VANCOUVER, BC, Oct. 20, 2020 /CNW/ - NGX Energy
International Corp. (formerly CruzSur Energy Corp.) (the "Company"
or "NGX") (TSXV: GASX) is pleased to announce that the
Company has accepted an offer from Compañia Argentina de Comodoro Rivadavia Explotacion de
Petróleo S.A. and Financier S.A. (the "Purchaser") to
acquire 100% of NGX's oil and gas interests in Alianza Petrolera
Argentina S.A. ("Alianza"), the Argentine subsidiary through
which NGX operates the Sur de Rio Deseado Este block and holds
interest in Estancia La Mariposa block.
Under the terms of the purchase offer, the Purchaser will
acquire Alianza and assume all rights and responsibilities relating
to the oil and gas assets and general operations of Alianza. As
consideration, the Purchaser has granted a royalty of 7% to the
Company calculated on the future production result of the Sur de
Rio Deseado Este block, up to total royalty payments of
$100,000. The transaction also
includes the assumption by the Purchaser of all responsibilities
for any existing and future liabilities, as well as a guarantee of
indemnity for potential claims against NGX, its related companies,
former directors, executives, employees, representatives and
advisers. The decision to sell was based on the political and
macroeconomic situation in Argentina, currency devaluation, continuous
rising inflation, GDP drop and government restriction in the
currency markets that make investments in Argentina highly risky. With the completion of
this transaction, the Company will have no further business
presence in Argentina.
With the Company's recent discoveries made in Colombia, where it has its most prospective
assets and with a stable political and economic situation, the
Company has decided to focus on production and commercialization of
natural gas in our Maria Conchita,
SN 9 and Tiburon blocks in Colombia.
About NGX Energy International Corp.
NGX Energy International Corp. is a publicly traded E&P
company on a mission to provide a clean and sustainable solution to
Colombia's energy needs. The
Company intends on executing this mission
by producing and bringing gas to the premium priced
Colombian gas market from its concessions, SN-9, a 311,353 acres
block which is adjacent to Canacol's Nelson field, as well
Maria Conchita, a 32,518 acre block
located in the region of La Guajira. NGX's team has extensive
technical expertise and a proven track record of building companies
and creating value in South
America. For more information please visit SEDAR
(www.sedar.com) and the Company's website
(www.ngxenergyintl.com).
Forward-Looking Information
Except for the
statements of historical fact, this news release contains
"forward-looking information" within the meaning of the applicable
Canadian securities legislation that is based on expectations,
estimates and projections as at the date of this news
release. The information in this news release about the
completion of the operations described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE NGX Energy International Corp.