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New Stratus Energy Provides Update on Ecuador Assets and Announces Intention to Pursue International Arbitration
Calgary, Alberta--(Newsfile Corp. - December 5, 2022) - New Stratus Energy Inc. (TSXV: NSE) (" Ne...
About this update from New Stratus Energy Inc
[{"type":"text","content":"New Stratus Energy Provides Update on Ecuador Assets and Announces Intention to Pursue International ArbitrationCalgary, Alberta--(Newsfile Corp. - December 5, 2022) - New Stratus Energy Inc. (TSXV: NSE) (\"New Stratus\" or the \"Corporation\") announces that following a meeting in Quito, Ecuador among the Corporation and the President of Ecuador, Guillermo Lasso and his Minister of Energy, Fernando Santos, the Government of Ecuador (the \"Government\") informed the Corporation and its advisors that it does not intend to fulfill its legal and contractual obligation to appoint the required Negotiations Committee for the extension and migration of the contracts for Blocks 16 & 67. Therefore, the contracts for Blocks 16 & 67 will expire on December 31, 2022. As a direct result of the legal, political and other measures taken by the Government, the Corporation will be pursuing its legal and contractual rights through formal international arbitration.Having acted in good faith throughout 18 months of discussions with the Government, the Corporation is shocked by this sudden change of posture of the President, who in several previous meetings had welcomed and encouraged the Corporation's plans to pursue the contractual extensions. The President and Minister clearly indicated to the Corporation that this decision is politically motivated. As such the decision shall certainly discourage foreign direct investment in Ecuador given the Government's lawless interpretation of the contracts, a clear and blatant infringement of the rule-of-law.Corporate UpdatesThe Corporation expects to finish the calendar year with approximately CAD $0.30 per share in cash and short term receivables.The Corporation's working interest partners are being notified of this legal non-compliance by the Government.The Corporation will file a legal demand against the Government under International Arbitration. The Corporation commits to pursue its legal and contractual rights with minimal cash dilution to shareholders. The Corporation commits to be a steward of its remaining capital as it pursues new opportunities.The Corporation maintains a strategic alliance with Baker Hughes which, in the short term, will result in new business opportunities outside of Ecuador.We are deeply saddened to share this news with our trusted shareholders. The development of the r...