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
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 CruzSur Energy Corp.