PROPERTY DISPOSITION / Petrolex Energy announces Sale of Interests
VANCOUVER, Feb. 10 /CNW/ - Petrolex Energy Corporation
Trading Symbol: PXV - TV
Petrolex Energy Corporation (the ''Company'') is pleased to announce that
it has reached agreement with Adair International Oil and Gas, Inc. (''Adair
International'') to sell the Company's interests in its non-core oil and gas
exploration licenses in Colombia.
The Company has agreed to sell its 15% carried interest in the Maracas
Association Contract and its 70% working interest in the Los Toches
Association Contract to Adair International for a total purchase price of US$5
million, of which US$2.5 million is payable in cash and US$2.5 million is
payable by way of an interest bearing unsecured convertible debenture. The
purchase is scheduled to close within 60 days and is subject to Adair
International completing its current financing.
The disposition of these interests will now allow the Company to focus
exclusively on developing its principal asset, the Rubiales Oilfield.
Discussions regarding the required pipeline are now well advanced and it
is anticipated that a final proposal to build a line from Rubiales to connect
with existing export infrastructure will be received by the Company in March
and that agreements should be finalized within the second quarter.
It is expected that the line will have an initial capacity of 50,000 bopd
and will have the ability to be upgraded to 100,000 bopd in the future and
that the line will be built, owned and operated by a third party and the
Company will be charged a throughput tariff thereby significantly reducing the
amount of capital that the Company will need to provide. Additionally, an
outline proposal for blending, transportation and marketing facilities for
Rubiales crude has been received and final negotiations are expected to be
held in the near future.
The likely outcome of all these plans and proposals is that, with the
exception of field development, the costs for pipeline, blending,
transportation and marketing facilities will have been laid off to third
parties resulting in a 70% to 75% reduction in the Company's capital budget to
bring the field to production at the initial rate of 50,000 bopd by the year
2000.
On behalf of the Board of Directors
PETROLEX ENERGY CORPORATION
Keith R. Fellowes,
President & C.E.O. |
