VANCOUVER, Sept. 20, 2017
/CNW/ - PentaNova Energy Corp. (the "Company") (TSXV: PNO),
is pleased to announce that it has signed contracts for the civil
works and drilling rig to be deployed to the Company´s 60,076 gross
acre Maria Conchita block in the Guajira Basin of Colombia.
Maria Conchita
Drilling
PentaNova has signed the contract for the civil works required
to begin operations and the drilling rig contract for its natural
gas development on the Maria Conchita block, in northern
Colombia, where it holds an 80%
beneficial working interest. The Company plans to complete the
civil work in approximately six weeks, and PentaNova will spud the
first of two wells to be drilled back-to-back starting in November.
The Company has also received an offer for the construction and
financing of the pipeline required to transport the Maria Conchita
gas to market. The strategic location of the block, close to both
national gas trunk lines in Colombia, permits the Company significant
optionality to negotiate the ultimate market for its gas.
New Credit Facility
PentaNova has received an offer for a senior credit facility
with a Tier-1 international financial institution. The Company
anticipates entering into a term loan facility for an initial
principal amount of approximately US$ 20
million in the near term. The new credit facility will be
used to fund capital programs in both Argentina and Colombia and complete the Argentine
acquisition commitments made under the Patagonia Oil Corp.
acquisition.
Argentine Operations
PentaNova has taken full control of the operations of Alianza
Petrolera S.A. ("Alianza"), as part of the Patgonia Oil Corp.
acquisition previously announced in the Company´s press releases
dated August 9, July 24, and
May 3, 2017. The Company has
established its office in Buenos
Aires and consolidated its administrative and operating team
in-country.
Through the acquisition of Alianza, the Company acquired a 29%
working interest in the Llancanelo heavy oil block, located in the
Neuquén basin, in partnership with Argentine state oil company YPF
and an 18% fully carried working interest in the Mariposa producing
gas block located in the San Jorge basin. PentaNova also acquired
an additional 10% working interest in Llancanelo for a total of 39%
working interest and is actively engaged with YPF in technical
discussions regarding the optimal manner to proceed with
development of heavy oil resources on the block.
Through its interest in the Mariposa gas production concession,
the Company receives 18% of the gas and condensate sales, while the
operator covers 100% of the operating and capital expenditure
commitments. In August 2017, this 18%
represented net production of 921,562.00 m3 of gas, generating over
US$ 200,000 in revenue to PentaNova,
with no expenditures on the block.
Additionally, the Company, through Allianza, realized net WI
sales of crude oil in the month of August of 11,285 bbls associated
with the 29% working interest in the Llancanelo block, resulting in
revenues to PentaNova of $566,000
USD. PentaNova is completing the operational review of the
KM8 project, where it has a 100% operating interest, including a
full environmental baseline study. Planning is advancing well for
the full reactivation of the field which will include workovers,
and a drilling program.
PentaNova is engaged in discussions with a number of prominent
service companies in Argentina on
options to accelerate the work programs in the country.
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.
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 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.
SOURCE PentaNova Energy Corp.