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TORONTO, April 24, 2024 (GLOBE NEWSWIRE) — LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FRA: E26) (the “Business » Or « LNG Energy Group) is pleased to announce that its wholly owned subsidiary, LNGEG Growth I Corp. (“LNG Venezuela« ), entered into a binding agreement with PDVSA Petroleo SA (« PPSA), a subsidiary of Petroleos de Venezuela SA (“PDVSA« ), the Venezuelan national oil company, for the operation of the Nipa-Nardo-Niebla and Budare-Elotes CPPs in onshore Venezuela (collectively, the « Venezuela
Blocks« ).
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Venezuela – Overview of the country’s dynamics
The country is widely recognized as the location of some of the best oil and gas assets in the world. According to the BP 2023 Statistical Review, Venezuela has oil reserves of more than 300 billion barrels, the largest domestic oil reserves in the world and, by far, the longest reserve life. BP also estimates that Venezuela has natural gas reserves of more than 200 trillion cubic feet, ranking it ninth in the world.
Blocks of Venezuela
Venezuela’s blocks are located onshore in Anzoátegui and Monagas states and produce approximately 3,000 b/d of light and medium oil. LNG Venezuela will work jointly with PPSA to develop a work program based on technical due diligence and field visits.
Contract terms
The agreement with PPSA was concluded on April 17, 2024. LNG Venezuela will provide the necessary investment to continue the development of the fields and conduct operations and has 120 working days from the date of signing to satisfy the required contractual conditions precedent in order to be assigned. the CPPs and launch operations. Pursuant to the CPPs, LNG Venezuela will have a contractual right to between 50 and 56% of the hydrocarbon production from the Venezuela blocks.
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Additional Considerations
The CPPs were executed during the term of General License 44 issued by the United States Office of Foreign Assets Control (OFAC). License 44 was replaced by License 44A requiring the Americans to terminate its oil operations in Venezuela by May 31, 2024. The Company will evaluate in the coming days the applicability of License 44A to its planned operations in Venezuela and determine the most appropriate course of action. action. The Company intends to operate in full compliance with applicable sanctions regimes.
About the LNG Energy Group
The Company is focused on the acquisition and development of natural gas production and exploration assets in Latin America. For more information, please visit www.lngenergygroup.com.
LNG Energy Corp. Group
James Morris, Vice President, Business Development and Investor Relations
Email: invest.relations@lngenergygroup.com
Phone: 205-835-0676
CAUTION REGARDING FORWARD-LOOKING INFORMATION:
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements and are based on expectations, estimates and projections as of the date of this press release. Any statement that involves discussions regarding predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using expressions such as « expects », « anticipates ») », “plans”, “budget”, “planned”). « , « forecasts », « estimates », « believes » or « intends », or variations of these words and phrases, or stating that certain actions, events or results « may » or « could », « would » « , « may » or « will » be expected to occur or be achieved, are not statements of historical fact and may be forward-looking statements.. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and events to differ. futures differ materially from those expressed or implied by such information. forward-looking statements. These factors include: general business, economic, competitive, political and social uncertainties; the delay or inability to receive necessary approvals from the board of directors, shareholders or regulatory authorities, factors may arise that hinder or prevent LNG Energy Group’s future business plans; and other factors beyond the control of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, LNG Energy Group undertakes no obligation to update any forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law. There can be no guarantee that the Company or LNG Venezuela will be able to fulfill the acquisition conditions required by PPSA.
Reported production levels may not reflect sustainable production rates and future production rates may differ materially from production rates reflected in this press release due to, among other factors, difficulties or interruptions encountered during production hydrocarbons.
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.
Definitions: | |
bbl(s) | Barrel(s) of oil |
b/d | Barrel(s) of oil per day |
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