- Centaurus Energy Inc. (CTA) has entered an agreement with Neuquén province’s Ministry of Energy and Natural Resources
- The agreement outlines the extension of milestones concerning the Curamhuele concession
- Centaurus is currently in the process of securing a performance bond, and financing solutions are being evaluated by an independent committee
- Shares in Centaurus Energy are down 5.26% to $0.09, with a market cap of $48.97 million
ntaurus Energy Inc. (CTA) has agreed with the Ministry of Energy and Natural Resources in Argentina’s province of Neuquén to adjust the milestone schedules for the company’s drilling obligations in its Curamhuele concession.
Centaurus has a 90% interest in the Curamhuele concession, which is prospective for liquids in the Lower Agrio formation, as well as gas and condensate in the Vaca Muerte formation.
The concession covers roughly 51,000 net acres.
On November 14, 2019, Centaurus received a letter from the Ministry which stated that the milestones for the vertical tests that were agreed as part of a two-year extension were not being met.
The letter also stated that failure to meet this commitment or to adjust the agreed-upon milestones may result in the termination of the concession and the company’s responsibility for approximately US $8 million in lost investment
Upon receipt of the letter, Centaurus says it immediately entered discussions with both the Ministry and Gas y Petróleo del Neuquén S.A. – a provincial government oil and gas company that has the remaining 10% working interest in the concession – to adjust the milestones.
On January 10, 2020, Centaurus received a second letter from the Ministry which outlined a proposed milestone adjustment agreement.
Also, the letter stated that the company has until April 30, 2020, to determine specific financing to comply with the schedule.
This financing is conditional upon Centaurus submitting a performance bond of 3,230 technical units, or US $16,150 within 72 hours of signing the agreement.
The bond may be executed if the company fails to comply with the terms of the agreement; in particular, the submission of contracts, invoices and any other evidence that shows the contracting of a drilling rig and the securing of a wellhead and all necessary casing.
Having accepted the Ministry’s proposal on January 20, 2020, Centaurus is currently in the process of securing the performance bond, and financing solutions are being evaluated by an independent committee of directors appointed by the company’s board.
Shares in Centaurus Energy are down 5.26% to $0.09, with a market cap of $48.97 million. https://www.sedar.com/GetFile.do?lang=EN&docClass=8&issuerNo=00017647&issuerType