petrolatina.gifThe AIM-listed PetroLatina (AIM: PELE) seems to be jumping for joy. The Columbian-focused oil and gas company today announced that it will receive a $25 MM cash injection from Columbian investment company, Tribeca Oil and Gas.

The agreement, which was originally set up last month, says that Tribeca will buy shares at a price of 76pence a share. The news gave a quite boost for the company's shares, which climbed up 13.64% to 50 pence a share yesterday.

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A golden opportunity?

Once the deal is completed, Tribeca will own 35% of PetroLatina. The new cash injection will enable the company to catch up with outstanding debts and will provide working capital.

"The investment by Tribeca will secure the future of the company and enable us to fund our planned programme of exploration and appraisal wells," PetroLatina chairman Greg Smith said.
"We currently expect to drill a minimum of four wells across our three licence areas in Colombia by the end of this year. Our plan is to increase proven reserves, production and cash flow considerably through the drill programme."

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The company holds an ace in its hand, as it made a seven times greater turnover for the six months ended June 30, 2007 compared to the same period ended in 2006! Revenues totalled $3,110,000 and $421,000, respectively.

In Colombia, PetroLatina owns 40% and 20% interests in the Los Angeles and Santa Lucia fields on the Tisquirama license, respectively, and a 100% interest in the Dona Maria field which together provided a daily production of approximately 450 barrels per day in the first six months of 2007.

Surely, the $25 million investment will give a major boost for the company. I sense here something interesting. Could it be the golden opportunity for investors to get it the game?

Reference

www.petrolatinaenergy.com
http://www.cityam.com/index.php?news=13857
http://www.petrolatinaenergy.com/documents/PELE_Interim_Results_30_06_07.pdf