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New Stratus Energy Announces Acquisition of Partner Interest in Blocks 16 & 67
Calgary, Alberta--(Newsfile Corp. - September 8, 2022) - New Stratus Energy Inc. (TSXV: NSE) (...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces Acquisition of Partner Interest in Blocks 16 & 67Calgary, Alberta--(Newsfile Corp. - September 8, 2022) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\" or the \"Corporation\") is pleased to announce it has entered into an asset purchase agreement (the \"Agreement\") with one of the Corporation's working interest partners (the \"Vendor\") in Blocks 16 and 67 in Ecuador (the \"Blocks\") to acquire the Vendor's entire working interest in the Blocks. Pursuant to the Agreement, the Corporation will acquire an additional undivided 31% working interest (the \"Acquired Interest\") in the service contracts (the \"Service Contracts\") for the Blocks for total consideration of approximately US$1.2 million cash, subject to adjustment (the \"Transaction\"). Completion of the Transaction is subject to prior regulatory approvals, including authorization by the Ecuadorian Ministry of Energy and Mines and antitrust authorities. The Transaction, upon statutory sanctioning, will consolidate the Corporation's working interest in the Blocks, increasing from 35% to 66%. The Transaction will also substantially grow New Stratus' current production and cash flow while maintaining the Corporation's significant financial flexibility. Transaction HighlightsThe Acquired Interest has the following characteristics:Gross production as of September 1, 2022 was approximately 4,700 barrels of oil per day (bopd).1Proved developed producing reserves: 1.023 million barrels of oil.1(1) See \"Reserves Advisory\".Blocks 16 and 67Upon completion of the Transaction, the Corporation will hold a 66% operated working interest in the Service Contracts for the Blocks, which are located in the Orellana Province in the prolific Oriente Basin in Ecuador. The Blocks have a long history of production, with a total of 262 wells drilled, and excellent seismic coverage. This has contributed to substantial knowledge of the area's characteristics, properties, distribution of reservoirs, production mechanisms, and additional exploration opportunities. The Blocks are comprised of 9 fields, with total working interest production as at September 2, 2022 of approximately 15,159 bopd at an average gravity of 15.5° API. New Stratus gross production is expected to be approximately 10,000 bopd following completion of the Transaction.Existing infrastructu...