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New Stratus Energy Announces Significant Acquisition in Venezuela and Corporate Update
Calgary, Alberta--(Newsfile Corp. - January 2, 2024) - New Stratus Energy Inc. (TSXV: NSE) ("New ...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Announces Significant Acquisition in Venezuela and Corporate UpdateCalgary, Alberta--(Newsfile Corp. - January 2, 2024) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\", \"NSE\" or the \"Corporation\") is pleased to announce the closing of the acquisition (the \"Acquisition\") of a 50% indirect interest in GoldPillar International Fund SPC Ltd. (\"GoldPillar\"), a private entity organized and existing under laws of the British Virgin Islands, which has acquired a 40% equity participation (the \"Equity Subscription\") in a joint venture company, Petrolera Vencupet, S.A. (\"Vencupet\"), which holds the oil production rights for the fields named \"Adas\", \"Lido\", \"Limon\", \"Leona\", \"Oficina Norte\" and \"Oficina Central\", all located onshore in the Anzoategui and Monagas States in Eastern Venezuela (the \"Fields\"). Petroleos de Venezuela S.A. (\"PDVSA\"), the Venezuelan national oil company, through its subsidiary Corporacion Venezolana de Petroleo S.A. (\"CVP\"), owns the remaining 60% of the share capital of Vencupet. As consideration for the Acquisition, New Stratus will be making a significant capital investment to complete a reactivation program for up to 246 wells in the Fields, by way of a six-month €60 million (US$65.8 million) revolving line of credit to Vencupet through GoldPillar, as described in further detail below. Factoring repayments from the sale of oil and products under the financing agreement, New Stratus expects that its indirect maximum capital exposure under the facility at any point in time will be approximately US$25 million.As consideration for securing and presenting this opportunity to New Stratus, a finder's fee (\"Finder's Fee\") is payable to Mr. Franco Favilla (\"Favilla\"), an Italian national and formerly the beneficial owner of 100% of the share capital of GoldPillar, in the amount of US$8.5 million, with US$4 million paid at closing and US$4.5 million payable in installments over 24 months from closing.Acquisition HighlightsFields: 794.2 km2 onshore VenezuelaTerm: initial term ending in December of 2035; will apply for an extension until 2050Credit Facility: GoldPillar will provide a six-month €60 million revolving line of credit to Vencupet for a total period of four and a half years; indirect maximum capital exposure of NSE under the facility at an...