PELE Petrolatina

RNS Number:3239I
Petrolatina Energy PLC
31 August 2006

                             PETROLATINA ENERGY Plc
                           www.petrolatinaenergy.com



                      COMPLETION OF #4,200,000 FUNDRAISING
                             AND OPERATIONS UPDATE


PetroLatina Energy Plc ("PetroLatina" or the "Company") (AIM:PELE), an
independent oil and gas exploration, development and production company focused
on Latin America, is pleased to announce that it has raised #4,200,040 through a
placement of 21,000,200 ordinary shares with UK investors.


The funds raised will be used to replace a significant portion of the internal
funds utilised to complete the first stage of the acquisition of Petroleos del
Norte S.A. ("PDN") on 16th June 2006.


Application has been made for the new ordinary shares to be admitted to trading
on AIM and dealings are expected to commence on 1st September 2006.


The equity issue was led by Seymour Pierce.


Petroleos del Norte S.A. and Colombia


As noted in previous releases, PDN greatly enhances PetroLatina's asset base in
Colombia and brings with it net production of 523 barrels of oil per day 
("bopd") from three licences situated in the Middle Magdalena Valley, proven and
probable reserves of 6.9 million barrels (net to its interests), the revenue
generating Rio Zulia - Ayucucho Pipeline and three additional exploration
(technical evaluation) licences.


More importantly, PetroLatina holds interests in two further exploration
licences in Colombia  having the combined potential for recoverable reserves of
up to 110 million barrels (76 million net to the Company). The licences are
known as "Midas" and "La Paloma" and are also situated in the Middle Magdalena
Valley Basin adjacent to PDN producing fields.


The Company's current Colombian activities provide a secure and stable income
stream and are self financing.


OPERATIONS UPDATE AND WORK-PROGRAMME


Colombia


  * Sarafina Gas Well - Within one of the PDN operated fields in Colombia, the
    Tisquirama acreage, is the Sarafina exploration gas well, abandoned in the
    1970's after flowing more than 85 million square cubic feet ("mmscf") of
    clean dry gas. PetroLatina intend to re-enter this well before the end of
    2006 and tie production into the nearby gas pipeline system through the
    construction of a 3.5 km new pipeline link. Early indications are that this
    well could produce at a minimum 6 mmscf per day.


  * Miidas and Paloma exploration licences - Environmental assessments have
    commenced, a detailed seismic reprocessing program is under way and the
    Company is currently planning an extensive 2D seismic shoot in early 2007 to
    complement available reprocessed data.


Guatemala


  * Well 1X sidetrack was completed on schedule, experienced none of the
    problems encountered with well 3X and showed four potential hydrocarbon
    bearing intervals. Full testing of this well will commence in September.


  * Well 3X is currently shut in to build reservoir pressure.


  * Tortugas / Atzam - This project has been temporarily delayed following
    environmental work which uncovered Mayan ruins within the licence area.
    PetroLatina is working with the Guatemalan Government to ensure that any
    work carried out does not interfere with the ruins. PetroLatina plans to
    work-over three wells within these licence areas during the latter part of
    2006.




Nicholas Gay, Chief Executive Officer, commented:

"This additional fundraising will be used to ensure the development programme in
Guatemala continues as planned following the acquisition of PDN. PetroLatina now
has a varied and versatile portfolio of production and exploration assets within
Colombia and Guatemala which provides the company with a solid footing within
Latin America to further increase shareholder value."



                                                                31st August 2006



For further information, please contact:

PetroLatina Energy              Nicholas Gay,       Nicholasgay@petrolatinaenergy.com      +44(0)2072974360
www.petrolatinaenergy.com       President & CEO

Pelham Public Relations         Charles Vivian      Charles.vivian@pelhampr.com            +44(0)2077436673
                                Phillip Dennis      Phillip.dennis@pelhampr.com            +44(0)2077436672

Seymour Pierce                  Jonathan Wright     jonathanwright@seymourpierce.com       +44(0)2071078050








                      This information is provided by RNS
            The company news service from the London Stock Exchange
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