VANCOUVER, B.C., April 30, 2019 – CruzSur Energy Corp. (the “Company” or “CruzSur”) (TSXV: CZR) announces the filing of its Annual Audited Consolidated Financial Statements and Management Discussion & Analysis for the years ended December 31, 2018 and December 31, 2017, as well as its 2018 Year End Reserves Report. All dollar values in this news release and the Company’s financial disclosures are in United States dollars, unless otherwise stated.

Financial Statements

Revenues for the year-end were obtained from the working interest in the Llancanelo, SRDE, KM8, and Mariposa Assets.

The Company recognized impairment losses of $58.9 million on its Colombian and Argentine oil & gas assets based on identified impairment triggers that indicated the recoverable value of these assets to be less than the current carrying value.

Financial Results & Balances

  • The Company had a current working capital deficiency of $13.0 million as of December 31, 2018

$ (U.S. dollars) 

Years ended December 31



Cash and cash equivalents



Working Capital (Deficiency)



Exploration and Evaluation Assets



Property, Plants, and Equipment



Total Assets



Net Oil and Natural Gas Production, boe



Net Oil and Natural Gas Revenue



Net Revenue on Carried Working Interest(1)



Royalty Expense



Operating Expenses



Net Operating Profit



Net Loss



Net Loss per Share, basic & diluted




(1) Represents net revenue results from the carried interest held by the Company in the Mariposa Asset.

Summary of 2018 Reserves

The reserve report for the Company’s Argentina properties (the “Sproule Report“) and the reserve report for the Company’s Colombian properties (the “Petrotech Report”) were prepared in accordance with the definitions, standards and procedures contained in National Instrument 51-101 – Standards of Disclosure For Oil and Gas Activities (“NI 51-101”) and the Canadian Oil & Gas Evaluation Handbook (the “COGE Handbook”) by Sproule Associates Limited and Petrotech Engineering Ltd.  Reserves estimates stated herein as at December 31, 2018 are extracted from the relevant reports. The Sproule Report  the Petrotech Reports contain several cautionary statements that are required by NI 51-101 and the reserves information presented is subject to the contents of the full reports. 

Year-End 2018 Reserves Highlights:  

  • Total Company proved plus probable (“2P”) Gross Reserves are 4,790 thousand barrels of oil equivalent (“Mboe”) which includes Argentina 2P Gross Reserves of 1,770 Mboe (1) and Columbia 2P Gross Reserves of 3,020 Mboe (1) ; and
  • Total Company 2P net present value (“NPV”) discounted at 10% Before Tax is $53.2 million, with Argentina’s 2P NPV discounted at 10% Before Tax of $21.8 million and Colombia’s 2P NPV discounted at 10% Before Tax of $31.4 million.

As management continues to review the best strategy forward for the Company, the timing and nature of the development of the Company’s reserves may be affected.

The following tables provide a summary of the Company’s oil and gas working interest reserves before royalties and NPV of future net revenue at December 31, 2018 using forecast prices and costs:

Reserves Summary (1)


Summary of Net Present Values of Future Net Revenue (1)

Forecasted Prices and Costs (2)

Before Income Taxes, Discounted at (%/year) (3)


(1)   It should not be assumed that the present value of estimated future net cash flows shown above are representative of the fair market value of the reserves. Boe have been reported based on natural gas conversions of six thousand cubic feet (6 Mcf) of natural gas to one barrel of oil:(1 Bbl). A boe conversation ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf:1 Bbl, utilizing a conversion ratio at 6 Mcf:1 Bbl may be misleading as an indication of value.

(2)   Based on Sproule’s and Petrotech’s forecasted prices for Argentina and Colombia, respectively, as of December 31, 2018.  

(3)   Tables may not add due to rounding.

As at December 31, 2018, CruzSur held a 100% working interest in the KM8 heavy oil field, a 54% working interest in the SRDE heavy oil field, and a 18% carried participating interest in the Mariposa Light oil and Natural gas field, all in Argentina. Additionally, the Company held and an 80% working interest in the Maria Conchita gas property in Colombia. These properties comprise all of the oil and gas reserves disclosed above.

About CruzSur Energy Corp. 

CruzSur is investing in proven leadership and technology to develop oil and natural gas fields it has acquired in areas surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience in Latin America and global energy development, CruzSur’s leadership is working with local partners and service providers to deliver the energy for Latin America’s future.

Additional information is available about the Company on SEDAR at and on the Company’s website

For further information

CruzSur Energy Corp.

Ralph Gillcrist CEO & President

Chris Reid CFO

Tel: (604) 609-6110


Forward-Looking Information

Estimates of reserves and resources in this news release are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and that the reserves described can be profitably produced in the future.

Except for the statements of historical fact, this news release contains certain “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or are events or conditions that “will”, “would”, “may”, “could” or “should” occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: estimates of recoverable reserves volumes and the future net revenues associated with those reserves; the rationalization of the asset portfolio of the Company; future acquisitions; cost reductions and head count and financial commitment reductions; possible financing alternatives, including a share consolidation; the Mandate; the goals of the board and management relating to the Mandate and the Company generally; and changes in the plans of the previous management team, including to plans in respect of the development of the Company’s reserves. Statements regarding future production, capital expenditures and development plans are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks, regulatory changes and certain other known and unknown risks detailed from time to time in the Company’s public disclosure documents, copies of which are available on the Company’s SEDAR profile at

Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. The Company’s actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Any “financial outlook” contained in this news release, as such term is defined by applicable securities laws, is provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes

Reserves Advisory

The Company’s reserves estimates have been prepared and evaluated in accordance with NI 51-101 and the COGE Handbook. Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. There is at least a 90% probability that the quantities actually recovered will equal or exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. There is at least a 50% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves.

It should not be assumed that the estimates of future net revenues presented herein represent the fair market value of the reserves or resources. Future net revenue values, whether calculated without discount or using a discount rate, are estimated values only and do not represent fair market value. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The reserve estimates provided herein are estimates only and there is no assurance that the estimated reserves will be recovered. Actual oil reserves may be greater than or less than the estimates provided herein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.