Canadian Securities Corporation New Stratus Energy Company It has just announced that it has completed the direct acquisition of a 50% stake in investor GoldPillar International Fund SPC Ltd, a private company based in the British Virgin Islands, which in turn owns 40% of Petrolera Vencupet, SA, created in 2010. By the Hugo government Chavez to strengthen its energy relations with Cuba.
GoldPillar is a mutual fund that leverages transactions in gold and bonds to manage a wide range of assets. Now he has 50% left of the 40% of Venezuelan society that intends to save the old fields run by Vincubit.
Fancobit, a failed project that has been paralyzed for years. It owns oil production rights in the fields called “Adas”, “Lido”, “Limon”, “Leona”, “Officina Norte” and “Officina Central”, in the states of Anzoategui and Monagas in the east of the country. An area with a long oil tradition.
The other 60% of Vencupet's capital is owned by Petróleos de Argentina SA (PDVSA), through its subsidiary Corporación Venezolana de Petroleo SA (CVP).
As part of the deal, New Stratos, whose junior oil company has investments in Colombia, Mexico and Ecuador, will make a significant capital investment to complete a revitalization program of up to 246 wells in the fields, through a six-year revolving line of credit. months for $65.8 million for Vencupet via GoldPillar, the Canadian company explained in a statement sent to the press and to the stock markets on which it is listed.
Vencupet was created in 2010 between PDVSA through CVP and the Cuban government company Cuban Petroleum Union (CUPET)Which would end up ceding its shares to its Venezuelan partners in 2016. “This alliance was born in accordance with the rights granted by the Cuban government to explore and develop areas located in Cuban territorial waters adjacent to the Gulf of Mexico.” Venezuela's national oil company said at the time of announcing the agreement with the Cubans.
“Taking into account payments for the sale of oil and products under the financing agreement, New Stratos expects the maximum indirect capital exposure under the facility at any one time to be approximately US$25 million,” he explains.
“As consideration for securing and offering this opportunity to New Stratus, a finder’s fee will be paid to Mr. Franco Favilla (“Favilla”), an Italian citizen and former beneficial owner of 100% of GoldPillar’s share capital, in an amount the information states: US$8.5 million, of which US$4.0 million $4.5 million paid at closing and $4.5 million payable in installments within 24 months of closing.
Favela heads Seasif Holding, an international financial group based in Nicosia, Cyprus, which operates in real estate, precious metals, insurance and commodities. According to company information.
What the Cubans left for him
The Canadian company is now partnering with PDVSA to salvage the oil fields, which occupy an area of 794.2 square kilometers, with a contract that expires in December 2035. But he will request an extension until 2050.
“GoldPillar will provide a six-month revolving credit facility worth €60 million to Vencupet for a total period of four and a half years. He explains that NSE's maximum indirect capital exposure under the credit facility at any given time will be approximately US$25 million.
Regarding estimates of the in situ resources to be developed, there are 12.455 million barrels that are 100% risk free; In addition to 10.587 million barrels at risk.
The best estimate expects production of 7,400 barrels per day.
In the unexplained development of these contingent resources, it is estimated that there are 48.9 million barrels without operational risk and an additional 30.9 million barrels with risk.
PDVSA's partner company will receive oil production income from its 40% operational participation in the fields; In addition to general contractor fees to resume production at the fields and to provide initial capital to fund capital expenditure requirements for the fields; As well as marketing fees for oil coming from the fields.
Due to lack of investment and working capital, the fields are not currently producing. Its last production was in 2015, when production averaged about 800 to 1,000 barrels of oil equivalent per day.
In 1960, when the fields began producing, they reached a maximum production of about 60,000 barrels per day. The statement explained that production from the fields consists of light and medium crude oil, heavy crude oil, conventional natural gas, and liquid natural gas.
Vencupet's transfer of oil production rights to the fields has an initial term of 25 years, expiring in December 2035. Under the current agreements with PDVSA, Vencupet will request an extension of the said rights for an additional 15 years, i.e. until 2050. One of GoldPillar's subsidiaries will be The exclusive contractor for operational activities in the fields and will implement the reactivation program to resume production.
The reactivation program consists of reactivating 246 wells, of which 90 wells will be reactivated in 2024 and 2025, and the remaining 156 wells will be reactivated in 2026 and beyond.
The contractor will perform conventional maintenance operations for each well with the aim of returning the wells to initial production. By reviewing available technical and geological data, the Corporation anticipates that there will be opportunities to recover locked and diverted oil in previously active fields. The corporation expects commercial production to begin in the first quarter of 2024. The reactivation program is based on a pre-development study that includes field visits and analysis of the reservoir.
Emergency resources have been allocated to each of the 90 wells. These 90 wells were mostly drilled in the 1950s and 1960s, and well completion data exists for 46 of the 90 wells scheduled for completion.
