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New Stratus Energy Announces Letter of Intent with the Waorani Nationality of Ecuador -NAWE-
Calgary, Alberta--(Newsfile Corp. - November 10, 2022) - New Stratus Energy Inc. (TSXV: NSE) (...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces Letter of Intent with the Waorani Nationality of Ecuador -NAWE-Calgary, Alberta--(Newsfile Corp. - November 10, 2022) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\" or the \"Corporation\") is pleased to announce it has entered into a letter of intent (the \"LOI\") with the Waorani Nationality of Ecuador -NAWE- (\"Waorani Nationality\"). The LOI signed between Petrolia Ecuador, New Stratus' Ecuadorian Subsidiary, outlines the terms and conditions for the extension, maintenance and enhancement of the agreement currently in place between the Corporation and the Waorani Nationality (the \"Waemo Kewingi Agreement\"), which outlines cooperation between the parties through annual operating plans, health, education, organizational support, project promotion and infrastructure support which is set to expire with the current service provision contract for Blocks 16 and 67 (\"Service Contract\") on December 31, 2022. The LOI maintains the current concept of cooperation with the Waorani Nationality subject to the extension and migration of the Service Contract to a Production Sharing Contract (\"Production Sharing Contract\"). In addition, the LOI contemplates the following enhanced items to the Waemo Kewingi Agreement:Extending the term of the Waemo Kewingi Agreement from 2023 to the extension term of the new Production Sharing Contract.Expanding the budget to approximately USD$1.2m to meet the most important needs of the community, focused on education, health and basic services.Allocation of 70% of the annual budget of the Annual Operating Plans for the communities of direct influence of the operation.Incorporating the term Participation in Dividends (\"Dividends\") which permits the Waorani Nationality to participate in the financial success of the Corporation, which will provide benefit to the community based on the implementation of projects related to education, health, production and infrastructure. This represents a disruptive change to the traditional oil sector business model in Ecuador. For the first time, New Stratus addresses the long overdue issue of truly and formally sharing the benefits of the business with the host indigenous Waorani Nationality.Completion of the LOI is subject to certain conditions including, but not limited to, the completion of definitive documentation, completion o...