VANCOUVER, Aug. 20, 2018 /CNW/ - PentaNova Energy Corp. (the "Company" or "PentaNova") (TSXV: PNO), provides an update of events relating to the Llancanelo Asset in Argentina with YPF S.A. ("YPF"), the operator of the concession.
Following on from the information provided in the Company's press release dated July 3, 2018, the Company's wholly-owned subsidiary Alianza Petrolera Argentina SA ("Alianza") recently received formal notification from YPF advising that pursuant to the provisions of the governing agreement of the Llancanelo joint venture ("JV"), Alianza withdraw immediately from its 39% working interest in the Llancanelo Asset and transfer said working interest over to YPF on account of failure to pay outstanding cash call balances currently estimated to be US$8 million plus interest and owed by Alianza to the JV. YPF requested Alianza's cooperation in making the necessary filings and obtaining the relevant governmental approvals necessary for the transfer of the working interest to YPF.
Alianza also received notification from YPF acknowledging the termination of the Llancanelo Farmout Agreement ("FOA") due to certain conditions precedent to closing not being met by the long stop date. As a consequence, Alianza will not earn the 11% working interest resulting from the FOA. YPF requested that the parties should reverse the effects of all acts performed by them under the FOA and requested Alianza's cooperation in making the necessary filings and obtaining the relevant governmental approvals necessary to that end.
On the same date, Alianza notified YPF its decision to terminate the FOA due to it not satisfying certain conditions precedent to closing by the long stop date, without fault on the part of Alianza. Furthermore, Alianza requested that YPF return the guaranties given in pursuance of the transaction.
PentaNova is continuing its discussions with YPF to negotiate a mutually agreeable settlement that, while allowing a satisfactory exit from the Llancanelo Asset and termination of the FOA, shall protect its value and Alianza's rights under the JVs.
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 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.
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.
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SOURCE PentaNova Energy Corp.
For further information: PentaNova Energy Corp., Ralph Gillcrist, CEO & President; Chris Reid, CFO, Tel: (604) 609-6110, E-mail: [email protected]