VANCOUVER, Feb. 13, 2019 /CNW/ - CruzSur Energy Corp. (the "Company" or "CruzSur") (TSXV: CZR), provides an update on the Llancanelo asset and its reduction of liabilities, with YPF S.A. ("YPF"), the operator of the concession.
The Company has arrived at a settlement agreement with YPF whereby YPF will cancel the outstanding liabilities of CruzSur associated with the Llancanelo block and CruzSur has agreed with YPF to return its 39% working interest in the Llancanelo block. This will result in a significant reduction of liabilities from the Company's balance sheet, as described in the Company's latest MD&A on SEDAR and the Company's website, including cash calls assumed on acquisition as well as consideration payable on acquisitions as related to YPF and the Llancanelo portion of decommissioning obligations.
YPF will assume all rights and obligations relating to the 39% participating interest which CruzSur purchased through two transactions that occurred in 2017. The Farm-in agreement that CruzSur entered into with YPF to earn 11% working interest, in which CruzSur would contribute $54M USD of capital and pay $12.5M USD to earn 11% working interest will be canceled. YPF will release and hold harmless the Company from any and all commitments, damages or penalties related with this cancelation.
The Company will now work with YPF to obtain approval from the Province of Mendoza for the assignment of its participating interest to YPF. The Company is pleased to find a solution to the Llancanelo asset and looks forward to working with YPF to finalize this transaction.
About CruzSur Energy Corp.
CruzSur 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 producing, development and unexploited assets in Colombia and Argentina where it will leverage its amplitude of technical expertise and proven track record building companies and creating value.
Complete reports and statements are available on SEDAR at www.sedar.com and on the Company website www.cruzsur.energy
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 CruzSur Energy Corp.
For further information: CruzSur Energy Corp., Ralph Gillcrist, CEO & President; Chris Reid, CFO, Tel: (604) 609-6110