CruzSur Energy Corp. Announces First Quarter 2019 Operating & Financial Results

VANCOUVER, May 29, 2019 /CNW/ - CruzSur Energy Corp. (the "Company") (TSXV: CZR) announces it has filed its financial results for the three months ended March 31, 2019. All dollar values in this news release and the Company's financial disclosures are in United States dollars, unless otherwise stated. All production figures are measured in barrels of oil equivalent ("boe").

Financial Statements

Revenues for the period presented were obtained from the working interest in the Mariposa and KM8 Assets.

Highlights

Settlement and Assignment Agreement with YPF

In February 2019, the Company completed the Settlement and Assignment Agreement with YPF SA, the operator of the Llancanelo Asset, wherein both parties have agreed upon terms of assignment of the Company's 39% participating interest in the Llancanelo Asset to YPF. In return, YPF has released the Company from all existing and future financial obligations related to Llancanelo Asset operations.  This has resulted in the elimination of approximately $12.4 million of exploration and evaluation assets, $1.0 million of property, plant and equipment assets, $1.0 million of joint venture payables, $8.4 million in liabilities for cash calls assumed on acquisitions, $2.5 million in liabilities for considerations payable on acquisitions, and $1.6 million in decommissioning liabilities.

Mariposa

The Company holds a net working interest in the Estancia La Mariposa block of 18%, entitling it to 18% of the oil, natural gas and condensate sales, while the operator carries 100% of the capital expenditures and field operating costs. The net revenue figures associated with the Mariposa Asset are presented net of any applicable royalties and certain operating costs of transportation, treatment and processing. Oil and natural gas production is sold on behalf of the Company, for which the Company receives proceeds from the operator, net of the aforementioned royalties and operating costs. The net revenue generated from this asset has not been included in any "per barrel" pricing herein.

Mariposa Results	Q1 2019	Q1 2018
Net revenue	215,608	351,606
Net production boe	13,803	16,210

Financial Results & Balances

• The Company had a working capital deficiency of $1.7 million as of March 31, 2019

Financial Results	Q1 2019	Q1 2018
Cash and cash equivalents	1,508,485	10,387,628
Working Capital	(1,730,202)	(8,497,830)
Exploration and Evaluation Assets	7,372,900	77,040,381
Property, Plants, and Equipment	1,578,141	3,671,361
Total Assets	15,724,738	100,252,972
Net Oil and Natural Gas Production, boe	3,161	45,379
Net Oil and Natural Gas Revenue	171,889	2,270,243
Net Revenue on Carried Working Interest ^(1)	215,608	351,606
Royalty Expense	20,154	446,478
Operating Expenses	151,858	1,400,808
Net Operating Profit	215,485	774,563
Net Loss	829,538	1,975,398
Net Loss per Share, basic & diluted	(0.03)	(0.08)

Note:
(1)	Represents net revenue results from the carried interest held by the Company in the Mariposa Asset.

About CruzSur Energy Corp.

CruzSur Energy Corp. is a publicly traded E&P company focused on proven oil & gas plays in Latin America. The Company holds a large diversified portfolio of producing, development and unexploited assets in Colombia and Argentina where it will leverage its amplitude of technical expertise and proven track record building companies and creating value.

Complete reports and statements are available on SEDAR at www.sedar.com and on the Company website www.cruzsur.energy.

Forward-Looking Information

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release.  The information in this news release about the completion of the operations described herein, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms of such transaction.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company's inability to perform the proposed operations.

The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete the planned operations and activities. The Company has also assumed that no significant events will occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.

BOE Conversion Advisory

The term "boe" is used in this news release. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf : 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  In this news release, we have expressed boe using this standard conversion ratio of 6 Mcf : 1 bbl.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE CruzSur Energy Corp.

CruzSur Energy Corp., Ralph Gillcrist, CEO & President; Chris Reid, CFO, Tel: [phone]