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.
Complete reports and statements are available on SEDAR at
www.sedar.com and on the Company website
www.pentanovaenergy.com.
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 PentaNova Energy Corp.