RNS Number:9009W
Petrolatina Energy PLC
21 May 2007


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

                               Operations Update

PetroLatina Energy Plc ("PetroLatina" or the "Company") an independent oil and
gas exploration, development and production company, focused on Latin America,
is pleased to provide the following operations update.

Colombian Exploration Blocks

The Company has successfully re-negotiated a reduction in the carried interests
of the local partners in La Paloma and Midas exploration blocks from 30% to 15%.
PetroLatina now holds a working interest of 80% in both licence blocks.

PetroLatina has committed to the 2nd exploration phase at La Paloma, which calls
for either the re-entry of an existing well or the drilling of a new exploration
well within the next 12 months. The newly acquired seismic data in the La Paloma
block shows a well defined four way dip closure at base Tertiary / Cretaceous
level. Macquarie Bank has a mandate to provide finance for the second phase.

The Company has also committed to the 2nd and 3rd phases at Midas, which calls
for 20 kilometres of new 2D seismic and the drilling of two exploration wells
within the next 24 months. The newly acquired seismic data shows some very
interesting prospects. A Farm Out is being considered for this block.

Colombian Producing Fields

The Company is currently in discussion with Macquarie Bank in relation to the
terms of a $20 million debt financing to fund the second payment for Petroleos
Del Norte and the further development of the PDN interested fields, Santa Lucia
and Los Angeles, on the Tisquirama licence.

At the same time, PetroLatina is involved in ongoing discussions with Ecopetrol,
the Colombian State Oil Company, to reach mutually acceptable terms regarding
the extension of the Tisquirama Licence.

PetroLatina is also finalising the logistics to put the Serafin gas well on
production in August 2007.

Guatemala

The decision has been made to Farm-Out the Company's Guatemalan assets.
PetroLatina has signed a US$ 175,000 four month option contract with a potential
local buyer to acquire the assets for US$ 4 million. The Company shall also
retain a 20% carried interest in the first three wells.

The decision to sell and Farm-Out the Guatemalan assets will result in a large
write-down in the 2006 financials.
London Office

The London office will we closed, leaving just a small representation in the
United Kingdom. This action will reduce the general and administrative overhead
of the Company by an estimated US$ 2 million a year. All technical work will be
carried out in Colombia, with some work being outsourced where required.


Rudoph Berends, President and CEO commented:

"Since I took over as Chief Executive Officer on 14th March 2007, and following
a complete review of the Company in every respect, there has been a need to make
some difficult but constructive decisions to ensure the operational and
financial future of PetroLatina. This update outlines actions that have been
taken to this end, thus giving the Company every chance of realising its goal of
providing value to shareholders in the future"


21st May 2007

For further information, please contact:

PetroLatina
Energy                     
Rudolph   rudolphberends@petrolatinaenergy.com   +44(0)2072974360
Berends,                                         
President and CEO

www.petrolatinaenergy.com






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

END
MSCDVLFFDEBFBBD
Petrolatina Energy (LSE:PELE)
Historical Stock Chart
From Jul 2024 to Jul 2024 Click Here for more Petrolatina Energy Charts.
Petrolatina Energy (LSE:PELE)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Petrolatina Energy Charts.