Page 14 - LatAmOil Week 43 2022

LatAmOil NEWS IN BRIEF LatAmOil

the Vendor such that the Corporation will indi-
rectly acquire the final undivided 20% working
interest in the service contracts for the Blocks.
The Transaction follows the Corporation’s other
recently announced consolidation transactions
with its two other working interest partners in
the Blocks.
Pursuant to the Consolidation Transactions,
the Corporation will fully consolidate its work-
ing interest in the Blocks, increasing to 100%,
upon statutory sanctioning of the Consolidation
Transactions.
The total consideration for the Transaction
will be approximately $9.31mn cash, subject to
adjustment, which total consideration is com-
prised of the following amounts: a base purchase
price of $0.25mn; an estimated carryforward
recovery payment of $0.42mn; and an estimated
working capital adjustment of approximately
$8.64mn.
Completion of the Consolidation Transac-
Under the terms of the agreement SETCO will (Alberta). tions is subject to prior regulatory approvals,
be responsible for paying 100% of the cost of Any authority of the Board to consolidate the including authorisation by the Ecuadorean
building the pipeline and will own, operate and shares is conditional upon the prior approval of Ministry of Energy and Mines and antitrust
maintain the pipeline. The Corporation will not the Corporation’s shareholders and the Toronto authorities. The Consolidation Transactions will
own or pay any part of the costs associated with Stock Exchange. Additional information, increase New Stratus’ current production and
the pipeline project, including its construction including the time and instructions for virtually cash flow while maintaining the Corporation’s
or operation. The Corporation’s sole commit- accessing and voting at the Special Meeting will financial flexibility.
ment under the agreement is limited to the exe- be provided at a later date. Further, a Manage- Transaction Highlights. The Acquired Inter-
cution of a transportation agreement whereby ment Information Circular for the upcoming est has the following characteristics: Gross
the Corporation will pay a fixed fee for a certain Special Meeting will be available to shareholders production as of September 1, 2022 was approx-
volume of gas over a certain period of time. The and filed by the Corporation on SEDAR. imately 3,032 barrels of oil per day (bpd of oil).
Corporation has already executed two 12-year About Canacol: Canacol is a natural gas Proved developed producing reserves: 0.660mn
take-or-pay gas sales contracts for a total volume exploration and production company with barrels of oil.
of 75 mcf per day going to Medellin through the operations focused in Colombia. The Corpora- Blocks 16 and 67: Upon completion of the
pipeline and is currently negotiating additional tion’s common stock trades on the Toronto Stock Consolidation Transactions, the Corporation
long term take-or-pay gas sales contracts with Exchange, the OTCQX in the United States of will hold a 100% operated working interest in
customers in the interior to ensure that the new America and the Colombia Stock Exchange the Service Contracts for the Blocks, which are
pipeline is filled to initial capacity of 100 mcf per under ticker symbol CNE, CNNEF and CNEC, located in the Orellana Province in the prolific
day. The pipeline is scheduled to enter operation respectively. Oriente Basin in Ecuador. The Blocks have a long
in December 2024. The Corporation currently Canacol Energy, October 24 2022 history of production, with a total of 262 wells
has a productive capacity of approximately 250 drilled, and excellent seismic coverage. This
mcf per day and anticipates increasing produc- has contributed to substantial knowledge of the
tive capacity to over 300 mcf per day via the INVESTMENT area’s characteristics, properties, distribution of
drilling of additional wells and the execution of reservoirs, production mechanisms and addi-
additional infrastructure prior to the pipeline New Stratus Energy tional exploration opportunities.
entering service. The Blocks are comprised of 9 fields, with
The Corporation is also pleased to announce announces consolidation total working interest production as at Septem-
it will hold a Special Meeting of Shareholders on ber 2, 2022 of approximately 15,159 bpd of oil at
December 19, 2022. The Corporation has set the of final partner interest in an average gravity of 15.5 degrees API.
Record Date for the Special Meeting on Novem- Existing infrastructure includes two oil and
ber 18, 2022. Blocks 16 and 67 water processing centers with a capacity of
The purpose of the Special Meeting is to seek 75,000 bpd of oil and 900,000 bpd of water, with
authorisation from the Corporation’s share- New Stratus Energy Inc. is pleased to announce all the water production being reinjected into 30
holders to enable the Board of Directors to it has entered into a share purchase agreement wells. Additional area infrastructure includes
consider a consolidation of the Corporation’s with the Corporation’s third and final working electricity generation plants and a topping plant
issued and outstanding common shares at a interest partner in Blocks 16 and 67 in Ecuador which produces diesel used to power operations.
ratio of up to one post-consolidation share for to acquire the Vendor’s entire working inter- The oil produced in the fields is moved by
every five pre-consolidation shares. The Cor- est in the Blocks, held by the Vendor’s wholly a 16-inch pipeline to Lago Agrio, where it is
poration’s Board will also present some routine owned subsidiary. Pursuant to the Agreement, loaded into the Oleoducto de Crudos Pesados
amendments to its by-laws to match the recent the Corporation will acquire all of the issued and Ecuador SA pipeline and transported to a port
amendments to the Business Corporations Act outstanding common shares of the Target from on the Pacific Ocean.

P14 www. NEWSBASE .com Week 43 26•October•2022