Serafin Gas Development

RNS Number:7958M
Petrolatina Energy PLC
28 November 2006

PetroLatina Energy Plc
("PetroLatina" or the "Company")

SERAFIN GAS DEVELOPMENT

Petrolatina Energy Plc ("PetroLatina" or the "Company") an independent oil and
gas exploration, development and production company, focused on Latin America,
is pleased to announce it has initiated development of the Serafin gas
accumulation in Colombia as expected.

RATIONALE & CASH FLOW

The Serafin gas accumulation was discovered in the early 1990's and tested at
flow rates of up to 16 million cubic feet of gas per day. Recent increases in
the price of gas in Colombia to $2.50 / $3 per thousand cubic feet mean the
project offers strong short term cash flow and economic returns, with projected
pay back in 5 months. The first commercial deliveries of gas are expected in the
second quarter of 2007. The revenues from this project are expected to increase
PetroLatina's annual cash flow substantially from its Colombian operations.

PRODUCTION POTENTIAL

Based on the above test rates and pressure data, gross reserves are estimated
between 4 and 8 billion cubic feet of biogenic gas. The plan is to re-enter and
work over of the well in January 2007.

PetroLatina believes there could be additional similar biogenic gas
accumulations on the licence and is currently conducting studies using its
existing 3D seismic coverage to identify further drillable prospects.

PetroLatina has a 50% interest in the project.

Further information on the Serafin Gas development can be found in the
'Background Information' section overleaf.

Nicholas Gay, President and CEO, commented:

"The initiation of the Serafin Gas accumulation is a key milestone in the
Company's development. We are now firmly focussed on Colombia where we already
have a revenue stream from oil production of approximately 500 barrels of oil a
day and pipeline tariff income. The Serafin gas development has proven test
rates and will provide the Company with additional early cashflows as well as
substantially increasing our revenues from Colombia. Management is pleased to
see the Company moving ahead as planned and we are excited about the further
developments over the coming months."

REVIEW OF RELEASE

This release has been reviewed by the Company's Chief Operating Officer (Mr. J.
Scott), and the Chief Geologist (Mr. K. Dean who is a Fellow of the Geological
Society, London).

Messrs Scott's and Dean's biographies are on the Company's website, which can be
found at www.petrolatinaenergy.com .

28th November 2006

For further information, please contact:

PetroLatina Energy Ian Refault, Chief Ianrefault@petrolatinaenergy.com +44(0)2072974360
www.petrolatinaenergy.com Financial Officer

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

Philip Dennis philip.dennis@pelhampr.com +44(0)2077436363

BACKGROUND INFORMATION

The Serafin gas discovery is located in the Tisquirama B area of the Tisquirama
licence and is located to the north of the PetroLatina operated Los Angeles
Field.

History

The discovery was drilled by Texas Petroleum in 1991. The target Paleocene
Lisama sands were absent but the well encountered an 18 feet thick gas bearing
sand in the Miocene Real Group. Log analysis indicates 18 feet of pay with a
porosity of 28% and a water saturation of 27%. The sand was tested from 4,582 to
4,598 feet and flowed up to 16.0 million cubic feet of gas a day on extended
tests. Reservoir pressure is 1,978 psi and the gas is over 97% methane. The gas
is considered to be most likely of biogenic origin and has accumulated in a
stratigraphic trap.

Gross reserves estimated from material balance calculations and volumetrics vary
from approximately 4 to 8 billion cubic feet of gas recoverable (2 to 4 billion
cubic feet net to PetroLatina)

Marketing & Logistics

The well is located 3.5 kilometres from a main gas pipeline and can be tied in
at that location.

The development plan is for the well to be re-entered and worked over in January
2007. It will be then tested. Based on the results of this, the tie in
connection and pipeline specifications will be designed. The pipeline is
expected to be installed late first quarter/early second quarter 2007 with first
commercial gas deliveries planned for late second quarter 2007.

Costs

The estimated cost of the development including the gas pipeline and tie in is
$1.36 million ($680,000 net to PetroLatina). The cost of the development will be
met from available cash resources.

Based on information available in Colombia, the current regulatory commission
for energy and gas ("CREG") gas price for the area in which the development is
located is approximately $3 per thousand cubic feet.

The gas is planned to be sold to local industrial users.

PetroLatina has a 50% interest in the project, with the other 50% being held by
PetroSantander Inc. PetroSantander operates the Las Monas field in Colombia and
is a partner in PetroLatina's Santa Lucia field.

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

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