|By Marketwired .||
|May 28, 2014 08:10 PM EDT||
TORONTO, ON -- (Marketwired) -- 05/28/14 -- Sintana Energy Inc. (TSX VENTURE: SNN) ("Sintana"), a Canadian oil & gas company focused on exploration and development activities in Colombia, is pleased to announce that it has entered into a settlement agreement (the "Agreement") with Petrodorado Energy Ltd. ("Petrodorado"). In accordance with the Agreement, the parties have terminated the arbitration process with all present and future claims related to the arbitration having been settled in full.
As part of the settlement, Petrodorado will reimburse Sintana for work performed by its technical staff that is mutually beneficial for the ongoing development of the Talora discovery on the Verdal structure.
The Talora Block, located in the upper Magdalena Valley of Colombia, is comprised of 34,194 gross acres. The Talora License contract has competitive terms: no X-factor, no government back-in, a favorable royalty rate and a 24 year exploitation term. The Block is surrounded by several oil fields, the four closest having estimated total recoverable oil in excess of 150 Million barrels ("MMBO"). The nearby Guando Field, the largest oil field in the region is estimated to have over 120 MMBO barrels of recoverable oil and more than 1 Billion barrels in place.
Doug Manner, Director and CEO - "We are pleased to have reached a satisfactory resolution of the matters submitted for arbitration to the mutual benefit of our partnership. We look forward to working with Petrodorado management and technical staff to attain our primary common goal of discovering, developing and producing substantial quantities of economic hydrocarbons. We are encouraged by the value creation potential of the Talora Block and look forward to a long and successful professional relationship with our partner."
ABOUT SINTANA ENERGY:
The Company is primarily engaged in petroleum and natural gas exploration and development activities in Colombia. The Company's exploration strategy is to acquire, explore, develop and produce superior quality assets with significant reserve potential.
The Company's private participation interests in Colombia include 100% of the conventional and 30% of the unconventional resources in the 43,158 acre VMM-37 Block, located in the Middle Magdalena Basin. Sintana also has a 30% private participation interest in the 34,194 acre Talora Block, 30% in 272,021 acres in the COR-39 & COR-11 Blocks and 25% carried private participation interests in the 154,909 acre VMM-4 and the 59,522 acre VMM-15 Blocks all located in the Magdalena Basin. In the Llanos Basin, the Company has a carried 25% private participation interest in the 11,624 acre LLA-18 Block. These interests are subject to all applicable regulatory and governmental approvals, including those of Colombia's National Hydrocarbon Agency (ANH).
On behalf of Sintana Energy
Chief Executive Officer
For additional information or to receive timely updates about Sintana's South America projects and recent corporate activities please visit the Company's website at www.sintanaenergy.com or email [email protected].
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Sintana which have been used to develop such statements and information but which may prove to be incorrect. Although Sintana believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements as Sintana can give no assurance that such expectations will prove to be correct. Neither the Company nor any of its subsidiaries nor any of its officers, directors or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Sintana will continue to conduct its operations in a manner consistent with past operations; results from drilling activities; the accuracy of the estimates of Sintana's resource volumes and interpretations of drilling activity results; availability of financing and/or cash flow to fund Sintana's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Sintana operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Sintana to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of the operator of the projects in which Sintana has an interest in to operate the field in a safe, efficient and effective manner; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Sintana operates; and the ability of Sintana to successfully market its oil and natural gas products. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: risks associated with the uncertainty of exploration results and estimates, inaccurate estimation of Sintana's oil and gas resource volumes, currency fluctuations, the uncertainty of conducting operations under a foreign regime, exploration risk, the uncertainty of obtaining all applicable regulatory approvals, the availability of labour and equipment, the fluctuating prices of oil and natural gas, the availability of financing and the Company's dependence on Sintana's management personnel, other participants in the property areas and certain other risks detailed from time-to-time in Sintana's public disclosure documents, (including, without limitation, those risks identified in this news release and Sintana's Annual Information Form). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Analogous Information: Certain information contained herein is considered "analogous information" as defined in National Instrument 51-101 - Standards of Disclosure of Oil and Gas Activities ("NI 51-101"). Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. In particular, this press release notes that oil fields surrounding the Talora Block have significant amounts of recoverable oil in place and makes certain assumptions about the Talora Block as a result of such analogous information and potential recovery rates at Talora as a result thereof. Such information is based on public data and information recently obtained from a database maintained by Wood MacKenzie. The Company has no way of verifying the accuracy of such information and cannot determine whether the source of the information is independent. Such information has been presented to help demonstrate that hydrocarbons may be present in commercially recoverable quantities in the Company's area of interest. There is no certainty that such results will be achieved by the Company and such information should not be construed as an estimate of future reserves or resources or future production levels. Values for surrounding fields in Colombia have been obtained as reported in the Industry published reports and the Wood MacKenzie Database
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Chief Executive Officer