VMM-37 Resolution
Sintana Energy Inc. has reached an agreement to resolve its arbitration with ExxonMobil regarding the VMM-37 block in Colombia. Under the resolution, Sintana's subsidiaries will conditionally assign their rights and interests in VMM-37 to ExxonMobil. In return, ExxonMobil will make two cash payments to Sintana: $3 million within sixty days of execution, and an additional $6 million, contingent upon approval by Colombian governmental agencies and other contractual requirements. This agreement aims to conclude legacy matters and allow Sintana to focus resources on its active portfolio.
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Sintana Energy Inc. (TSXV: SEI, AIM: SEI, OTCQX: SEUSF) (the "Company" or "Sintana") is pleased to announce that its subsidiaries, Patriot Energy Oil and Gas Inc. and Patriot Energy Sucursal Colombia ("Patriot"), have successfully reached agreement to resolve the previously announced arbitration against ExxonMobil Exploration Colombia Limited and ExxonMobil Exploration Colombia Limited Sucursal Colombia (collectively, "ExxonMobil") associated with the VMM-37 block located in Colombia's Middle Magdalena Valley Basin ("VMM-37").
Pursuant to such resolution: Patriot and ExxonMobil have agreed to dismiss the current arbitration; Patriot has agreed to conditionally assign all of its rights and interests associated with VMM-37 to ExxonMobil (the "Assignment"); and ExxonMobil has agreed to make two cash payments to Patriot, the first $3 million due within sixty (60) days of execution, and a second payment of $6 million, together with mutual releases, conditioned on approval of the Assignment by the appropriate Colombian governmental agencies, including the Agencia Nacional de Hidrocarburos and other contractual requirements.
Robert Bose, Chief Executive Officer of Sintana commented: "We are pleased to bring this matter associated with our legacy position in Colombia to an initial conclusion. This outcome supports our efforts to streamline operations focusing resources on our active, high impact portfolio across the Atlantic margin."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.