TSXV:ART.H - Post by User
Post by
Baxter4on Oct 03, 2013 7:30pm
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Post# 21789638
Termination of Farm-Out Agreement in Colombia
Termination of Farm-Out Agreement in Colombia No great suprise here, Sagres has less money than Vast. Must be something about being a Forbes and Manhatten company that ensures failure.
Hopefully Vast will find a new farm-in partner.
Vast Announces Termination of Farm-Out Agreement in Colombia
19:00 EDT Thursday, October 03, 2013
TORONTO, ONTARIO--(Marketwired - Oct. 3, 2013) - Vast Exploration Inc. (TSX VENTURE:VST) has terminated the farm-out agreement (the "Agreement") entered into with Sagres Energy Inc. related to PUT-03, a 148,005 acre block located in the Putumayo Basin of Columbia (the "Block"). Vast successfully acquired the Block in June 2010 through a bidding round organized by the Agencia Nacional de Hidrocarburos of Colombia.
As per the terms of the Agreement, Vast farmed out a 90% interest in the Block to a subsidiary of Sagres Energy Inc. in exchange for retaining a 10% carried interest during the first exploration phase, which consisted of a minimum expenditure of USD$12.9 million over a period of 36 months.
Vast has recently identified several violations and breaches of representations and warranties contained in the Agreement primarily as a result of the financial standing of Sagres and the work program and obligations not being fulfilled. Vast has submitted a letter to Sagres identifying the various breaches and noting the termination of the Agreement. As a result of the termination of the Agreement Vast now holds a 100% interest in the Block.