Business
New Stratus Energy Completes Acquisition of Shares of Repsol Ecuador S.A. from Affiliates of Repsol S.A.
Calgary, Alberta--(Newsfile Corp. - January 14, 2022) - New Stratus Energy Inc. (TSXV: NSE) ("...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Completes Acquisition of Shares of Repsol Ecuador S.A. from Affiliates of Repsol S.A.Calgary, Alberta--(Newsfile Corp. - January 14, 2022) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\" or the \"Corporation\") is pleased to announce that further to its news release dated October 20, 2020 (link), it has closed the previously disclosed transaction with affiliates of Repsol S.A. (the \"Sellers\") for the transfer of the shares (\"Shares\") of Repsol Ecuador S.A. to New Stratus (the \"Transaction\") on terms equivalent to those previously disclosed. The Corporation now holds an indirect 35% operated working interest in service contracts (the \"Service Contracts\") for Blocks 16 and 67 in Ecuador (the \"Blocks\") and Repsol Ecuador S.A., now a wholly-owned subsidiary of New Stratus, remains the operator of the Blocks. Transaction Highlights:Gross production as of January 5, 2022 on the Blocks was 14,306 barrels of oil per day (bopd) (5,007 bopd net).Gross proved plus probable reserves of 4.506 million barrels of oil (1.577 million barrels of oil net).[1] In accordance with the COGE (Canadian Oil and Gas Evaluation) handbook reserves can be booked only to the end of the term of the current service contract which expires in December 2022 rather than the remaining economic life of the Blocks. Significant production potential remains in the Blocks and the Corporation has previously announced plans to spend approximately US$200 million in 2022 and 2023 to drill approximately 30 development wells, following the completion of negotiations with the Government of Ecuador to extend rights to the Blocks through a production sharing contract. Upon the extension of rights to the Blocks, a new reserve report will be commissioned that will reflect reserves to the end of the newly negotiated contract.In conjunction with the closing of the transaction, New Stratus is pleased to announce that Mr. Ramiro Paez, Director of the Ecuador Business Unit for Repsol has agreed to join New Stratus in the same role. Mr. Paez is a mechanical engineer and has over 40 years of international oil & gas experience in Indonesia, Spain, Libya, Venezuela and then recently with Repsol in Ecuador. Mr. Paez will be a fundamental figure in New Stratus' continued development in Ecuador.[1] See Reserves Advisory, below.Blocks 16 and 67The Co...