Sherritt Provides Update on its Oil and Gas Operations
Sherritt International Corporation (“Sherritt”) (TSX:S):
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sherritt International Corporation (“Sherritt”) (TSX:S) today announced that it has extended the timetable for its current
activities on Block 10 to the first quarter of 2018. The decision allows the Company to evaluate drilling results completed to date
and determine its best option to reach the target Lower Veloz reservoir, in which a discovery well drilled in 1994 had briefly
tested at a rate of 3,750 barrels of oil per day.
“While we had expected to complete drilling on Block 10 before end of year, we have decided to take a prudent approach instead
of pushing ahead given the challenges we have experienced in the lost circulation zone above the target reservoir,” said David
Pathe, President and CEO of Sherritt International Ltd. “We expect to resume drilling in the New Year after we have evaluated our
options and determined our best course of action. Our recent experience has not changed our view about Block 10’s potential.”
Block 10 is an oil and gas exploration concession licensed for 25 years under a Production Sharing Contract (PSC) between
Sherritt and Cuba’s state oil company, Cubapetroleo S.A. (CUPET). Block 10 covers an area of 261km2 in the Bay of
Cardenas located on Cuba’s north coast.
Lost circulation zones may be encountered during drilling operations. In these zones, drilling fluids, which are pumped into the
well, feed into rock formations instead of returning to surface. Cement and other materials are regularly used to plug off the lost
circulation zone so that drilling can continue. The presence of lost circulation zones adds complexity to drilling operations.
Sherritt also announced that negotiations are in progress with CUPET to extend the PSC for the Puerto Escondido and Yumuri PSC,
which is set to expire in March 2018. Sherritt’s PSC for Vardero West, which expired in November 2017, has reverted to the Cuban
state.
About Sherritt
Sherritt, which is celebrating its 90th anniversary in 2017, is the world leader in the mining and refining of nickel
from lateritic ores with projects and operations in Canada, Cuba and Madagascar. The Corporation is the largest independent
energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its proprietary technologies
and provides metallurgical services to mining and refining operations worldwide. The Corporation’s common shares are listed on the
Toronto Stock Exchange under the symbol “S”.
Forward-Looking Statements
This press release contains certain forward-looking statements. Forward-looking statements can generally be identified by the use
of statements that include such words as “believe”, “expect”, “anticipate”, “intend”, “plan”, “forecast”, “likely”, “may”, “will”,
“could”, “should”, “suspect”, “outlook”, “projected”, “continue” or other similar words or phrases. Specifically, forward-looking
statements in this document include, but are not limited to, statements set out in this press release relating to estimated timing
of future events.
Forward-looking statements are not based on historic facts, but rather on current expectations, assumptions and projections
about future events, including matters relating to the matters disclosed herein; availability of governmental, regulatory and third
party approvals; and the ability to achieve corporate objectives, goals and plans. By their nature, forward-looking statements
require the Corporation to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that
predictions, forecasts, conclusions or projections will not prove to be accurate, that those assumptions may not be correct and
that actual results may differ materially from such predictions, forecasts, conclusions or projections.
The Corporation cautions readers of this press release not to place undue reliance on any forward-looking statement as a number
of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations,
estimates or intentions expressed in the forward-looking statements. These risks, uncertainties and other factors include, but are
not limited to the risks and uncertainties set out the Corporation’s Annual Information Form dated March 28, 2017, which is
available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive and should be
considered in conjunction with the risk factors described in this press release and in the Corporation’s other documents filed with
the Canadian securities authorities.
The Corporation may, from time to time, make oral forward-looking statements. The Corporation advises that the above paragraph
and the risk factors described in this press release and in the Corporation’s other documents filed with the Canadian securities
authorities should be read for a description of certain factors that could cause the actual results of the Corporation to differ
materially from those in the oral forward-looking statements. The forward-looking information and statements contained in this
press release are made as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any oral or
written forward-looking information or statements, whether as a result of new information, future events or otherwise, except as
required by applicable securities laws. The forward-looking information and statements contained herein are expressly qualified in
their entirety by this cautionary statement.
Sherritt International Corporation
Joe Racanelli, 416-935-2451
Director of Investor Relations
Toll-Free: 1-800-704-6698
investor@sherritt.com
www.sherritt.com
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