PentaNova Energy Corp. is an international oil and gas company, aggressively executing our business plan by positioning in countries where we can grow production, explore for new reserves and create shareholder value. Our initial focus is South America, currently Argentina and Colombia.
The Company has initiated activities with an initial focus in Colombia and Argentina. PentaNova is applying a two-pronged approach to growth, establishing a base of production, development and exploration assets through selective acquisitions, and a joint venture in an undeveloped heavy oil asset with YPF, the Argentine national oil company. In parallel, the Company is proving up the San Jorge southern basin edge as a regional heavy oil province, a portfolio that the Company expects will support consistent future growth through drilling. In the future, we intend to duplicate our business model across basins in Colombia and Argentina and consider expansion into other countries in South America on an ongoing basis.
The pace of oil and gas exploration and development in countries around the world is dictated by geology, market forces and the impact of government policy and regulation. These factors have combined today to create opportunities in South America. The initial countries of interest to the Company are Argentina – where the energy vision of the Macri government is beginning to reverse fifteen years of underinvestment in the country; and Colombia – where the country has restructured its energy policies to appeal to foreign companies to achieve long term self-sufficiency in natural gas and extend the access to natural gas to a much larger percentage of the cities across the country.
A key to the Company’s business plan is positioning – being in the right place at the right time with the right resources. The Company intends to focus on countries that are welcoming to foreign investment, that provide attractive fiscal terms and/or offer opportunities that have been previously ignored or undervalued. PentaNova believes it has picked the optimal time in the political and market cycles to position in Colombia and Argentina, achieving negotiating and pricing advantages. The combination of drill ready development projects with massive game changer heavy oil fields means that the Company can develop cash flow while working on the large-scale projects.