New Stratus Energy Inc. entered into a share purchase agreement to acquire additional 14% working interest in Blocks 16 and 67 in Ecuador for $10.7 million.

New Stratus Energy Inc. (TSXV:NSE) entered into a share purchase agreement to acquire 14% working interest in Blocks 16 and 67 in Ecuador for $10.7 million on October 3, 2022. The total consideration for the transaction is approximately $10.7 million cash, subject to adjustment, which total consideration is comprised of a base purchase price of approximately $1.2 million; an estimated working capital adjustment payment of approximately $5.6 million; and an estimated carryforward recovery adjustment payment of approximately $3.9 million. Pursuant to the agreement, New Stratus will acquire an additional undivided 14% working interest in the service contracts for the Blocks.

Post-acquisition, New Stratus's working interest will increase from 66% to 80%. Completion of the transaction is subject to prior regulatory approvals, including authorization by the Ecuadorian Ministry of Energy and Mines and antitrust authorities. The transaction is subject to customary closing conditions and is expected to close on or before November 30, 2022.