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New Stratus Energy Announces Award of a Transformative Production Sharing Contract for a Significant Oil Field in Ecuador, Funding and Offtake Agreement, and Concurrent Offerings
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About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces Award of a Transformative Production Sharing Contract for a Significant Oil Field in Ecuador, Funding and Offtake Agreement, and Concurrent Offerings\n\n\n\n\n\n NOT\n \n\n\n\n FOR\n \n\n\n\n DISTRIBUTION\n \n\n\n\n TO\n \n\n\n\n UNITED\n \n\n\n\n STATES\n \n\n\n\n NEWSWIRE\n \n\n\n\n SERVICES\n \n\n\n\n OR\n \n\n\n\n FOR\n \n\n\n\n DISSEMINATION\n \n\n\n\n IN\n \n\n\n\n THE\n \n\n\n\n UNITED\n \n\n\n\n STATES\n \n\n\n\n CALGARY, Alberta, March 03, 2025 (GLOBE NEWSWIRE) -- New Stratus Energy Inc. (TSX.V - NSE) (“New Stratus”, “NSE” or the “Corporation”) is pleased to announce that a consortium formed by subsidiaries of Sinopec International Petroleum E&P Corporation (60%) (“Sinopec”) and New Stratus (40%) (the “Consortium”) has reached an agreement for an award by the Ministry of Energy and Mines of Ecuador (“MEM”) of a 20-year (renewable) production sharing contract (the “PSC”) for crude oil production and additional exploration relating to Block 60 in Ecuador, also known as the “Sacha Block”, for an upfront cash entry bonus of US$1.5 billion (US$600 million payable by NSE). Formal execution of the PSC (“PSC Execution”) by the Consortium and MEM is expected to occur in March 2025 and upon which the Corporation will acquire a 40% interest (the “Acquired Interest”) in the Sacha Block.\n \n\n\n Highlights:\n \n\n\n\n Average production in 2024 for the Sacha Block was approximately 77,191 barrels per day (bbl/d) of medium oil (25 degrees API gravity). Average gross production\n \n (1)\n \n in 2024 attributable to the Acquired Interest was approximately 30,876 bbl/d, implying US$19,433 per flowing barrel.\n \n\n The average prices for WTI and Oriente Blend in December 2024 were US$70.12 and US$64.11, respectively. Currently, production from the Sacha Block receives a positive quality adjustment over Oriente Blend pricing of approximately US$2.50. Accordingly, using average production for December 2024 of 73,711 bbl/d, gross revenue\n \n (2)\n \n for the month of December 2024 attributable to the Acquired Interest was approximately US$60.9 million (approximately C$87.7 million).\n \n\n As at December 31, 2024, proved developed producing (“PDP”) gross...