Vancouver, British Columbia / ACCESSWIRE / Aug 7, 2014 / Jagercor Energy Corp. (JEM:CSE) ( the "Company" or "Jagercor") is very pleased to announce that it has entered into a Development Agreement (the "Agreement") with Central International Corporation Sucursal Argentina (“Central”), an upstream oil and gas operator in Argentina, to fund the drilling of three wells at Catriel Oeste Oil Concession, located in Rio Negro Province, Argentina. These three wells constitute the 2014 development project (the “Project”).
Under the terms of the Agreement, Jagercor will pay approximately US$4,200,000 under certain conditions. The monies will be used to drill, complete and equip three development wells. In the initial phase of the Project, 70% of gross proceeds will flow to Jagercor in order to recover its investment. Once the investment is recovered, the Company’s share of production will be 40%.
Central will be the operator for the Project. The Companies have surveyed the location that will be used to target the main objective of these wells, which is to continue developing traditional reservoirs on the top of Quintuco formation.
Catriel Oeste is ideally located for low risk development drilling in or adjacent to infrastructure and existing wells. Hundreds of wells have been drilled at this site since 1964. Central and Jagercor expect to commence drilling operations at the beginning of September 2014, subject to rig availability.
This Agreement provides Jagercor the right to extend the Project to five additional wells at the Concession Area, corresponding to the 2015 drilling campaign.
Pablo Chebli, Vice President and Country Manager of Central International Corporation Sucursal Argentina noted "We are very pleased to work with Jagercor in our Catriel Oeste Oil Concession since it will allow us to accelerate the development of our oil assets in Argentina. This is just the first step in a promising relationship between these two upstream companies."
Mr. Russo, Jagercor´s Chief Executive Officer, commented: “This is a fantastic opportunity that we were able to accomplish within a tight schedule. It puts us right on course in order to begin execution of our plan of managing oil production in Argentina. Together with Central, a company with very high quality fields, we anticipate that drilling these three wells will develop an area that represents more than 100,000 bbls cumulative oil production for Jagercor over the next two years.”
About Jagercor Energy Corp.
Jagercor Energy is a diversified, upstream oil and gas services company with capabilities in reservoir development, 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.
About Central International Corporation Sucursal Argentina
Central, an upstream oil and gas operator in Argentina, is the registered Argentine branch of Central International Corp., an affiliate of Central Resources, lnc. which, through its affiliates, has proven global experience and successful track record as an oil and gas operator of upstream projects.
On behalf of the Board of Directors
JAGERCOR ENERGY CORP.
Edgardo Russo President & CEO
For further information, please contact:
Investor Relations: Etienne Moshevich at 604 681 0084
Reader Advisories
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, 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.
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Source: Jagercor Energy Corp.