Petrolatina. Focus Here!


Focus here!

We have been watching Petrolatina here for quite some time. I was especially puzzled at the big drop when they announced their Interims. It seems that some out there based their investment on Colon 3 results alone ignoring the fact that Petrolatina posted a 111% increase in revenues for 2010 June of $9.6 million.  Gross profits more than doubled to over$6.4 million over a 100% increase in gross profit up to June 2010!

Average gross production increased to approx’ 1700 bopd and Total gross production for the period increased by approximately 65% to 307,556 barrels. Colon 1 and 2 production has nearly doubled while Colon 3 has a tight formation that has resulted in a restricted flow even though production from colon 3 may come on-stream from the Umir formation!

Petrolatina have drilled 8 successful wells in 2009. They currently have a 1.3million barrel management estimate on their Midas block alone with a whole host of other producing wells. There is a raft of information re’ seismic and production enhanced techniques being utilised by the company to further increase production and add share-holder value. Their top man Luc Gerard(not of Star Trek) is said to be quietly confident that the updated independent reserves report scheduled to be released shortly will further add significant upside to their reserves.

It looks and feels to me that Petrolatina have certainly bottomed out and are well on the way to a significant price increase over the coming months.

They are certainly a bargain given that 3/4 years ago they were trading at over 300p while only recently they spiked up to 90p. Like most small cap oilers Petrolatinas message has been lost some-where along the line by investors focusing on the Colon 3 drill while ignoring the company as a whole.  Investors should research this company as they are known to be about to inform the markets that their independent reserves report has significantly increased reserves!

So just what should Petrolatina be trading at? Well 40p! There is a distinct possibility that an 80/100p target is on the cards here these will begin to rise just like xel have on expectation of further good results!

A cool head will help here. Cold fact is that they will rise significantly over the next year or so!



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  1. SolaKing says:

    Dan the Man,
    Welldone, that is another fantastic one you have pulled out. Don’t want to miss this one as I missed 400% rise in XEL (was watching it since 67p)
    Cheers & thanks, SK.

  2. Jimmy says:

    Hi Daniel,

    What about BTC, MXP, LGO, PCI,CLF,TPJ,GCM,PFD…………. Any news on these gems……………

    Are these long term investments……… How long by the way……………. one year , two year ………………… any idea or they have done what they supposed to do…..Your comments greatly appreciated.. Thanks

  3. Mark says:

    Hi Dan,

    Just checking the charting for this on LSE – it is showing that over the last 5 years it has not traded above 90p – not sure where you got the 300p from, unless LSE is out of date?


  4. LT says:

    Hey Dan, by the time you update the Blog re Matra they will have announced the PL and both wells on production!! LOL
    Gotta have a laugh eh?

  5. Eric says:

    Love to see where this company is in the next few days or even tomorrow? I have been watching this since its fall from 90p.

    Hope those make profit on it who invested today

    Good Luck to all of you

    I am still watching it from sideline and see how far it goes

  6. Mark says:

    When you compare PELE to ARG (Falkland Oil explorer), as their share prices are near identical, it does seem mad that PELE are not higher. PELE have assets and a cash income from oil, ARG have great plans but nothing else! I know where my money is best put!


  7. Eric says:

    Focus on PELE

    Down 4%. Did its work yesterday Now over for few months

    Good Luck to all who bought yesterday

    Check out my yesterday’s comments

  8. Christian Fox says:

    Dan, take a serious look at Roxi Petroleum, RXP. Their market cap today is equivelent to 20% that of MXP, RXP’s fellow Kazakhstan oiler.

    RXP looks like a multibagger to me and Matrix have a 19p target, currently 4.75p to buy.

    Plenty of newsflow due between now and the end of year so please dyor.