VANCOUVER, July 28, 2017 /CNW/ - PentaNova Energy Corp. (the
"Company") (TSXV: PNO), a new energy start-up with the goal
of becoming the leading heavy oil producer in Argentina, is pleased to announce that its
common shares will resume trading on the TSX Venture Exchange
effective at the open on Monday, July 31,
2017.
The Company continues to work towards closing of its acquisition
of Patagonia Oil Corp. and the concurrent financing, as detailed in
its news release dated July 24,
2017.
The acquisition of Patagonia Oil Corp. provides PentaNova with
an attractive footprint in Argentina, with a focus on heavy and light oil
projects. Patagonia will acquire the following assets at
closing:
- 39% interest in the Llancanelo heavy oil block, containing a
massive heavy oil resource, in the Mendoza province of Argentina, that produced an average of 1,360
bopd in June, 2017. The Company also has an option to farm in on an
additional 11% in the block. The Company plans to work with partner
state oil company YPF to scale the current production up and
complete a large-scale development on the field. The agreement with
YPF also provides certain preferential rights to negotiate on the
surrounding Llancanelo "R" block which is held 100% by YPF.
- 100% of the KM8 shallow light oil project in the Chubut
province. This field has been producing for over 100 years, and has
cumulative production over its life of over 38 million bbls.
- An 18% fully carried working interest in the Estancia La
Mariposa gas block in the center of the San Jorge basin in the
Santa Cruz province that generated
over US$1.5 million in revenue in
2016.
- An interest in the Sur Rio Deseado Este Block (54.14% of the
Production Block and 7.92% of the Exploration Block) on the
southern flank of the San Jorge Basin in the Santa Cruz Province. The fields are located in
a heavy oil rich province. The Company plans to carry out pilot
studies on the field to determine the optimal way to produce the
oil.
These acquisitions add to the portfolio of gas properties that
PentaNova previously acquired in Colombia:
- 80% interest in Maria Conchita,
a drill-ready gas development strategically located close to the
main producing infrastructure from the largest gas field in
Colombia, the Chuchupa-Ballena gas
complex. The Company plans to drill multiple wells in the field and
bring it on production over the next twelve months.
- 80% interest in Sinu-9, a highly prospective gas exploration
block adjacent to the highly productive Esperanza gas producing
area and very close the regional gas trunk line.
- 60% interest in Tiburon, a high-impact gas exploration project
on the north tip of the Guajira peninsula.
PentaNova is also pleased to announce that it has opened an
office in Buenos Aires to
coordinate operations in the country.
The management team of PentaNova has extensive Argentina and heavy oil experience.
Serafino Iacono, Chairman, has
extensive experience with heavy oil projects, most notably leading
Pacific Rubiales to develop the Rubiales heavy oil fields in
Colombia from a 9000 bopd to over
300,000 bopd.
Luciano Biondi, CEO, has
extensive experience with heavy oil operations in Venezuela and Colombia, having been instrumental in the
opening of the Faja heavy oil belt in Venezuela.
Gregg Vernon, President, was one
of the founders of PetroAndina, a Canadian publicly listed company
which was very successful in discovering and developing the 30,000
bopd El Corcobo heavy oil field project in the Mendoza province of
Argentina, taking the field from 0
to over 30,000 bopd in five years.
Warren Levy, President Argentina
Operations, was the founder of Estrella, an oilfield services
company which was headquartered in Buenos
Aires which he grew to have 2000 employees in 7 countries.
He has worked on heavy oil projects in Venezuela, Mexico, Argentina, Canada and Malaysia.
PentaNova has secured a unique and strategic asset portfolio in
Argentina, to complement the
previously announced gas assets in Colombia. These projects provide PentaNova
with short, medium and long-term growth opportunities.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the transaction described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's or
Patagonia's inability to satisfy a condition precedent to the
completion of the transaction (including obtaining necessary
regulatory approvals), other risks related to completion of the
transactions and risks related to the inability of either of the
Company or Patagonia to perform their respective obligations under
the transactions.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the transactions and Patagonia's ability to
complete the acquisition of the Assets. The Company has also
assumed that no significant events will occur outside of the
Company's normal course of business. Although the Company believes
that the assumptions inherent in the forward-looking information
are reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty
therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
SOURCE PentaNova Energy Corp.