New Stratus Energy Inc. (TSXV:NSE)Energy
New Stratus Energy Inc., earlier known as Red Rock Energy Inc., is an oil and gas-focused energy company interested in natural resources in Latin America. New Stratus is a public energy firm incorporated in April 2015 with its stock listed on the TSX Venture Exchange where its ordinary shares are traded under the trading symbol NSE.
The Alberta-based firm is engaged in the identification, acquisition, exploration and development of hydrocarbon resources located in Colombia. Currently, the firm is at an exploration stage and likewise, any oil and gas business is subject to risks and volatility of the market.
The company operates the VMM-18 Project situated along the well-known hydrocarbon trend Puli and Dindal-Rio Seco within the prolific VMM Basin. The VMM Project is equipped with a pipeline network and roadways that link the block to the proximate sales points.
In addition, the availability of oilfield services and a competent operational workforce adds to the infrastructural advantages of the project. New Stratus, reportedly, spent US$ 4.2 million on exploration programs that are completed while only US$ 3 million is still to be utilized for exploration and drilling work for further development of the block.
With low lifting and transportation expenses, the company expects high netbacks from the sale of oil products and a lucrative breakeven of approximately US$ 25.00/bbl of brent oil. The company’s management through its exploration discovered three highly prospective targets:
• Hercules Prospect – it is a Puli type play with a total depth of 4,000 feet.
• Hercules North Prospect – It is similar to the Hercules Prospect with 4,000 feet in total depth.
• Cigarra Prospect – it is a sub thrust play with a total depth of 11,000 feet.
Out of these, two prospects are drill-ready. In addition, there are certain oil plays like Cardenal Lead (sub thrust type with 11,000 feet TD) and two Cimarrona plays with substantial upside potential.
New Stratus possesses an experienced management team with a proven track record of exploration and evaluation of oil and gas assets in Latin America. The company is aiming for oil and gas producing properties in Colombia, Ecuador, Peru and Venezuela.
Additionally, it is targeting various upstream and midstream opportunities to expand its hydrocarbon business to exploit secondary market capabilities. It is also looking forward to future bidding rounds, friendly license terms and direct negotiations with governments. It is focused on the exploration and development programs to enhance its oil production capabilities to pursue market opportunities.
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