Source: New Stratus Energy Inc.
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  • New Stratus Energy (NSE) has signed a letter of intent (LOI) with Baker Hughes Services International, S.A.S
  • New Stratus plans to invest about $200 million to drill/re-complete development wells on Blocks 16 and 67 in Ecuador
  • This follows the completion of negotiations with the Government of Ecuador to extend rights to the blocks through a production sharing contract
  • New Stratus and Baker Hughes are expected to subsequently enter into a preferred supplier agreement and a technical services agreement
  • New Stratus Energy Inc is a Canadian resource company involved in oil and gas
  • New Stratus Energy Inc opened trading at $0.97 per share

New Stratus Energy (NSE) has signed a letter of intent (LOI) with Baker Hughes Services International, S.A.S.

New Stratus, through Petrolia Ecuador S.A., as operator, plans to invest about $200 million in 2022 and 2023 to drill/re-complete development wells on Blocks 16 and 67 in Ecuador. This follows negotiations with the Government of Ecuador to extend rights to the Blocks through a production sharing contract.

The LOI will formalize New Stratus’ and Baker Hughes’ ongoing negotiations of one or more agreements governing the proposed strategic relationship with respect to the drilling program and the development of the Blocks 16 and 67 and other potential projects in the Eastern Basin of Ecuador.

The terms of the LOI set the official grounds for New Stratus and Baker Hughes to enter into a preferred supplier agreement and a technical services agreement.

The terms of the potential preferred supplier agreement may include the provision of services not limited to drilling, completion, intervention, abandonment of wells, and artificial lift systems from Baker Hughes to New Stratus.

The terms of the technical services agreement may include the technical evaluation of the reservoir, technical services and engineering support for drilling and work-over development campaign to New Stratus.

The completion of the transactions and matters contemplated in the LOI remains subject to New Stratus and Baker Hughes entering into definitive agreements and signatures of the preferred supplier agreement and/or technical services agreement; and the approval of all internal and potentially external regulatory authorities that may apply.

New Stratus Energy Inc is a Canadian resource company involved in the acquisition, exploration, and development of properties for the purpose oil and gas.

New Stratus Energy Inc. opened trading at $0.97 per share.

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