Stamper Oil & Gas Corp. Signs Option on Production and Exploration Blocks in Colombia
VANCOUVER, British Columbia, April 25, 2017 (GLOBE NEWSWIRE) -- Stamper Oil & Gas Corp. (TSX.V:STMP) (OTC:AZUEF) (FSE:TMP2) ("Stamper" or "the Company"), is pleased to announce that Stamper Oil & Gas Corp., has entered into an option Farm-in Agreement (the "Definitive Agreement" or "Farm-in") with Green Power Corporation S.A. ("Green Power" or "Owner") of Bogota, Colombia. Stamper can acquire up to a 75% interest in JOROPO Oil and Gas Concession located in the department of Casanare, Llanos Basin, Colombia (the "Concession").
The Agreement is conditional upon the satisfactory completion by Stamper of due diligence on the Concessions, and Green Power has granted Stamper an exclusivity period of forty-five (45) days to perform such due diligence.
The Joropo Concession is located in the Llanos Basin which is a foreland sub-andean basin located between Andean Cordillera Oriental and the Guyana Precambrian shield. The sedimentary record in the Llanos basin is composed of Cretaceous and Tertiary rocks, consisting of Palaeozoic and igneous metamorphic rocks.
About the Joropo Concession
An independent 51-101 report on the concession was provided by the Owner and prepared by Petrotech Engineering Ltd. The Joropo Concession consists of two blocks, the development and the exploration blocks. An oil discovery was drilled on the development block, which is the Ojo de Tigre-2 ST well. The well was preliminary tested, and test-produced 6,972 barrel of 29.5° API crude at a steady rate of 240 bopd.
Proved nonproducing reserve is assigned to the formation at 7,363' in the Ojode Tigre-2 ST well using a recovery factor of 25% for proved reserve. Proved + probable reserve is assigned with a recovery factor of 35%. The structural mapping of the formation has a closure of 279 acres and can support additional development of two wells.
On the exploration side, from 3-D seismic data and interpretation, the Owner has identified two well prospects. The Turon Prospect shows three potential oil zones in the C7, Mirador and Gachetá formations. The Joropo Norte Prospect shows the C7 and Mirador formations are potential oil zones.
Green Power has a 100% working interest and is the operator of the JOROPO Block under the exploration and production contract Joropo (E&P Joropo). The contract area is 14,966 hectares (36,982 acres) and the E&P Joropo Contract was signed by the Agencia Nacional de Hidrocarburos - Colombia (ANH) with Green Power. The Concession is located in the Department of Casanare, Colombia in a major oil producing region of Colombia close to major oil fields, close to pipelines, and is located in an area where the land owners permit oil and gas exploration and development.
Option Agreement Terms
Stamper will earn its 75% interest in the Concession by making the necessary phase one expenditures. Stamper will hold in trust, 90% interest in all further work completed on the Concession until it earns one and one-half time (1 1/2) invested capital after which time it would retain 75% interest.
Subject to satisfactory completion of due diligence by the Company, Stamper and Green Power will execute a Heads of Agreement (the "HOA") which will provide the groundwork for a Definitive Agreement which would be completed within 45 days after the Due Diligence period. Upon the execution of the Definitive Agreement, Stamper will prepare an updated 51-101 on the Concession.
The Option Agreement and final Definitive Agreement are subject to the acceptance of the transaction by the TSX Venture (the "TSX.V") including the satisfaction of any conditions imposed thereon by the TSX.V.
David Greenway, President of Stamper commented, "We believe Colombia is a jurisdiction where our shareholders could realize significant returns on their investment dollars. The government of Colombia has pro-business policies and favourable regulatory schemes with regards to the oil and gas extraction industry. The country has also seen a massive reduction in terms of security risks and social unrest under the current administration and in light of the peace deal signed last year between FARC and the Colombian government. I am very pleased with the signing of the option agreement as a first step in building shareholder value of Stamper. With oil pricing getting stronger and economy and oil market improving overall the company feels posed to make a financial impact in rest of 2017."
About Stamper Oil & Gas Corp.
Stamper Oil & Gas Corp. (TSX.V:STMP) is an independent international oil and gas company, engaged in the acquisition, exploration and development of conventional oil and natural gas properties. The Company plans to identify and build out a portfolio of high-impact oil and gas prospects, with a focus on Latin America. Stamper is committed to creating sustainable shareholder value by evaluating and developing future prospects into commercially viable assets.
For further information on Stamper Oil & Gas Corp. please visit www.stamperoilandgas.com
ON BEHALF OF THE BOARD OF DIRECTORS
"David C. Greenway"
President & Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that 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 statements that may be deemed "forward-looking" statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Stamper Oil and Gas Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Stamper Oil and Gas Corp. management on the date the statements are made. Except as required by law, Stamper Oil and Gas Corp. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
For further information, please contact:
Stamper Oil & Gas Corp. Investor Relations
Phone: (604) 684-2401