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New Stratus Energy Announces LOI with Baker Hughes
Calgary, Alberta--(Newsfile Corp. - May 20, 2022) - New Stratus Energy Inc. (TSXV: NSE) (" New...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces LOI with Baker HughesCalgary, Alberta--(Newsfile Corp. - May 20, 2022) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\" or the \"Corporation\") is pleased to announce the execution of a letter of intent (the \"LOI\") with Baker Hughes Services International, S.A.S. (\"Baker Hughes\"), an energy technology company with a global presence, including in Ecuador. As previously disclosed on November 19, 2021, New Stratus, through Petrolia Ecuador S.A. (former Repsol Ecuador S.A.), as operator, intends to invest approximately $200 million in 2022 and 2023 to drill/recomplete development wells on Blocks 16 and 67 in Ecuador (the \"Blocks\") following the completion of negotiations with the Government of Ecuador to extend rights to the Blocks through a production sharing contract. The LOI will formalize New Stratus' and Baker Hughes' ongoing negotiations of one or more agreements governing the proposed strategic relationship with respect to the drilling program and the development of the Blocks 16 and 67 and other potential projects in the Eastern Basin of Ecuador.Pursuant to the terms of the LOI, New Stratus and Baker Hughes will potentially enter into a preferred supplier agreement (the \"Preferred Supplier Agreement\") and a technical services agreement (the \"Technical Services Agreement\"). The terms of the potential Preferred Supplier Agreement may include the provision of services not limited to drilling, completion, intervention, abandonment of wells, and artificial lift systems from Baker Hughes to New Stratus. The terms of the Technical Services Agreement may include the technical evaluation of the reservoir, technical services and engineering support for drilling and workover development campaign to New Stratus.The completion of the transactions and matters contemplated in the LOI remains subject to New Stratus and Baker Hughes entering into definitive agreements and signatures of the Preferred Supplier Agreement and/or Technical Services Agreement; and the approval of all internal and potentially external regulatory authorities that may apply.Contact Information:Mr. Jose Francisco ArataChief Executive [email protected]. Wade [email protected]. Mario MirandaChief Financial [email protected] InformationCertain informati...