Pentanova Offers Update on the Llancanelo Asset

PentaNova Energy (TSXV: PNO), has provided an update for the company’s Llancanelo Asset in Argentina.

Focused on exploration and production PentaNova Energy is currently engaged in developing proven oil and gas plays in Latin America. The company also holds a large diversified portfolio of producing, development and unexploited assets in Colombia and Argentina.

As quoted from the press release:

Following on from the information provided in the company’s press release dated July 3, 2018, the company’s wholly-owned subsidiary Alianza Petrolera Argentina SA (Alianza) recently received formal notification from YPF advising that pursuant to the provisions of the governing agreement of the Llancanelo joint venture (JV), Alianza withdraw immediately from its 39 percent working interest in the Llancanelo Asset and transfer said working interest over to YPF on account of failure to pay outstanding cash call balances currently estimated to be US$8 million plus interest and owed by Alianza to the JV. YPF requested Alianza’s cooperation in making the necessary filings and obtaining the relevant governmental approvals necessary for the transfer of the working interest to YPF.

Alianza also received notification from YPF acknowledging the termination of the Llancanelo Farmout Agreement (FOA) due to certain conditions precedent to closing not being met by the long stop date. As a consequence, Alianza will not earn the 11 percent working interest resulting from the FOA. YPF requested that the parties should reverse the effects of all acts performed by them under the FOA and requested Alianza’s cooperation in making the necessary filings and obtaining the relevant governmental approvals necessary to that end.

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