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New Stratus Energy Announces Consolidation of Final Partner Interest in Blocks 16 & 67
Calgary, Alberta--(Newsfile Corp. - October 24, 2022) - New Stratus Energy Inc. (TSXV: NSE) ("...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces Consolidation of Final Partner Interest in Blocks 16 & 67Calgary, Alberta--(Newsfile Corp. - October 24, 2022) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\" or the \"Corporation\") is pleased to announce it has entered into a share purchase agreement (the \"Agreement\") with the Corporation's third and final working interest partner (the \"Vendor\") in Blocks 16 and 67 in Ecuador (the \"Blocks\") to acquire the Vendor's entire working interest in the Blocks, held by the Vendor's wholly owned subsidiary (the \"Target\"). Pursuant to the Agreement, the Corporation will acquire all of the issued and outstanding common shares of the Target from the Vendor such that the Corporation will indirectly acquire the final undivided 20% working interest (the \"Acquired Interest\") in the service contracts (the \"Service Contracts\") for the Blocks (the \"Transaction\"). The Transaction follows the Corporation's other recently announced consolidation transactions (collectively, and together with the Transaction, the \"Consolidation Transactions\") with its two other working interest partners in the Blocks. Pursuant to the Consolidation Transactions, the Corporation will fully consolidate its working interest in the Blocks, increasing to 100%, upon statutory sanctioning of the Consolidation Transactions.The total consideration for the Transaction will be approximately US$9.31 million cash, subject to adjustment, which total consideration is comprised of the following amounts:a base purchase price of US$0.25 million;an estimated carryforward recovery payment of US$0.42 million; andan estimated working capital adjustment of approximately US$8.64 million.Completion of the Consolidation Transactions is subject to prior regulatory approvals, including authorization by the Ecuadorian Ministry of Energy and Mines and antitrust authorities. The Consolidation Transactions will increase New Stratus' current production and cash flow while maintaining the Corporation's financial flexibility. Transaction HighlightsThe Acquired Interest has the following characteristics:Gross production as of September 1, 2022 was approximately 3,032 barrels of oil per day (bopd).1Proved developed producing reserves: 0.660 million barrels of oil.1(1) See \"Reserves Advisory\".Blocks 16 and 67Upon completion of the Consolidation Transact...