Vista Oil & Gas, S.A.B. de C.V. has acquired a 50% non-operated working interest in the Aguada Federal and Bandurria Norte concessions, located in Vaca Muerta, Argentina.
The Company, through its subsidiary Vista Holding I S.A. de C.V., has acquired from ConocoPhillips Petroleum Holdings B.V. (“ConocoPhillips BV”): (a) 100% of the capital stock of ConocoPhillips Argentina Holding S.A.R.L. (“ConocoPhillips Holding”), a Luxembourg company that holds 95% of the capital stock of ConocoPhillips Argentina Ventures S.R.L. (“ConocoPhillips Argentina”), and (b) 5% of the capital stock of ConocoPhillips Argentina, therefore effectively acquiring 100% of the capital stock in ConocoPhillips Argentina.
ConocoPhillips Argentina holds a 50% non-operating interest in the Aguada Federal and Bandurria Norte exploitation concessions (jointly, the “Assets”). The Aguada Federal and Bandurria Norte exploitation concessions are located in the Neuquina Basin in the Province of Neuquén, Argentina, covering a surface area of 24,058 and 26,404 gross acres, respectively, in the Vaca Muerta shale oil play. Each of the Assets has been awarded by the Province of Neuquén with unconventional exploitation concessions that expire in 2050, has no remaining investment commitments and is operated by Wintershall Dea Argentina S.A. (“Wintershall”), which holds the remaining 50% working interest in both concessions.
Under the terms of the transaction, Vista made no upfront payment and assumed the outstanding carry consideration amounting to US$77,000,000 which, on July 24, 2019, ConocoPhillips Argentina had agreed to pay to Wintershall by bearing 50% of Wintershall’s share in all capital expenditures corresponding to the Assets. At the date of this transaction, ConocoPhillips Holding had approximately US$5,900,000 in consolidated cash.
Concurrently, Vista and ConocoPhillips BV entered into an unsecured credit agreement, whereby ConocoPhillips BV shall make available to Vista, during a 24-month period, a loan for a principal amount of up to US$25,000,000, which shall accrue interest at LIBOR plus 2% per annum and mature on September 16, 2026.
Through this transaction Vista has acquired 25,231 net acres, increasing its total acreage in Vaca Muerta to 157,853 acres. The Company has also added up to 150 new well locations to its Vaca Muerta portfolio, totaling up to 700 identified new well locations.
“This is a unique opportunity to strengthen our position as one of the leading producers in Vaca Muerta”, commented Miguel Galuccio, Vista’s Chairman and Chief Executive Officer. “We are not only adding core assets to our existing portfolio, further enhancing our growth potential and shareholder value, but will also contribute our know how in efficient developments, as well as safe and sustainable operations.”