Petrodorado Announces the Divestiture of the Talora Block and the Receipt of Payment of Amerisur Shares
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
Calgary, Alberta (FSCwire) - Petrodorado Energy Ltd. ("Petrodorado" or the "Company") (TSXV-PDQ) is pleased to announce that it has divested its interest in the Talora Block and received the final payment of Amerisur shares.
Petrodorado has successfully divested its participating interest in the Talora Block of the Upper Magdalena basin of Colombia (the “Talora Interest”). This divestiture was realized by way of the sale of the Company subsidiary which holds the Talora Interest. This transaction eliminates exploration commitments of at least $2.1 million (all amounts in United States dollars, unless otherwise noted) as well as existing environmental reclamation obligations while enabling the Company to participate through a Back In After Payout Option (“BIAPO”) of 2% on the first well drilled and a Right of First Refusal (“ROFR”) of 2% on any subsequent wells drilled in the Talora Block. Furthermore, the term deposit plus accrued interest of approximately $0.3 million held by the Agencia Nacional de Hidrocarburos (“ANH”) for commitments existing on the Talora Block will also be released back to Petrodorado upon the acceptance by the ANH of the establishment of a comparable term deposit by the purchaser of the Talora Interest, a private oil and gas enterprise.
Receipt of Payment of Amerisur Shares
Petrodorado is pleased to announce the receipt of common shares of Amerisur Resources PLC (“Amerisur”) in connection with Petrodorado’s divestiture of its participating interest in the CPO-5 and Tacacho Blocks, announced on June 29, 2015. Petrodorado has received an allotment of 4,702,972 common shares of Amerisur as the last of three consideration payments as established in the agreement with Amerisur. With the receipt of this latest tranche of Amerisur shares, the Company now holds a total of 9,851,419 Amerisur shares. The common shares of Amerisur are listed on the AIM Market of the London Stock Exchange.
Management continues efforts towards realizing its primary goal in connection with the special distribution proposal to eliminate existing contractual liabilities through the divestiture and/or discontinuation of remaining joint venture or other oil & gas operations to which Petrodorado continues to be a compulsory party. These efforts will ultimately reduce the working capital budget requirements of Petrodorado’s remaining operations to the extent that the Company will be able to execute the distribution of cash and Amerisur shares of an anticipated overall value of $0.40 CAD per common share to Petrodorado shareholders. It is the intention of management to leave minimal financial resources of approximately $750,000 to maintain the Company after settling and/or eliminating existing contractual obligations and corporate liabilities as well as executing the proposed special distribution. While management works towards executing the special distribution in the most time effective manner possible, further information regarding the realization of the special distribution will be provided to shareholders once a firm timeline for the elimination of the aforementioned Company liabilities and contractual commitments that remain can be established, allowing Petrodorado to move forward with the special distribution without restrictions.
About Petrodorado Energy Ltd.
Petrodorado is primarily engaged in petroleum and natural gas exploration and development activities in Colombia. Its head office is located in Calgary, Alberta, Canada and Petrodorado’s common shares are traded on the TSXV under the trading symbol “PDQ”.
For further information, please contact:
Chris Reid, President and CEO
Lynn Chapman, VP Finance and CFO
Phone: (403) 800-9240
Forward Looking Statements:
This news release includes information that constitutes “forward-looking information” or “forward-looking statements”. More particularly, this news release contains statements concerning expectations regarding the possibility of the issuance of a special distribution, the expected timing thereof, and the overall strategic direction of the Company. The forward-looking statements contained in this document, including expectations and assumptions concerning the obtaining of the necessary regulatory approvals, and the assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated developments and although the Company believes that the expectations represented by such forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. Material risk factors include, but are not limited to: the risks of the oil and gas industry in general, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable shortages of equipment and/or labour; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and reliance on industry partners.
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.
The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
To view this press release as a PDF file, click onto the following link:public://news_release_pdf/Petrodorado02092016.pdf
Source: Petrodorado Energy Ltd. (TSX Venture:PDQ) http://www.petrodorado.com/
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