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Canoel announces Memorandum of Understanding to purchase oil producing properties in Argentina |
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Written by Newswire
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Calgary, AB - Canoel International Energy Ltd. Announced September 15 that it has entered into a Memorandum of Understanding with a US-based corporation for the purchase of two adjacent oil producing properties in Argentina.
The properties are located in the Patagonia region in southern Argentina and currently together produce approximately 170 barrels of oil per day with no associated gas, says the company. Canoel will also be investigating what has been described as additional development potential of these two oil production properties.
The acquisition will be completed through the acquisition of the shares of the companies which own the properties. The Company intends to conduct the required additional due diligence, while at the same time raising the funds to pay for the consideration. The purchase price will be US $2,400,000.00 in exchange for which Canoel will acquire the shares of the companies, their ongoing businesses, the two concessions and the existing production equipment so that Canoel will be able to continue the income stream as before immediately upon closing. A formal Purchase and Sale Agreement is in the process of preparation to formalize the acquisition.
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