VANCOUVER, BC, Nov. 4, 2020 /CNW/ - NGX Energy International
Corp. (formerly CruzSur Energy Corp.) (the "Company" or
"NGX") (TSXV: GASX) (OTC: GASXF) is pleased to announce that
it has received a binding commercial offer from CPVEN (the
"Binding Offer") to develop the wells planned for SN-9's
wells, the Company's 311,353 acre project located in
the Lower Magdalena Basin of Colombia, which is a prolific hydrocarbon
producing region near the Caribbean coast. The Binding Offer has
been made under Colombian commercial legal regulations.
Under the Binding Offer, the companies will enter into a market
pricing-based preferred supply agreement for drilling and gas well
services activities for all phases of the SN-9. CPVEN has initially
committed to construct and complete four gas wells, including
mobilization, demobilization, engineering, drilling and completion,
for an aggregate cost of US$27.2
million, with each well projected to cost US$6.8 million, subject to adjustments for the
activities and volume realized at each well.
CPVEN has offered to finance the construction of the four wells,
with defined monthly installments for each based on the results of
the first well; NGX will be obliged to make a 25% down payment on
the cost of each well, with 10% made in advance of the commencement
of drilling and the remaining 15% paid 90 days after drilling is
commenced, with the remaining 75% paid in monthly installments, the
number of which vary with each well, after completion of the well.
NGX will be obligated to maintain a monthly balance of US$1 million to pay for CPVEN's services and
which will serve as a guarantee for such payment. This is done
under the economic interest the company has in the SN-9 block.
CPVEN is a multinational leader in gas and oil services that was
founded in 1981 and which is active in both exploration and
production. CPVEN has developed its own technology and has the
managerial and technical personnel capable of executing the most
complex operations, utilizing state-of-the-art infrastructure and
equipment design. CPVEN has operations in Colombia, Ecuador, the USA, Kuwait,
Peru and Venezuela and has extensive experience and
ability in well drilling and rehabilitation, as well as the
operation of well services.
The Company is also pleased to announce that FINRA has approved
a change in the Company's stock symbol trading on the OTC Markets
to GASXF.
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
successful completion of the Offering and the expected use of
proceeds, 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.