TORONTO, July 16, 2020 (GLOBE NEWSWIRE) -- Claren Energy Corp. (“Claren” or the “Company”) (TSX-V: CEN) announces that it has entered into an Share Purchase Agreement (“Agreement”) with Lalea Energy B.V. (“Lalea”) to acquire its 100% participating interest in the Bobocu Production License, (“Bobocu”), onshore Romania
Under the terms of the Agreement, Lalea will assume the remaining contractual obligations with the Romanian government through the acquisition of 100% of Claren Operations Ltd., a wholly owned subsidiary of Claren. In consideration of which, Lalea will grant Claren an Overriding Royalty of 5% on produced gas during the economic field life of Bobocu. Lalea is committed to producing first gas within two years after the signing of the Agreement.
“We are pleased with Lalea’s commitment to develop the Bobocu gas field,” stated Henry Aldorf, Claren’s Chairman and CEO. “Claren and its shareholders will be able to participate in the upside of any gas production via our overriding royalty.”
Closing of the Transaction is subject to a number of customary conditions including, but not limited to the approval of the TSX Venture Exchange.
About Claren Energy Corp.
Claren Energy Corp. is an oil and gas company that has a (100%) participating interest in the Bobocu Production License, onshore Romania. Its common shares trade on the TSX Venture Exchange under the symbol "CEN".
For more information please contact:
Claren Energy Corp.
T: +1 647 302 0393
This news release contains forward-looking information relating to Claren's intentions to conduct the drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks.. Findings by other oil and gas issuers does not necessarily indicate that Claren will be successful in making such findings in Australia and Romania. In making such forward-looking statements, Claren has relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies and the availability of capital to Claren in order to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Claren may elect to, Claren is under no obligation and does not undertake to update this information at any particular time, except as required by applicable securities law. Neither the 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.