Petropuli owns a 50% participating interest in the Morichito Block located in the Llanos Basin, Colombia. On December 6, 2011 PTV Barbados entered into an agreement with Deep Core Inc., a private Cayman Islands oil and gas company with a focus in Central and South America, for the sale of the Petropuli capital to Deep Core. The Share Purchase Agreement was subsequently amended by amending agreements made December 16, 2011 and January 20, 2012.
Under the terms of the Share Purchase Agreement, as amended, Deep Core has agreed to acquire the Petropuli capital for an aggregate of US$1.75 million. Of this amount, US$800,000 has been advanced by Deep Core to fund outstanding cash calls owing by PTV Barbados in respect of Block SSJN-5, located in the Middle Magdelena Basin and will be repaid to Deep Core upon closing. An additional US$198,960.33 will be held by Deep Core to fund certain liabilities and transaction related costs. The balance of US$751,039.67 will be placed into escrow. US$200,000 of the funds held in escrow will be released in three months, and the balance will be released in six months, subject only to payments from the escrow proceeds that may be required to be made in respect of any undisclosed past obligations of Petropuli, or liabilities arising from the non-delivery of certain post-closing deliverables.
The sale does not include Petropuli's 25% participating interest in Block SSJN-5, which will be transferred to a Petro Vista affiliate. Upon completion of the Transaction, PTV Barbados will be released from its obligations under the Advance Payment Agreement with Deep Core, previously announced on December 19, 2011, and Deep Core's security over Block SSJN-5 and PTV Barbados' rights in the La Maye Block will be terminated.
Closing of the Transaction has been extended by the parties and will only occur if and when the conditions precedent contained in the Second Amendment are satisfied by PTV Barbados or waived by Deep Core. There is no certainty if or when the conditions precedent will be satisfied or waived and the Transaction will complete. In the event the Transaction does not complete, the Company will need to reevaluate the future prospects for Petropuli.
https://www.oilvoice.com/n/Petro_Vista_provides_update_on_the_Sale_of_Its_Interest_in_Morichito_Block/b1b4b66b615f.aspx