals 5,768 acres (11,535 acres gross).
Each of the Company's joint venture agreements are with experienced, established producers in Colombia, including Sinochem (Emerald Energy PLC - Sucursal Colombia), Petroleos del Norte S.A. a subsidiary of Petrolatina Energy PLC, and Vetra Exploracion y Produccion Colombia, Inc. The Company is currently producing from both of its two initial exploration wells in the Maranta Block, and will be targeting a potential exploration portfolio of 40 million barrels of net resource potential in the coming years.
For more information, please contact the Company's Investor Relations department at 941-870-5433or by email at info@lacortezenergy.com.
http://www.lacortezenergy.com/
Forward-Looking Statements
Certain statements in this news release are forward-looking statements. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "proposes", "may", "could", "should", "anticipates", "estimates", "likely", "possible", "potential", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information and assumptions of management. There can be no assurance that long-term production testing of the Mirto-1 well will be successful or that the Putumayo 4, Maranta and Rio de Oro and Puerto Barco projects will be successfully developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company, including, but not limited to, the Company's ability to identify other corporate acquisition and/or joint venture opportunities in the energy sector in Colombia, Peru and Brazil and, more generally, in Latin America, and to establish the technical and managerial infrastructure, and to raise the required additional capital, to take advantage of, and successfully participate in such opportunities, future economic conditions, political stability and energy prices. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
SOURCE La Cortez Energy, Inc.
