RNS Number:8538Q
Petrolatina Energy PLC
27 March 2008


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

  Proposed 1 for 5 Share Consolidation, Increase in Authorised Ordinary Share
                Capital and Directors' Share Capital Authorities

PetroLatina is pleased to announce that it intends to consolidate its ordinary
share capital, and to increase both its authorised share capital and the
Directors' authority to issue shares. The Company will shortly be writing to its
shareholders to explain, inter alia, why the Directors consider these proposals
to be in the best interests of the Company and its Shareholders as a whole and
to recommend that Shareholders vote in favour of the requisite resolutions at an
extraordinary general meeting ("EGM") which will be convened to take place in
late April, 2008.

The Board is proposing a capital reorganisation which, if approved, will involve
the consolidation of the existing ordinary share capital of the Company on the
basis of:

1 new ordinary share of US$0.50 each for every existing 5 ordinary shares of
US$0.10 each (the "Consolidation").

The primary aims of the proposed Consolidation are as follows:

   * To enable the Company's shares to trade at a market price that is at a
     level more in line with that of other comparable listed oil and gas
     companies;
   * To reduce the number of shares in issue to a more manageable level;
   * To potentially reduce the spread between the bid and offer price for the
     Company's shares as a proportion of the share price;
   * To improve the attractiveness, liquidity and marketability of the
     ordinary shares; and
   * To stem the decline in the Company's market share price by removing the
     perception of some investors that the Company is a "Penny Stock".

Following implementation of the Consolidation, the new ordinary shares will have
identical rights to those currently held by the existing ordinary shares
including their ranking for dividends. The terms of the existing warrants
outstanding will be adjusted accordingly.

In addition, it is proposed that the Company's authorised ordinary share capital
be increased from the currently prevailing nominal amount of US$20,000,000 to
US$30,000,000 by the creation of 100,000,000 ordinary shares of US$0.10 each,
and that the Directors be granted the authority to allot equity securities,
without offering those equity securities pro rata to existing shareholders, up
to an aggregate nominal amount of the increased authorised share capital. The
Board considers that it is in the best interests of the Company and its
shareholders generally, that the Directors should have the flexibility conferred
by such authorities.

The aforementioned proposals will require the approval of Shareholders at the
EGM, formal notice of which will be posted to Shareholders and made available on
the Company's website shortly.

Application will be made for the new consolidated ordinary shares to be admitted
to trading on AIM. It is intended that such admission will become effective and
that dealings in the new consolidated ordinary shares will commence following
the EGM, the date of which will be announced in due course.

Greg Smith, Chairman, today commented:

"These represent exciting times for PetroLatina, and the proposed Consolidation
will assist in making the Company an attractive investment to investors seeking
exposure to a balanced portfolio of exploration, development and productive
assets in one of the most exciting geographical areas in the world. We envisage
substantial opportunities ahead for PetroLatina, and will seek to develop the
Company into a leading oil and gas company in Latin America. The proposed
Consolidation is the first step towards driving PetroLatina to the next level,
and we look forward to informing Shareholders of further progress shortly."

For further information please contact:

Greg Smith, Chairman / Pawan Sharma,  PetroLatina Energy Plc   Tel: 020 7808 4851
Executive Vice President - Corporate Affairs 

Simon Raggett / Warren Pearce         Strand Partners Limited  Tel: 020 7409 3494
                                      
Ben Brewerton                         Financial Dynamics       Tel: 020 7831 3113






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

END
MSCBRGDXDBDGGIL
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.