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New Stratus Energy Announces MOU with PDVSA Qualified Private Company
Calgary, Alberta--(Newsfile Corp. - August 2, 2023) - New Stratus Energy Inc. (TSXV: NSE) ("New S...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces MOU with PDVSA Qualified Private CompanyCalgary, Alberta--(Newsfile Corp. - August 2, 2023) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\", \"NSE\" or the \"Corporation\") announces the signing of a MOU with GoldPillar International Fund SPC Ltd. (\"GoldPillar\"), a private entity organized and existing under the laws of the British Virgin Islands and which is in negotiations with Petroleos de Venezuela S.A. (\"PDVSA\"), the Venezuelan national oil company, to partner in mixed companies to develop oil and gas assets in Venezuela.New Stratus will beneficially hold a 50% equity interest in GoldPillar which will in turn hold operatorship and equity positions in mixed companies (joint venture companies) with PDVSA ranging from 40% to 49.99%, although the intent will be to pursue majority equity positions through ongoing negotiations with PDVSA and as applicable regulations may allow. Under the arrangement with PDVSA, GoldPillar will advance the cash required to fund capital expenditures and operating expenses of the relevant mixed companies under the terms of business plans approved jointly with the Venezuelan authorities for each mixed company. Those advances will be reimbursed to GoldPillar through the mechanisms of assignment of volumes of crude oil and products specifically detailed in each mixed company joint venture agreement. Any funds to be advanced by GoldPillar to the relevant mixed company will be provided by NSE as shareholder financing to GoldPillar and such financing will be repaid to NSE prior to the distribution of any dividends to the shareholders of GoldPillar.Finally, all proceeds of sales of crude and products on volumes approved by PDVSA, managed and attributable to GoldPillar will be used to reimburse capital expenditures and operational costs, as well as to pay dividends to shareholders of GoldPillar. INITIAL JOINT VENTURE COMPANYThe first joint venture between PDVSA and GoldPillar, through an existing mixed company, consists of 4 on-shore fields located in the prolific Eastern Basin of Venezuela. The fields have produced almost 600 million boe since production began in 1959 and produced at a maximum rate of 60,000 boepd in 1960. Due to infrastructure erosion and lack of capital investment, production since 2017 has been minimal.The current business case of these fields cal...