PELE Petrolatina

RNS Number:2603P
Petrolatina Energy PLC
10 January 2007



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


                       JANUARY 2007 - OPERATIONS UPDATE



Petrolatina Energy Plc ("PetroLatina" or the "Company"), an independent oil and
gas exploration, development and production company, focused on Latin America
and currently producing approximately 500 barrels of oil per day, is pleased to
provide the following operations update.

Colombia

Exploration Licences - Middle Magdalena Valley

The Company has been conducting an update of its view on the potential of the
Midas and La Paloma licences, using the seismic and well data base obtained in
conjunction with the licences. The work on La Paloma has been completed and this
has provided a significant upgrade in the potential of this licence. The Company
now believes that un-risked recoverable resources of up to 90 million barrels
(net - 58.5 million barrels) exist on the La Paloma licence. This is an increase
from the initial view of 20 million barrels (net - 13 million barrels).

The work on the Midas licence is ongoing and should be completed in the first
quarter of 2007.

A programme to acquire additional seismic on both blocks is expected to commence
during the second half of January 2007.

Additionally, the work programmes on the three technical evaluation areas 
("TEA's") acquired with Petroleos del Norte, has been completed and the Company 
is evaluating the results. Application to extend one or more of the TEA's to 
full exploration licences is expected late in the first quarter. Details on the 
TEA's is set out on the Company's website.

Serafin

Work on the Serafin gas accumulation is well under way. The surface location has
been prepared and the work-over rig is expected to move on site during the week
of 15th January 2007. The initial results from production testing are expected
by the end of the month.

Guatemala

Atzam -2

The Atzam well was worked over in late 2006. The well encountered a strong
pressure regime and oil flowed to surface. The work-over also identified damage
to the casing and cement work. The Company is therefore planning remedial work
on the well bore to allow the well to be fully tested.

Tortugas

Following completion of all necessary central Government approvals and consents
to start work on licence A7- 2005 generally, the Municipality of Coban refused
consent for access to the Tortugas area of the licence. The Company has
therefore declared force majeure and all operations have been suspended on the
licence, with the exception of those related to Atzam -2.

Accordingly, operating and administrative staff in Guatemala, together with
other field and office costs, have been reduced to minimum necessary levels.

Nicholas Gay, President and CEO, commented:

"The revised estimates from La Paloma announced today combined with the news
announced previously on the Rio Zulio - Ayacucho Pipeline and the forthcoming
testing on the Serafin gas accumulation underlines the value of the Colombian
portfolio of assets put together in 2006.  PetroLatina is well placed for an
exciting year in 2007 and looks forward to updating the market in due course."



                                     -ENDS-

                                                               10th January 2007

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 .



For further information, please contact:


PetroLatina Energy
www.petrolatinaenergy.com
  
Nicholas Gay             nicholasgay@petrolatinaenergy.com      +44(0)2072974360



Pelham Public Relations
         
Charles Vivian           Charles.vivian@pelhampr.com            +44(0)2077436672
Philip Dennis            philip.dennis@pelhampr.com             +44(0)2077436363



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

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