- New Stratus Energy Inc. (NSE) closes transactions with affiliates of Repsol S.A. to transfer shares of Repsol Ecuador S.A. to New Stratus
- New Stratus holds an indirect 35 per cent interest in service contracts for Blocks 16 and 67 in Ecuador
- Repsol Ecuador S.A., new subsidiary of New Stratus, operates the blocks
- Gross production on the blocks was 14,306 barrels of oil per day as of earlier this month
- New Stratus has plans to spend approximately US$200 million to drill approximately 30 development wells
- New Stratus Energy Inc. (NSE) is unchanged trading at $0.50 per share as of 1:24 p.m. EST
New Stratus Energy (NSE) has closed transactions to transfer shares of Repsol Ecuador S.A. to New Stratus.
New Stratus holds an indirect 35 per cent interest in service contracts for Blocks 16 and 67 in Ecuador. New Stratus subsidiary Repsol Ecuador S.A., operates the blocks.
Gross production on the blocks was 14,306 barrels of oil per day as of earlier this month.
Gross proved and probable reserves of 4.506 million barrels of oil have been reported from the blocks.
Handbook reserves can be booked only to the end of the term of the current service contract rather than the remaining economic life of the blocks.
There is potential for significant production from the blocks.
New Stratus has plans to spend approximately US$200 million to drill approximately 30 development wells.
The drilling will follow the completion of negotiations with the government of Ecuador to extend rights through a production sharing contract.
A new reserve report will then be commissioned to reflect reserves to the end of the newly negotiated contract.
The blocks have a long history of production, with a total of 262 wells drilled, and ‘excellent’ seismic coverage.
The blocks are comprised of 9 fields and have accumulated primary production of approximately 373 million barrels of oil.
Existing infrastructure includes two oil and water processing centers with a capacity of 900,000 barrels of water per day.
New Stratus Energy Inc. (NSE) is unchanged trading at $0.50 per share as of 1:24 p.m. EST.