VANCOUVER, July 3, 2018 /CNW/ - PentaNova Energy Corp. (the
"Company" or "PentaNova") (TSXV: PNO), provides an
update on the ongoing operations of the Llancanelo Asset with YPF
S.A. ("YPF"), the operator of the concession.
As part of the various Argentina acquisitions completed by the
Company in August and October 2017
relating to the Llancanelo heavy oil asset, the Company, through
its wholly-owned subsidiary Alianza Petrolera Argentina SA
(Alianza) initially acquired a 39% working interest in the
Llancanelo block, and assumed cash call balances owed to YPF, and
in November 2017, the Company
farmed-in (the "Farm-In") to acquire an additional 11%
working interest from YPF, subject to regulatory and administrative
approvals and to the satisfaction of certain terms and
conditions.
The Company has been attempting to negotiate a payment plan for
cash call balances with YPF without success to date. The Company
recently received formal notification from YPF (the
"Notification") advising that, under the terms of the
governing agreement of the Llancanelo joint venture project, oil
production pertaining to the Company's participating interest in
the concession will be retained by YPF, with sales of such oil
production, net of operating costs, being credited towards
PentaNova's outstanding cash call balances. Furthermore, the
governing agreement of the Llancancelo joint venture states that a
failure to pay the outstanding cash call balance may result in the
defaulting party losing it's working interest. The Company is
currently holding discussions with YPF in order to find a solution
to retain the 39% working interest in addition to exploring
financing options to cover the cash call balance.
In relation to the Farm-in agreement, Alianza has not been able
to satisfy certain conditions precedent, including securing
financing for its farm-in obligations and obtaining regulatory and
administrative approval before the longstop date of June 22, 2018, and is consequently engaged in
discussions with YPF.
About PentaNova
PentaNova is investing in proven leadership and technology to
develop oil and natural gas fields it has acquired in areas
surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience
in Latin America and global energy
development, PentaNova's leadership is working with local partners
and service providers, including YPF, Argentina's respected energy producer, to
deliver the energy for Latin
America's future.
Forward-Looking Information
This news release contains "forward-looking statements" and
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
securities legislation. Such forward-looking statements include,
without limitation, forecasts, estimates, expectations and
objectives for future operations that are subject to a number of
material factors, assumptions, risks and uncertainties, many of
which are beyond the control of the Company.
Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by
the words "expects", "plans", "anticipates", "believes", "intends",
"estimates", "continues", "projects", "forecasts", "potential",
"budget" and similar expressions, or are events or conditions that
"will", "would", "may", "could" or "should" occur or be achieved.
This news release contains forward-looking statements, pertaining
to, among other things, the following: the Company's ability to
negotiate a payment plan with the YPF, the assumed cash call
balances and PentaNova's ability to pay the same, the possibility
that the Company may be required to withdraw from the underlying
concession, the ability of the Company to mitigate the
circumstances regarding its payment obligations under the Farm-In,
the status of the Farm-In and the long-term plan for the Llancanelo
joint venture project.
Although the Company believes that the material factors,
expectations and assumptions expressed in such forward-looking
statements are reasonable based on information available to it on
the date such statements are made, undue reliance should not be
placed on the forward-looking statements because the Company can
give no assurances that such statements and information will prove
to be correct and such statements are not guarantees of future
performance. Since forward-looking statements address future events
and conditions, by their very nature they involve inherent risks
and uncertainties.
Actual performance and results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to: known and unknown risks,
including those set forth in the Company's Management's Discussion
and Analysis for the year ended December 31,
2017 (a copy of which can be found under PentaNova's profile
on SEDAR at www.sedar.com); the risks associated with the oil and
gas sector, including current and expected oil and natural gas
prices; exploration and development costs and delays; reserves
discovery and decline rates; pipeline and transportation capacity;
weather, health, safety and environmental risks; integration of
acquisitions, competition, and uncertainties resulting from
potential delays or changes in plans with respect to acquisitions,
development projects or capital expenditures and changes in
legislation including, but not limited to, tax laws, royalties,
incentive programs and environmental regulations; stock market
volatility and the inability to access sufficient capital from
external and internal sources; operations in foreign jurisdictions;
general economic, market or business conditions; global economic
events; changes to PentaNova's financial position and cash flow;
the availability of qualified personnel, management or other key
inputs; currency exchange fluctuations; changes in political and
security stability; risks and uncertainty related to distribution
and pipeline constraints; and other unforeseen conditions which
could impact the Company. Accordingly, readers should not place
undue importance or reliance on the forward-looking statements.
Readers are cautioned that the foregoing list of factors is not
exhaustive.
Statements, including forward-looking statements, contained
in this news release are made as of the date they are given and the
Company disclaims any intention or obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
Additional information on these and other factors that could
affect the Company's operations and financial results are included
in reports on file with applicable securities regulatory
authorities and may be accessed under PentaNova's profile on SEDAR
at www.sedar.com.
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.