CALGARY, Dec. 18, 2017 /CNW/ - Oronova Energy Inc. ("Oronova" or the "Company") (TSX.V: ONV), a company focused on oil and gas exploration and production in Latin America, announces that the definitive Purchase & Sale Agreement dated April 1, 2017 (the "Purchase & Sale Agreement" or "PSA") for the acquisition of the Production Sharing Contract of Block 1-2006 in Guatemala has been terminated. As a consequence, the Company has withdrawn the private placement financing announced on June 20, 2017 for up to total gross proceeds of C$45 million.
The Company continues to look for oil and gas opportunities in Latin America and anticipates that trading in its shares will be reinstated on December 20, 2017.
On behalf of the Board of Oronova Energy Inc.
"Ralph Gillcrist"
President & CEO
About Oronova Energy Inc.
Oronova Energy Inc. is an international oil and gas exploration and production company currently focused on acquiring oil & gas development projects in Latin America. Oronova's strategy is to build a portfolio of early producing assets, that under a low cost operating approach, with associated exploration upside, will allow Oronova to create significant near-term and medium-term growth, whilst becoming a Central and South America low cost oil and gas producer, that operates to international EH&S and CSR standards and highest standards of corporate governance and ethical standards.
Forward Looking Statements and Legal Advisories
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking information, forward-looking statements and forward-looking financial outlook (collectively, "forward-looking statements") under the meaning of applicable securities laws, including Canadian Securities Administrators' National Instrument 51-102 - Continuous Disclosure Obligations. The use of the words "expects", "planned", "believes", "anticipates", "estimated", "will", "potential", "may", "continue", derivations of these words and similar expressions are intended to identify forward-looking statements. In particular, but without limiting the foregoing, forward-looking statements include statements regarding: expected cost savings and expense optimization resulting from Oronova's cost saving initiatives and future initiatives; exploration and production, drilling and testing expectations, including without limitation, the timing of operations, and expectations with respect to the results of drilling, testing and exploration activities; Oronova's planned capital program and the allocation of capital, including expected funding of the capital program from proceeds expected to be derived from fund raising activities, current production and gas/condensate price levels; Oronova's production expectations, projections and average production rates including the anticipated product mix of such production; Oronova's planned operations and the anticipated results of such operations, together with all other statements regarding expected or planned development, testing, drilling, production, expenditures or exploration, or that otherwise reflect expected future results or events. BOE production and reserve values are calculated on an Mcf to BOE conversion of 6 to 1. A BOE conversion of 6 to 1 is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Readers should not place undue reliance on the forward-looking statements contained herein. Further information on potential factors that could affect Oronova will be included in risks detailed from time to time in Oronova's filings. These filings will be available on a website: SEDAR at www.sedar.com. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date of this press release and Oronova 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 expressly required by applicable securities legislation.
SOURCE Oronova Energy Inc.
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