CRUZSUR ENERGY ANNOUNCES RESOLUTION OF DISPUTE WITH PETRO AP (HONG KONG) COMPANY LIMITED AND PROCOMM INVESTMENT LIMITED
VANCOUVER, B.C., July 2, 2019 –CruzSur Energy Corp. (the “Company” or “CruzSur”) (TSXV: CZR), is pleased to announce that the disputes with Petro AP (Hong Kong) Company Limited and Procomm Investment Limited (the “Claimants”), in relation with the Stock Purchase Agreement of 100% of the shares of Alianza Petrolera Argentina S.A., a company organized and existing under the laws of Argentina have been resolved.
On May, 2017 a Stock Purchase Agreement (amended on July, 2017) was entered into among the Company’s wholly-owned subsidiary Patagonia Oil Corp. (“Patagonia”) and the Claimants, to which Patagonia purchased from the Claimants all of their shares in Alianza Petrolera Argentina S.A. (the “Purchase Agreement”).
Pursuant to the Purchase Agreement, Patagonia withheld from the Purchase Price a total amount of US$5,000,000 and the real estate property owned by Alianza Petrolera Argentina S.A. located at Reconquista 661, 8th floor, City of Buenos Aires (the “Buenos Aires Property”) to cover Adjustments to Purchase Price and potential Losses, as set forth in Sections 2.3 and 8.1 of the Purchase Agreement..
Claimants requested Patagonia the immediate release of the Holdback Amount and the Adjustment Funds, as set forth in Sections 2.2(b)(v) and 2.2(b)(vi) of the Purchase Agreement, and the transfer of the Buenos Aires Property.
After long negotiations, the Company has agreed with Claimants a Settlement Agreement dated June 21, 2019, which includes: (a) payment by the Company of US$472,000 (“Settlement Amount”), (which amount has been paid), (b) Claimants withdrawal of any and all disputes arising, resulting or derived from the Purchase Agreement, and (c) Company and Claimants giving reciprocal releases from any and all claims and obligations of every kind and nature, resulting from or derived from the Purchase Agreement.
About CruzSur Energy Corp.
CruzSur Energy Corp. is a publicly traded E&P company focused on proven oil & gas plays in Latin America. The Company holds a large diversified portfolio of producing, development and unexploited assets in Colombia and Argentina where it will leverage its amplitude of technical expertise and proven track record building companies and creating value.
Complete reports and statements are available on SEDAR at www.sedar.com and on the Company website www.cruzsur.energy.
Except for the statements of historical fact, this news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about the completion of the operations described herein, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms of such transaction.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company’s inability to perform the proposed operations.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company’s ability to complete the planned operations and activities. The Company has also assumed that no significant events will occur outside of the Company’s normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
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For Further Information
CruzSur Energy Corp.
CEO & President
Marianella Bernal Parada
Tel: +1 (604) 609-6110