Business
New Stratus Energy Announces Agreement to Acquire Production & Significant Development Opportunity in Mexico
Calgary, Alberta--(Newsfile Corp. - May 14, 2024) - New Stratus Energy Inc. (TSXV: NSE) ("New Str...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces Agreement to Acquire Production & Significant Development Opportunity in MexicoCalgary, Alberta--(Newsfile Corp. - May 14, 2024) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\", \"NSE\" or the \"Corporation\") is pleased to announce it has entered into definitive agreements (the \"Definitive Agreements\") with an arm's-length vendor (the \"Vendor\") for the acquisition of an initial 49% equity interest in Operaciones Petroleras Soledad S. de R.L. de C.V. (\"OPS\"), a private Mexican oil & gas company, with the exclusive right for NSE to negotiate the purchase up to an additional 41% of the equity interest in OPS, as described in further detail below (the \"Acquisition\"). OPS is the third-party contractor and operator of a hydrocarbons production contract awarded by Pemex Exploracion y Produccion, S.A. de C.V. (\"PEP\"), a subsidiary of Petroleos Mexicanos the Mexican national oil company, on the Soledad block (\"Soledad Block\") located in the State of Veracruz in eastern Mexico (the \"O&G Contract\").Soledad Block Acquisition HighlightsSoledad Block: 124 km2 onshore eastern MexicoTerm: Initial term ending in July of 2039; will apply for a ten year extensionPurchase Price: US$2 million for the initial 49% trancheEffective Date: Effective May 1, 2024, NSE is entitled to the economic interests, including production and cash flows therefrom, of being a 49% equity interest holder in OPSCommitment: NSE has agreed to fund capital expenditure requirements under the O&G Contract; maximum capital exposure of NSE under the facility at any point in time will be approximately US$12.5 millionProject Reserves(1): Soledad Block proved reserves are estimated at 43.3 million barrels of oil equivalent (mmboe)Production(2): Soledad Block gross production is approximately 1,430 barrels of oil equivalent per day (boe/d)Second Tranche ROFR: NSE will have a ROFR to negotiate the second tranche of the AcquisitionNotes:(1) See Oil and Gas Advisory, below.(2) See Oil and Gas Advisory, below.AcquisitionThe Acquisition has been structured into two tranches. The first tranche involves the purchase by NSE of an initial 49% equity interest in OPS. As consideration for the first tranche of the Acquisition, NSE will (i) pay the vendor a fixed amount of US$2 million at closing; (ii) fund the capital commitments an...