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PentaNova Energy provides an update on Llancanelo Asset
PentaNova Energy provides an update on Llancanelo Asset Canada NewsWire VANCOUVE...
About this update from Ng Energy International Corp
[{"type":"text","content":"\n\n\n\nPentaNova Energy provides an update on Llancanelo Asset\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, July 3, 2018\n\n\n\nVANCOUVER, July 3, 2018 /CNW/ - PentaNova Energy Corp. (the \"Company\" or \"PentaNova\") (TSXV: PNO), provides an update on the ongoing operations of the Llancanelo Asset with YPF S.A. (\"YPF\"), the operator of the concession.\n\nAs part of the various Argentina acquisitions completed by the Company in August and October 2017 relating to the Llancanelo heavy oil asset, the Company, through its wholly-owned subsidiary Alianza Petrolera Argentina SA (Alianza) initially acquired a 39% working interest in the Llancanelo block, and assumed cash call balances owed to YPF, and in November 2017, the Company farmed-in (the \"Farm-In\") to acquire an additional 11% working interest from YPF, subject to regulatory and administrative approvals and to the satisfaction of certain terms and conditions. \n\nThe Company has been attempting to negotiate a payment plan for cash call balances with YPF without success to date. The Company recently received formal notification from YPF (the \"Notification\") advising that, under the terms of the governing agreement of the Llancanelo joint venture project, oil production pertaining to the Company's participating interest in the concession will be retained by YPF, with sales of such oil production, net of operating costs, being credited towards PentaNova's outstanding cash call balances. Furthermore, the governing agreement of the Llancancelo joint venture states that a failure to pay the outstanding cash call balance may result in the defaulting party losing it's working interest. The Company is currently holding discussions with YPF in order to find a solution to retain the 39% working interest in addition to exploring financing options to cover the cash call balance. \n\nIn relation to the Farm-in agreement, Alianza has not been able to satisfy certain conditions precedent, including securing financing for its farm-in obligations and obtaining regulatory and administrative approva...