MONTREAL, Jan. 23 /CNW Telbec/ - PEBERCAN INC. (The "Company"), (TSX:
PBC) Pebercan announces that Cuban authorities, through Cubapetroleo S.A.
("Cupet"), have notified its subsidiary Peberco Limited that Cupet wishes to
prematurely terminate the production sharing contract, entered into in 1993
and scheduled to expire in 2018.
In light of this early termination of the production sharing contract and
settlement of debts owed to Peberco for the sale of crude oil and in
consideration of Cupet assuming all of Peberco's obligations relating to its
activities in Cuba, Peberco will receive a total net lump sum payment of 140M
As well, and given the relationship between Peberco et Sherritt
International (Cuba) Oil and Gas, the latter will receive its portion of the
lump sum, equivalent to approximately 60M USD$.
Peberco and Cupet have entered into an agreement that provides for the
transfer by Peberco of all of its rights to the benefit of Cupet, conditional
to the acknowledgement of receipt by Peberco of the lump sum payment. The
agreement stipulates that Cupet will assume all of Peberco's rights and
obligations, including taking charge of any Cuban personnel and assets
required for oil and gas production, thereby discharging Peberco.
The agreement provides that the transfer and acknowledgement of the lump
sum payment will be completed by mid February 2009. The company will recognize
the depreciation of its assets in its first quarter financials of 2009.
Pebercan will examine future opportunities upon receiving the lump sum.
Pebercan's interim consolidated financial statements and management
report for the period ended December 31, 2007 are available on our Web site at
www.pebercan.com, as well as on SEDAR at www.sedar.com.
Pebercan is involved in the exploration, development and exploitation of
oil reserves in the Republic of Cuba. Pebercan sells its entire production to
the Cuban government but is not bound by any restrictions regarding the sale
of its oil. The Company's shares are listed on the TSX and trade under the
Legal Notice - Forward-Looking Statements
Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. We consider that these forward-looking
statements are reasonable given the hypothesis on which they are based and
which the Board of Directors of the Company has reviewed and ascertained as
being well founded. Pebercan disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Important additional information
identifying risks and uncertainties is contained in the Company's most recent
annual and interim reports and forms filed with the applicable Canadian
securities regulatory authorities.
For further information:
For further information: PEBERCAN Inc.: Christophe Ranger,
email@example.com; (514) 286-5200, Fax: (514) 286-5177; RENMARK Financial
Communications Inc.: www.renmarkfinancial.com; Henri Perron -
firstname.lastname@example.org; Dan Symons: email@example.com;
Montreal - (514) 939-3989/Fax: (514) 939-3717; Toronto - (416) 644-2020/Fax :