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Update on Approval Process of Potential Upstream and Midstream Acquisition in Ecuador
(TheNewswire) Calgary, Alberta - TheNewswire - November 2, 2020 - New...
About this update from New Stratus Energy Inc
[{"type":"text","content":"Update on Approval Process of Potential Upstream and Midstream Acquisition in Ecuador\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n Calgary, Alberta -\n \n \n TheNewswire -\n \n \n November 2, 2020 - New Stratus Energy Inc.\n(TSXV:NSE)\n \n \n (\"\n \n \n New Stratus\n \n \n \" or\nthe \"\n \n \n Corporation\n \n \n \") provides an update on the\npotential transaction for the acquisition from certain affiliates of\nRepsol S.A (the \"\n \n \n Sellers\n \n \n \") of an indirect 35% operated\nworking interest in service contracts for Blocks 16 and 67 in Ecuador\n(the \"\n \n \n Blocks\n \n \n \") as well as an indirect 29.66% participation in\nOleoducto de Crudos Pesados Ecuador S.A. (the \"\n \n \n Potential Transaction\n \n \n \"), previously announced on October 20, 2020.\n \n \n \n \n On October 19, 2020, the Sellers and the Corporation\napplied for approval of the Potential Transaction before the\nEcuadorean Ministry of Energy and Non-Renewable Resources\n(\n \n \n Ministerio de Energia y\nRecursos Naturales No Renovables\n \n \n ) (the\n\"\n \n \n Ministry\n \n \n \") and on October 26, 2020, the Corporation filed a\nnotice of the Potential Transaction with the Ecuadorean Antitrust\nAuthority (\n \n \n Superintendencia\nde Control del Poder de Mercado\n \n \n ).\n \n \n \n \n On October 29, 2020, the Sellers were notified by the\nMinistry of its denial of the requested approval for the Potential\nTransaction on the basis that the application did not satisfy the\nrequirements of Decree 1363 on transfers of Hydrocarbons contracts\nsince, from the filed documents, as it could not confirm that with\nthe Potential Transaction there would not be \"a deterioration of\nthe financial solvency and operational capabilities of the\ncontractor\", which is the threshold for approval of transactions\nsuch as the Potential Transaction.\n \n \n \n \n Jose Francisco Arata, Chairman and Chief Executive\nOfficer, commented: \"we are disappointed at the denial of\napproval of the Potential Transaction by the Ministry. We believe that\nthe Potential Transaction meets the requirements of applicable\nregulations for approval by the Ministry since such transaction will\nnot alter any of the financial situation and operational capabilities\nof the contractor of the Blocks, which is a consortium where the\nSellers only hold a 35% working interest thr...