Jagercor Energy Corp. (JEM:CSE) (JAMTF) (the "Company" or "Jagercor") - Jagercor’s agreement to purchase a controlling interest in Energia Compañía Petrolera Sociedad Anónima (“ECP”), an upstream oil and gas Argentinean Operator, will be completed as a non-cash transaction.
Under the terms of the agreement with a private vendor, Jagercor will acquire an indirect 95% interest in ECP and as consideration for the acquisition, Jager Energia Argentina SA (“JEA”), the Company’s subsidiary in Argentina will issue to the vendor as payment for the acquisition, new shares equal to a 40% equity interest in JEA. By accepting the contribution of ECP shares into the subsidiary, it increases the capital stock of JEA in the amount of approximately CDN$21,000 with a premium. Assessment of the value of the share´s exchange is approximately CDN$230,000 based on ECP´s total net worth as reflected in its last audited financial statements; however, there are no assurances on the specific value of the ECP acquisition and its integration into theCompany.
The Company will pursue acquisitions in the basin and is eager to move forward into be an important player in the operational sector of Argentina.
About Jagercor Energy Corp.
Jagercor Energy is a diversified, upstream oil and gas services company with capabilities in Oil and Gas production management. The Company has a 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.
President & CEO
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: the completion of the Company’s proposed transaction with ECP is subject to receipt of certain routine shareholder approvals in JEA, for which the Company will approve as majority shareholder; Field acquisition is subject to certain regulatory and argentinean government authority consents, no certainty on production from new wells and anticipated revenues received from 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 impreciseand,assuch,unduerelianceshouldnotbeplacedonforward-lookingstatements.
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