Mr. Richard Gonzales reports
PETRO-VICTORY ANNOUNCES AGREEMENT TO CONVERT ITS INTEREST IN PIRITY BLOCK TO
ROYALTY
Petro-Victory Energy Corp. has provided the following update on its Pirity concession in Paraguay.
Petro-Victory has agreed to sell to President Energy PLC its entire 36-per-cent interest in its Pirity concession held through its Pirity Hidrocarburos SRL subsidiary (PH) on the principal terms set out below.
Principal terms and conditions:
- Consideration payable to PH and Petro-Victory:
- $500,000 (U.S.) in cash payable in instalments, the first being $200,000 (U.S.)
followed by three of $100,000 (U.S.) each;
- All claims, debts and obligations between the parties previously accrued
have been released, including the forgiveness of certain conditional
debt in the amount of $2.85-million (U.S.) agreed to by the parties in their
prior settlement and forbearance agreement;
- In the event of a farm-out taking place in relation to Pirity and back
costs being paid, a sum limited to the first $2.7-million (U.S.) of back costs
received by President to be paid to the Petro-Victory group;
-
A net profits interest of 3 per cent of net income generated from successful
commercial production of hydrocarbons in Pirity to be paid to PH.
- Condition of the sale and purchase:
- Subject to Petro-Victory obtaining TSX Venture Exchange approval.
Richard Gonzalez, president of Petro-Victory, and Peter Levine, chairman of President, commented: "The agreement is an elegant and mutually beneficial way forward for the Pirity concession for all concerned.
"The sale and purchase allows President the freedom, flexibility and scope to exclusively progress Pirity, and permits Petro-Victory to devote its resources to pursue other opportunities in Latin America while retaining an interest in the event of successful production in Pirity freed from further financial responsibility."
We seek Safe Harbor.
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