SCOTTSDALE, Ariz., June 2, 2016 /PRNewswire/ -- Delta International Oil & Gas, Inc. (OTCQB: DLTZ)("Delta") has signed a memorandum of understanding with New Times Energy Corporation Limited ("NTE") on May 13, 2016. The memorandum will resolve all matters in prior contracts signed by both parties in the Tartagal Oriental and Morillo (TO&M) and Valle de Lerma (VL) oil and gas concessions.
The abovementioned memorandum provides that Delta, through its wholly owned subsidiary, South American Hedge Fund ("SAHF"), will sell its 18% ownership of the TO&M concessions to NTE for an additional sum of US$4M. The final contract is expected to be signed within 30 days of the memorandum. Currently, both companies are working diligently to fulfill all conditions necessary for closing by the time the final contract is signed. The memorandum was signed on behalf of NTE by the General Manager and by a Delta representative in Argentina.
NTE is in the final stages of importing its own drilling rig to further develop the TO&M concessions. NTE, through High Luck Group Ltd, currently owns 69.25% interest of the TO&M concession and will hold 87.25% following the completion of this MoU.
As this transaction is being finalized, Delta will also be looking to sell its stake in its remaining Argentina oil and gas property, Valle de Lerma. This series of transactions is expected to: 1) finish divesting Delta's interests in oil and gas exploration concessions in Argentina, and 2) free up capital in order to return value to its shareholders and invest in other areas with higher expected growth.
Forward Looking Statements
This press release contains forward–looking statements that involve risks and uncertainties, which may include statements about business strategy and development plans, plans for entering new business, anticipated sources of funds, including proceeds from future operations and plans, objectives, expectations and intentions contained in the Press Release that are not historical facts such as "estimated gross…prospective resources, will be sold, etc." Because these forward looking statements involve risk and uncertainties, actual results could differ materially from those discussed in the Press Release. These risks are outlined in our SEC filings.
Contact: Santiago Peralta
Delta International Oil & Gas, Inc.
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SOURCE Delta International Oil & Gas, Inc.