Petro Vista Energy Corp. announced that its wholly-owned Barbados subsidiary, Petro Vista Energy Colombia (Barbados) Corp. ("PTV Barbados"), has completed the sale (the "Transaction") of all of the issued capital of Petropuli Ltda. ("Petropuli"), Petro Vista's indirect Colombian subsidiary, previously announced on December 8 and December 19, 2011 and January 24, 2012. The capital of Petropuli, which owns a 50 percent participating interest in the Morichito Block located in the Llanos Basin, Colombia, was acquired by Deep Core Inc. ("Deep Core").
Pursuant to the Transaction, as amended, Deep Core acquired the Petropuli capital for an aggregate of $1.75 million. Of this amount, $800,000 had previously been advanced by Deep Core to fund outstanding cash calls owing by PTV Barbados in respect of Block SSJN-5, located in the Middle Magdalena Basin and $369,535 was paid to settle outstanding costs associated with the closing of the Transaction. The balance of $580,465, together with an additional $200,209 that had previously been advanced by the Company to fund certain ANH guarantees for exploration work, for a total of $780,674, was placed into escrow by Deep Core. $200,000 of the funds held in escrow will be released in three months, and the balance will be released in six months, subject only to payments from the escrow proceeds that may be required to be made in respect of outstanding employment liabilities and any undisclosed past obligations of Petropuli, or liabilities arising from the non-delivery of certain post-closing deliverables.
The sale does not include Petropuli's 25 percent participating interest in Block SSJN-5, which will be transferred to a Petro Vista affiliate. Also, as a result of the closing of the Transaction, PTV Barbados is released from its obligations under the Advance Payment Agreement with Deep Core, previously announced on December 19, 2011, and Deep Core's security over Block SSJN-5 and PTV Barbados' rights in the La Maye Block is terminated. Pursuant to the same Advanced Payment Agreement Deep Core holds an exclusive option to acquire the Company's 25 percent participating interest in the La Maye Block, Colombia that expires on April 2, 2012.
In announcing the completion of the sale of the Petropuli shares, Petro Vista Chairman Keith Hill commented, "The sale of the Morichito property is the first step in Petro Vista's business plan to rationalize its Colombian oil and gas interests, allowing the Company to focus on the development of its Tartaruga producing asset in Brazil. The proceeds from the sale of Petropuli will also be directed towards pre-drill costs in the SSJN-5 Block."
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