NGX Energy International Corp. (formerly CruzSur Energy Corp.) is pleased to announce that it has received a binding commercial offer from CPVEN (the "Binding Offer") to develop the wells planned for SN-9's wells, the Company's 311,353 acre project located in the Lower Magdalena Basin of Colombia, which is a prolific hydrocarbon producing region near the Caribbean coast. The Binding Offer has been made under Colombian commercial legal regulations.
Under the Binding Offer, the companies will enter into a market pricing-based preferred supply agreement for drilling and gas well services activities for all phases of the SN-9. CPVEN has initially committed to construct and complete four gas wells, including mobilization, demobilization, engineering, drilling and completion, for an aggregate cost of US$27.2 million, with each well projected to cost US$6.8 million, subject to adjustments for the activities and volume realized at each well.
CPVEN has offered to finance the construction of the four wells, with defined monthly installments for each based on the results of the first well; NGX will be obliged to make a 25% down payment on the cost of each well, with 10% made in advance of the commencement of drilling and the remaining 15% paid 90 days after drilling is commenced, with the remaining 75% paid in monthly installments, the number of which vary with each well, after completion of the well. NGX will be obligated to maintain a monthly balance of US$1 million to pay for CPVEN's services and which will serve as a guarantee for such payment. This is done under the economic interest the company has in the SN-9 block.
CPVEN is a multinational leader in gas and oil services that was founded in 1981 and which is active in both exploration and production. CPVEN has developed its own technology and has the managerial and technical personnel capable of executing the most complex operations, utilizing state-of-the-art infrastructure and equipment design. CPVEN has operations in Colombia, Ecuador, the USA, Kuwait, Peru and Venezuela and has extensive experience and ability in well drilling and rehabilitation, as well as the operation of well services.
The Company is also pleased to announce that FINRA has approved a change in the Company's stock symbol trading on the OTC Markets to GASXF.
