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CORRECTION FROM SOURCE: New Stratus Energy Announces Ecuadorian Regulatory Approvals for the Transfer of the Shares of Repsol Ecuador S.A.
Certain clarifications have been made at the request of IIROC and the TSXV. Calgary, Albert...
About this update from New Stratus Energy Inc
[{"type":"text","content":"CORRECTION FROM SOURCE: New Stratus Energy Announces Ecuadorian Regulatory Approvals for the Transfer of the Shares of Repsol Ecuador S.A.Certain clarifications have been made at the request of IIROC and the TSXV.Calgary, Alberta--(Newsfile Corp. - November 19, 2021) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\" or the \"Corporation\") is pleased to announce that, further to its news release dated October 20, 2020 (link), it has received the approvals by the Ministry of Energy and Non-Renewable Natural Resources of Ecuador and the Ecuadorian Antitrust Authority (Superintendencia de Control del Poder de Mercado) for the transfer of the shares (\"Shares\") of Repsol Ecuador S.A. to New Stratus (the \"Transaction\"). The Corporation has been formally notified of such approvals.Upon completion of the Transaction, the Corporation will hold an indirect 35% operated working interest in service contracts (the \"Service Contracts\") for Blocks 16 and 67 in Ecuador (the \"Blocks\") and Repsol Ecuador S.A. will remain the operator of the Blocks. Gross production in October 2021 on the Blocks was 15,617 barrels of oil per day (5,466 net to the sellers).New Stratus, through Repsol Ecuador S.A. as operator, intends to invest approximately US$200 million in 2022 and 2023 to drill development wells on the Blocks following the completion of the Transaction and the completion of negotiations with the Government of Ecuador to extend rights to the Blocks through a production sharing contract. In keeping with its minimum carbon footprint policy, New Stratus will drill these wells from existing, environmentally licensed, well pads. This capital expenditure program will be financed primarily by cash flow and a debt facility being finalized with the Corporation's financial partners.The transfer of the Shares does not imply any change in the legal entity of Repsol Ecuador S.A., other than the beneficial ownership of the Shares. Furthermore, the Transaction will not alter or affect any of the labour rights of the employees of Repsol Ecuador S.A. who will continue with no change to their rights. New Stratus is committed to maintaining stability for all employees of Repsol Ecuador S.A. in accordance with the contractual commitments it will assume once the Transaction is completed.Additionally, New Stratus is committed to continue supporting the co...