Pambili announces divestiture of legacy oil and gas assets
The disposal of Chinook and the associated ARO marks an important progression in Pambili’s migration away from its historic focus on oil and gas production, and toward a focus on gold mining in Zimbabwe.
CALGARY, Canada (Oct. 29, 2024) – Pambili Natural Resources Corporation (“Pambili“ or the “Company”) (TSX-X:PNN) is pleased to announce that Chauvin Energy Inc. (“Chauvin”), the purchaser of Pambili’s legacy Chauvin oil wells, has agreed to acquire the Company’s legacy Chinook oil wells, pipelines and surface leases (the “Chinook wells’) and their related Asset Abandonment and Retirement Obligation (“ARO”) liability for C$150,000 (the “Consideration”).
The Chinook wells were shut in at the end of March 2020 as a result of low natural gas prices at the time resulting from the effects of the COVID-19 pandemic, along with increased operational costs. Since then, Pambili has been carrying an estimated ARO of C$231,500 on Chinook.
Following the transfer of the licence and operatorship of the Chinook wells to Chauvin by the Alberta Energy Regulator (“AER”), the Consideration will be settled through the issuance of Pambili shares (“Shares”) to Chauvin. Subject to the acceptance of the TSX Venture Exchange the Shares will be issued under TSX Policy 1.1 “Discounted Market Price.”
The disposal of Chinook and the associated ARO marks an important progression in Pambili’s migration away from its historic focus on oil and gas production towards a focus on gold mining in Zimbabwe.
Jon Harris, Chief Executive Officer of Pambili Natural Resources, commented:
“The divestiture of the Chinook wells is significant because it crystallizes the ARO as a reduced and defined obligation to Chauvin. Pambili’s objective is to become a significant gold producer in Zimbabwe. We will achieve this by acquiring a portfolio of producing and near-producing gold assets and increasing low-cost gold production by implementing modern mining and processing technologies.
Removing legacy oil and gas obligations from our operations enables us to direct our financial and management resources toward meeting our company goals in Zimbabwe.”