Colombian focused E&P Petroamerica Oil (TSXV:PTA) filed their financials last night and provided an operational update (Here's the news release). This is the first from PTA since they successfully acquired Suroco Energy in July in a hotly contested takeover contest.

The company reported a substantial increase in reserve numbers on the newly acquired Suroco assets. These numbers increased significantly in a June 30, 2014 independent report by GLJ; 48% from year end 2013 on gross proved reserves, 87% on proved plus probable, and 134% on proved plus probable plus possible. This increased Suroco's reserve life index from 4 years to 5.4 years, and is the result of successful exploration and development drilling in the Putomayo Basin. According to analysts at Canaccord Genuity, PTA's mid-year 2P after-tax (NPV10) value was assessed at approximately $134 million (as compared to $66 million as of December 31, 2013).

Petroamerica has ambitious growth plans in the Putomayo, however announced that production from the Suroriente block (15.8% to Suroco) there has been offline since June 13, 2014 as the result of a local community blockade. This field is operated by Suroco take-over combatant, Vetra Energy, where the recently drilled Q-7 was producing at more than 3,500 boepd, a very significant well.

Management continues to be effective on the business development front. Petroamerica successfully bid on the PUT-31 block in the Putomayo Basin (65% to Gran Tierra, 35% to PTA). "The block is interpreted to lie in the sweet spot of the N-Sand play fairway in the Putomayo," said the company. This is the first time Petroamerica and Gran Tierra have partnered up together.

PTA also increased its share of the Llanos-10 block from 50 to 89% at no cost by assuming Canacol's interest. This was subsequently farmed out to Parex (44.5%) for covering $2.5 million for civil works and 89% of the dry-hole cost of one exploration well, subject to ANH approval.

Operationally, company production averaged 6,513 boepd, exiting the quarter at 6,013 bopped. I suspect this drop is the result of an increased water cut at Las Maracas, the company's core field. There, Petroamerica and JV partner Parex Resources are expanding their water treatment and injection plant to 75,000 barrels of water per day, scheduled for the end of October, 2014. Additionally, LM-15 was drilled and is producing an average of 1650 bopped. LM-16 was drilled and is being used to inject produced water.

The La Casona field is seeing expansion of its gas compression plant to be completed this month. This will allow LC-2 to come online as a mirador formation producer.

Up to six exploration wells will be spudded (means drilled) in the balance of 2014; four in the Llanos basin, two in the Putomayo. Additionally, 8 development wells will be drilled in the Putomayo in 2014 and early 2015.

Screen shot 2014-08-20 at 7.29.05 AM

Source: PTA news release

A revised production guidance and capital spending program will be released by mid-September, 2014.

Here's the news release: Petroamerica announces 2014 second quarter results, a material increase in Suroco reserves and provides an operations and new business update

I am a shareholder in PTA. Always do your own due diligence.