PELE Petrolatina

RNS Number:7412I
Petrolatina Energy PLC
29 November 2007


29 November 2007

                             PetroLatina Energy Plc

                        ("PetroLatina" or the "Company")

                       Confirmation of Licence Extension


  Extension of key Tisquirama licence for economic life of the fields has been
                                 fully ratified

PetroLatina, the oil and gas exploration and production company focused on
Colombia, announces that it has secured the extension of the Tisquirama licence
for the economic life of the fields.  Without this agreement the licence would
have expired in 2009.

Under the original terms of the Petroleos del Norte ("PDN") acquisition, a
second cash payment of US$13 million was due upon the extension of the licence.
However, PetroLatina has now reached agreement with the vendors of PDN to make a
cash payment of US$7 million and to issue to the vendors new PetroLatina shares
to the value of US$3 million. The vendors of PDN now form part of the
operational management of PetroLatina.

As part of the agreement to secure the licence extension, Ecopetrol S.A., the
Colombian state oil company, will increase its participation in the Los Angeles
and Santa Lucia fields from 50% to 60%.  The agreed work programme for these two
fields now includes six development wells and four exploration wells over the
next two years.

The agreement has been ratified by the board of directors of Ecopetrol. In order
to legalize the agreement, it is necessary to create a joint working team put
together by PDN and Ecopetrol to prepare and submit the licence Amendment to the
Hydrocarbon National Agency (Agencia Nacional de Hidrocarburos "ANH").

PetroLatina anticipates making further announcements regarding its planned
drilling programme and an updated production profile in the coming weeks.  The
Company is also in detailed discussions to secure the financing required for the
planned drilling and development.  This facility will enable the Company to
enter the second phase of the development programme in Colombia and increase
cash flow dramatically. Further announcements regarding the financing will be
made in due course.


Greg Smith, Chairman and Founder of PetroLatina, said:

"These agreements secure the inherent value of PetroLatina and allow us to start
planning for the future. I believe the Company has tremendous potential and
value.  We have positive cash flow, substantial proved, probable and possible
reserves, plans to increase volume through our pipeline and to develop and
commercialise the reserves."



Enquiries:

Greg Smith                    Executive Chairman                   07717 880923
Ben Brewerton                 Financial Dynamics                  020 7831 3113
Jonathan Wright               Seymour Pierce                      020 7107 8000



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