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NGX Energy Announces Binding Offer for Gas Drilling and Services to Develop SN-9
NGX Energy Announces Binding Offer for Gas Drilling and Services to Develop SN-9 ...
About this update from Ng Energy International Corp
[{"type":"text","content":"\n \n \n \n NGX Energy Announces Binding Offer for Gas Drilling and Services to Develop SN-9\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n VANCOUVER, BC, Nov. 4, 2020\n \n \n \n \n \n VANCOUVER, BC\n \n ,\n \n Nov. 4, 2020\n \n /CNW/ - NGX Energy International Corp. (formerly CruzSur Energy Corp.) (the \"\n \n Company\n \n \" or \"\n \n NGX\n \n \") (TSXV: GASX) (OTC: GASXF) is pleased to announce that it has received a binding commercial offer from CPVEN (the \"\n \n Binding Offer\n \n \") to develop the wells planned for SN-9's wells, the Company's 311,353 acre project located in the Lower Magdalena Basin of\n \n Colombia\n \n , which is a prolific hydrocarbon producing region near the\n \n Caribbean\n \n coast.  The Binding Offer has been made under Colombian commercial legal regulations.\n \n \n Under the Binding Offer, the companies will enter into a market pricing-based preferred supply agreement for drilling and gas well services activities for all phases of the SN-9. CPVEN has initially committed to construct and complete four gas wells, including mobilization, demobilization, engineering, drilling and completion, for an aggregate cost of\n \n US$27.2 million\n \n , with each well projected to cost\n \n US$6.8 million\n \n , subject to adjustments for the activities and volume realized at each well.\n \n \n CPVEN has offered to finance the construction of the four wells, with defined monthly installments for each based on the results of the first well; NGX will be obliged to make a 25% down payment on the cost of each well, with 10% made in advance of the commencement of drilling and the remaining 15% paid 90 days after drilling is commenced, with the remaining 75% paid in monthly installments, the number of which vary with each well, after completion of the well. NGX will be obligated to maintain a monthly balance of\n \n US$1 million\n \n to pay for CPVEN's services and which will serve as a guarantee for such payment. This is done under the economic interest the company has in the SN-9 block.\n \n \n CP...