VANCOUVER, Sept. 3, 2019 /CNW/ - CruzSur Energy Corp. (the
"Company" or "CruzSur") (TSXV: CZR), announces
it has appointed Ronald Pantin as
Executive Chairman of the Company and has signed a Memorandum of
Understanding with Panacol Oil & Gas Corp. ("Panacol")
to jointly develop assets of CruzSur in Colombia and Argentina. Initially, Panacol will emphasize
its efforts on the E&P Contract for the Sinu 9 (SN-9) Block.
Ronald Pantin was the Chief
Executive Officer and Executive Director of Pacific Exploration
& Production, the prime independent oil company in Latin America, until November 2016.
Mr. Pantin worked in the Venezuelan oil industry for
twenty-three years where he held numerous top level positions at
Petróleos de Venezuela (PDVSA),
including President of Corporacion Venezolana del Petroleo,
President of PDVSA Exploration and President of PDVSA
Servicios.
The agreement details are as follows:
- Panacol will be responsible for the project management of the
activities carried out by CruzSur in its different blocks located
in Colombia and Argentina following the guidelines of the
Board of Directors of CruzSur.
- Specifically with SN-9 E&P Contract:
-
- Panacol will capitalize US$2.4
million contributed by Flamingo Oil S.A.
- Procure all the activities necessary to obtain the required
licenses, amend the obligations of the contract, operate the SN-9
Block, negotiate and finalize the JOA with Cleanenergy Resources
SAS.
- Panacol is responsible to negotiate with petroleum services
providers who will be in charge of performing the required seismic,
roads/infrastructure and drilling services estimated at
US$22 million.
Both Panacol and Flamingo Oil S.A. will receive 2,800,000 shares
each, and Landsons Investment Corporation will receive 1,200,000
shares for obtaining the Environmental & Social Licenses and
related services.
Petroleum service providers will receive an estimate of
US$22 million as follows:
US$12 million as a non-recourse
vendor financing to be paid out 50% of CruzSur's production share
in the SN-9 Block (50% of 72% = 36%) and US$10 million by another service provider that
will be negotiated at an operating tariff.
Additionally, in Argentina,
CruzSur reached an agreement with Compañía Argentina de Comodoro Rivadavia Explotación de
Petróleo – CACR and resolved the liabilities regarding KM 8 as
follows:
- Patagonia Oil Corp. sold and transferred its participation in
San Jorge Oil Inc, (which represented 100% of the shares of the
company) to Topland Industrial Ltd. The selling price is
US$100,000 which was paid by the
buyer by his acceptance and assumption of all the debts and
liabilities of CRI Holding Inc. Sucursal Argentina, the Argentinean
branch of the Company.
- As of August 16th, a bilateral
rescission of the Purchase and Sale Offer of February 2, 2017 between CACR and Frontier
Hydrocarbons Ltd., which rights and obligations were later yielded
to Alianza Petrolera Argentina S.A. was reached, regarding property
on lands located in the province of Chubut, and wells "Sol de
Mayo", "San Jorge", "German Burmeister" and "George Stephenson",
("the Wells") as well as equipment and installations located on
such grounds. With this agreement, CACR will withdraw all legal
action processed against Alianza Petrolera and that is currently
ongoing before the Civil and Commercial Court No.2 of Comodoro
Rivadavia.
- Following this rescission, the Company received a 10%
overriding royalty of production of the Wells for a period of 10
years, and where Patagonia Oil Corp. granted a purchase option to
CACR on this royalty for an exercise period of one (1) year for
US$100,000. The overriding royalty
will be effective as of January 1,
2020 and will be calculated over 100% of production of the
Wells, which are currently active.
Serafino Iacono, CruzSur CEO
commented: "We are pleased to announce these two agreements
which will allow the company to focus on our exploration and
production opportunities. CruzSur looks forward to working together
with Panacol to successfully operate blocks in Argentina and Colombia which we are confident, have
tremendous potential."
Ronald Pantin also stated,"We
are very pleased with this agreement. The company's focus in
Colombia will be in the
development of its large base of natural gas resources, taking
advantage of the high price environment, due to the steep decline
of traditional sources of natural gas in the region. In
Argentina, the target is to
develop the important resources of low sulfur heavy oil that the
Company has and where management have proven
expertise."
About CruzSur Energy Corp.
CruzSur Energy Corp. is a publicly traded E&P company
focused on proven oil & gas plays in Latin America. The Company holds a large
diversified portfolio of producing, development and unexploited
assets in Colombia and
Argentina where it will leverage
its amplitude of technical expertise and proven track record
building companies and creating value.
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.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
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 CruzSur Energy Corp.