Vista Oil & Gas has announced that its subsidiary Vista Oil & Gas Argentina has sold its 10% working interest in the joint venture agreement over the Coirón Amargo Sur Oeste ('CASO') concession to Shell Argentina, a subsidiary of Royal Dutch Shell, for a total consideration of US$21,500,000, payable in the following manner: (i) US$15,000,000 in cash, and (ii) US$6,500,000 as carry for the extension of infrastructure works for the collection and supply of water, which is operated by Shell and supplies Vista’s operation.
The Province of Neuquén, by means of Decree 1027/2021, dated June 24, 2021, has approved the addendum to the JV agreement, reflecting the new working interests in such JV in accordance with the aforementioned transaction. With the issuance of the Decree all agreed conditions precedent have been fulfilled; therefore, Vista and Shell shall determine a closing date for the transaction, which must take place within the next 5 business days. Once closed, the transaction shall have retroactive effect to April 1, 2021.
The CASO concession holds 16,440 acres in the shale oil window of Vaca Muerta, of which 1,644 acres correspond to Vista’s 10% working interest, which will be assigned to Shell at closing. Currently, CASO is under field development, having completed its pilot phase in 2019. Total hydrocarbon production for the year 2020, at Vista’s 10% working interest, was 94 boe/d (barrels of oil equivalent per day). Vista’s total proved reserves in CASO as of December 31, 2020, were 1.5 MMboe (million barrels of oil equivalent) according to the report prepared by DeGolyer and MacNaughton Corp. dated February 1, 2021.
