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PentaNova Energy Corp. Announces Sinu-9 Strategic Farmout Terms in Colombia
PentaNova Energy Corp. Announces Sinu-9 Strategic Farmout Terms in Colombia Canada...
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[{"type":"text","content":"\n\n\n\nPentaNova Energy Corp. Announces Sinu-9 Strategic Farmout Terms in Colombia\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\nCanada NewsWire\nVANCOUVER, Sept. 28, 2017\n\n\n\nVANCOUVER, Sept. 28, 2017 /CNW/ - PentaNova Energy Corp. (the \"Company\") (TSXV: PNO), is pleased to announce that it has agreed to the terms of a Farm-out Agreement on the Sinu-9 block in the Lower Magdalena Valley Basin.\n\nPentaNova and American Oil and Gas (\"AOG\") have entered into a Letter of Intent outlining the terms and conditions for the Farm-in by AOG on PentaNova´s private interest held in the Sinu-9 block (313,639 gross acres), located in the Cordoba Province in the Lower Magdalena Valley Basin of Colombia. To complete the agreement, AOG will Farm-in for half of the Company´s 80% beneficial working interest, by way of replacing the US$ 2.4 million guarantee required by the ANH license, as well as funding 100% of the Phase I minimum exploration work program under the ANH contract, equivalent to US$ 22 million. PentaNova shall reimburse 50% of the funds invested by AOG in the Phase I activities from 70% of PentaNova´s net production. Further capital commitments will be assumed proportionally by the partners. The remaining working interest on the block is held 15% by Desarrolladora Oleum and 5% by Clean Energy.\n\nThis strategic arrangement permits PentaNova and its partners to accelerate development of the low-risk exploratory gas block that shows 18,000 acres of structural closure mapped with 2D seismic, and defined \"in-situ\" gas accumulations. Seismic analysis and adjacency to Canacol´s Esperanza block with proven reserves provide strong evidence for large gas potential on Sinu-9. The parties will begin technical work to define the capital program implementation.\n\nThe block is located 75km from the export terminal of Coveñas and approximately 14km from the Northern gas trunk line, with scheduled spare capacity. This allows significant optionality for the partners to negotiate final gas marketing arrangements.\n\nAbout PentaNova Energy Corp. \...