Business
Petrolifera Petroleum strengthens balance sheet during third quarter 2009 (Q3 2009) with $58.5 million equity raise; Focus in fourth quarter 2009 is on testing La Pinta discovery in Colombia; Concluding Peru farmouts high on the agenda; Recent Argentinean drilling raises production 20% over Q3 2009 levels; Conference call scheduled for 9:00 AM MST November 9, 2009
Petrolifera Petroleum strengthens balance sheet during third quarter 2009 (Q3 2009) with $58.5 mi...
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\nNov. 6, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 6 /CNW/ -- Petrolifera Petroleum Limited substantially strengthened its financial condition and balance sheet during Q3 2009 with a successful $58.5 million equity raise comprised of a $57.5 million publicly-marketed, underwritten transaction and a $1 million private placement with management and directors on identical terms to the public offering. These new funds were used to strengthen working capital for future capital programs and to pay down a portion of the company's reserve-backed indebtedness. The company anticipates renegotiating its reserve-backed loan later this year; in the interim, we have classified this indebtedness as current, pending completion of the replacement facility with an extended term. There can be no assurance that a new facility can be secured on terms acceptable to the corporation.Petrolifera's priority in the short run is to reenter and test the La Pinta No.1 exploratory discovery in Colombia. We are carefully considering our alternatives before initiating this program, in order to maximize benefits at lowest attendant cost. We anticipate resolving our plan in the near future with the priority objective to test the oil-bearing Cienaga de Oro (\"CDO\") Formation, if possible. If not, we would move uphole and test upper zones indicated to be hydrocarbon bearing based on log indications and drilling results and determine the best method to evaluate the lower CDO reservoir, which flowed light gravity crude oil on test before a casing split required suspension of operations.Our second priority is to continue farmout negotiations on exploratory lands in Peru, Colombia and Argentina to maximize the benefit to our shareholders from our strong ownership positions in these prospective lands. The 2008-2009 commodity price and capital market collapse has forestalled this process to some extent. It is now a reality that large farm-out transactions take more time to complete than during the heady days prior to the market collapse. However, strong crude oil prices are stimulating renewed interest and new players and we remain optimistic about our ability to attract third party capital to finance exploration on our lands and identified prospects. As we approach the new 2010 budget year, many companies with surplus funds but which are prospect poor will s...