CALGARY, ALBERTA -- (Marketwired) -- 05/14/13 -- Platino Energy Corp. ("Platino" or the "Company") (TSX VENTURE: PZE) is pleased to provide an update on its operations, including an increase in its working interest in two of its exploration properties. The Company also provides a financial update as at the period ended March 31, 2013 and confirms the filing of its financial statements and management's discussion and analysis ("MD&A") for the three months ended March 31, 2013.
Coati Block - 100% Working Interest(1)
Platino has agreed with its partner, Canacol Energy Ltd. ("Canacol"), to amend the terms of the existing farm-out agreement on the Company's Coati block, located in the Putumayo basin of Colombia. Under the previous agreement, Canacol would have earned a 40% working interest in return for paying 80% of the costs of one exploration well plus an additional amount for seismic. Under the revised agreement, the terms of the arrangement have been reduced by half, resulting in Platino retaining an 80% working interest in the block and Canacol's participation being reduced by half to 20% working interest in return for paying 40% of one exploration well plus an additional amount for seismic.
The Company continues to make good progress on civil works for the Coati-1 exploration well. Bridge construction is complete, construction of 16 km of roads is 55% complete and construction of the well site pad is 45% complete. Rig mobilization to the drill site has begun as of this week. Platino expects to spud the Coati-1 well in June 2013, as previously announced.
"We are pleased to have reached satisfactory agreement on revised farm-out terms with our partner," said Dr. Tomas Villamil, President and CEO of the Company. "Coati is the largest potential prospect in the Company's portfolio, a block we have been looking forward to drilling for several years, so we are happy to re-acquire an increased participation in the block." Dr. Villamil adds "the entire Platino team is focused on preparations for an anticipated June 2013 spud date for the Coati-1 exploration well." The well will target the Caballos formation at a total depth of approximately 10,500 feet. Results from the well are anticipated in Q3 following an extensive planned testing program.
(1) Working interest will be reduced to 80% upon Canacol earning-in in accordance with the farm-in agreement.
Andaquies Block - 100% Working Interest
In connection with the amendment to the Coati block farm-out agreement between Canacol and Platino, Canacol has also agreed to transfer to Platino its 36% working interest in the Andaquies block, located in the Putumayo basin of Colombia. As a result of the transfer, Platino's working interest increases from 64% to 100%.
The Company plans to shoot a 3D seismic survey around the previously drilled Tardigrado-1 well drilled in 2012 by C&C Energia Ltd. and Canacol. Management believes the partners may have missed the original reservoir target as a result of drilling based only on 2D seismic data. Additionally, there are several other features on the block the Company plans to study. Platino intends to seek out a new partner for the block prior to carrying out any further exploration activity. All required ANH commitment spending has been completed on the block, allowing the Company until August 2016 to plan and execute a seismic survey and any potential future drills.