The stock market reacts positively to the initiative for a Paraguayan company in the search for oil in Chaco soil.
Again, a Paraguayan oil company began trading on the stock TSX Canadian Venture Exchange, by issuing $ 25 million in shares.
This company operates in the country, carrying out exploration work in Pirity block, within the Western Region of Paraguay or Paraguayan Chaco, and the financial transaction was made for the funding of exploration activities.
The first exploratory phase was completed and allowed to have historical information.
What it is worth noting is the fact that to start trading in the Canadian Stock Market makes Paraguay have now a good backup of the international market in oil exploration.
As it is, the first issue is usually the most difficult one, because all regulatory requirements of the capital market must be fulfilled, to capture investing public funds.
What is unusual and interesting at the same time is that the capital market bet on exploration, as normally invests in proven reserves. All this demonstrates confidence in the programs completed to date by the Paraguayan company and confidence of the stock market in Paraguay.
The scanned area is Pirity basin near the Argentine-Paraguayan border. The sub basin Pirity is a contiguous area of the sub basin Olmedo basin of Argentina, which has shown good production, and placed in a similar nearby Palmar Largo field, with reserves reported structure. The award Pirity is one of eight exploration concessions granted under the Act 779/1995, Paraguay's hydrocarbons.
The General Hydrocarbons Law provides that the exploration concessions include the exclusive right to explore the area granted for a term of four years, renewable for a period not to exceed two years, periods during which dealers agree to be bound program minimum of work and investment.
Exploration licenses will be awarded in batches of forty thousand acres each, up to a maximum area of eight hundred thousand acres; achieved if the last stage, the exploration, it will run for twenty years, but the Executive may, at the request of the grantee, extend the exploitation phase for up to ten years.
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