VANCOUVER, 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.
PentaNova 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.
This 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.
The 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.
About PentaNova Energy Corp.
PentaNova Energy Corp. is a publicly traded E&P company
focused on proven oil & gas plays in Latin America. The Company holds a large
diversified portfolio of unexploited assets in Colombia and Argentina where it will leverage its amplitude
of technical expertise and proven track record building companies
and creating value.
About American Oil and Gas
American Oil & Gas Inc. is an exploration and production
company with headquarters in Houston, Texas. Our focus is to acquire
and develop oil and gas assets in the Andean region. The
Company is led by a top-tier management team with a history of
building and operating world-class assets.
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 operations 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 inability to
perform the proposed operations.
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 planned operations and activities. 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.
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.
SOURCE PentaNova Energy Corp.