Jagercor Energy Corp. (JEM:CSE) (the "Company" or "Jagercor") advises that, as previously announced in its November 7, 2016 and December 12, 2016 News Releases, Central Argentina International (“Central”) had advised Jagercor that the Province had granted a temporary extension of the actual concession agreement until December 10, 2016 to maintain actual commercial conditions in order to complete negotiations for the requested 10 year concession extension period. The Catriel Oeste Oil Concession, located in Rio Negro Province, Argentina is the property of Central, and the Company holds its interest in Catriel Oeste through a Development Agreement (the "Agreement") between the Company’s Argentine subsidiary and Central as previously announced on August 7, 2014.
In January, Central advised Jagercor that Central continued to be involved in negotiations with the Rio Negro Province to extend the concession and had advised of a new offer to the Province related to extension agreement. However, Central now has advised Jagercor that the Province of Rio Negro has rejected its offer, denying an extension of the actual concession agreement. As of today, Central is operating the Catriel Oeste oilfield until the Province initiates transfer of the asset (concession) to Provincial Hydrocarbons Company. Without an extension agreement, production rights over the 3 wells terminate.
In the meantime, Central has failed to make payments to Jagercor under the Agreement for the periods of December and January, which the Company estimates to be approximately $90,000.-. Jagercor is considering the options available to it to recover the payments owed under the Agreement.
The Company will continue to update the market as it obtains additional information about the Central situation. The Company will evaluate its business options as a result of the effective termination of the Agreement as a result of Central’s inability to obtain a concession extension from the Province.
About Jagercor Energy Corp.
Jagercor Energy is a diversified, upstream oil and gas services company with capabilities in production optimization and production management. The Company has a skillful technical and highly trained management team with many years of operational experience in the oilfield operation sector in Argentina.
On behalf of the Board of Directors
JAGERCOR ENERGY CORP.
This news release includes certain information, with management’s assessment of Jagercor’s future plans and operations, and contains forward-looking statements which may include some or all of the following: production from new wells and anticipated completion of wells drilled. By their nature, forward-looking statements are subject to numerous risks and uncertainties; some of which are beyond Jagercor’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, changes in environmental, tax and royalty legislation, competition from other industry participants, the lack of availability of qualified personnel or management, the inherent uncertainties and speculative nature associated with oil and gas exploration, development and production including drilling risks, geological risks and others, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The principal assumptions Jagercor has made includes security of land interests, drilling cost stability, royalty rate stability, oil and gas prices to remain in their current range, finance markets continuing to be receptive to financing the Company and industry standard rates of geologic and operational success. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Jagercor disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Reserves and Other Oil and Gas Disclosure
Jagercor has no working interest in the Property and does not claim to report any reserves, resources other than reserves or measurements thereof. Jagercor´s interest is limited to a funding agreement in the form of the Agreement entered into with Central.
Any references in this news release to test rates, flow rates, initial and/or final raw test or production rates, early production, test volumes behind pipe and/or "flush" production rates are useful in confirming the presence of hydrocarbons, however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for Jagercor or its partners.
All calculations converting natural gas to barrels of oil equivalent ("boe") have been made using a conversion ratio of six thousand cubic feet (six "Mcf") of natural gas to one barrel of oil, unless otherwise stated. The use of boe may be misleading, particularly if used in isolation, as the conversion ratio of six Mcf of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.