Suroco Extends Deadline for NCT Acquisition
Suroco Energy says that, effective October 1, 2007, it extended the deadline for entering into a mutually accepted definitive agreement with NCT Corporacion Petrolera Latinoamericana S.L. in respect of the previously announced proposed arm's length acquisition of NCT by the Corporation. The Corporation and NCT continue to negotiate in good faith the terms of the Definitive Agreement and are working towards finalizing various matters ancillary to the Acquisition. The delay in finalizing some of these matters was due in part to difficulties in NCT retaining a qualified auditor in Spain. However, these issues have now been resolved and NCT expects to receive audited financial statements in the near future. The Corporation and NCT have agreed it is in their best interests to amend the letter agreement dated effective May 31, 2007 (the "Letter Agreement"), as amended, they originally entered into in respect of the Acquisition, to provide that the deadline to enter into such Definitive Agreement be December 1, 2007.
As previously announced, the Corporation and NCT entered into the Letter Agreement whereby the Corporation intends to acquire all of the issued and outstanding securities of NCT in exchange for 11,625,000 common shares in the capital of the Corporation at a deemed price of US$0.80 per share and the issuance of 4,375,000 special warrants of the Corporation. NCT is formed under the laws of Spain with offices in Caracas, Venezuela and Bogota, Colombia and operations in Colombia, Mexico and Texas, USA. NCT has existing oil production of approximately 216 barrels per day and gas production of approximately 206 boe per day (including interests to be acquired by NCT pursuant to ongoing transactions).
References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Western Canada. The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.
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- Suroco Picks Up Colombian Block (Jul 12)
- New Production to Put Suroco Ahead of Targeted Growth (Feb 08)