Interoil acquires five exploitation concessions in Argentina
Oslo, January 11th 2020 – Interoil Exploration and Production ASA (“Interoil”) is pleased to announce that it has closed an agreement with ROCH S.A. (the “Seller”), an independent Argentinian oil company, for the acquisition of an 8.34 per cent participating interest in five mature producing exploitation concessions (the “Santa Cruz Sur Assets”) in the heart of the Argentinean Austral Basin for a total consideration of USD 1 million payable in new Interoil shares (the “Consideration shares”).
The Santa Cruz Sur Assets are located onshore in the heart of the Austral Basin in southern Argentina. This is a highly prolific area with well-developed oil and gas infrastructure. The total operated production of these concessions amounts to around 3,000 boepd (25% is oil) and 2P reserves to exceed 6 million barrels of oil equivalents (Mmboe), with significant exploration potential upside.
This transaction brings material operated production to Interoil’s portfolio while enhancing untapped low risk exploration potential.
“For Interoil this is another important step in building a more diversified asset portfolio. A year ago, our upstream activities were only located in Colombia. In the last twelve months Interoil acquired three concessions in Argentina and with this most recent transaction, we are adding producing assets that generate cash flow from day one and which hold significant amounts of proven and probable reserves”, says Hugo Quevedo, Chairman of the Board of Directors of Interoil.
Transaction details
The number of Consideration Shares is 4.045.539 and has been determined by the volume-weighted average market price in the 21 calendar days immediately preceding November 8th, and the currency exchange rate at the day prior to closing.
The decision to issue consideration shares will be made by the Board of Directors in accordance with authorisation granted by shareholders at the annual general meeting on 27 June 2019. A separate announcement will be made once the share capital increase related to the issuance of the Consideration shares has been registered with the Norwegian Register of Business Enterprises.
The Seller has agreed to enter in a lock-in in respect of the Consideration Shares that provides for a three months lock-in period in respect of 50 per cent of the Consideration Shares and a further three months lock-in term in respect of the remaining 50 per cent. of the Consideration Shares.
Facts about the Santa Cruz Assets
- The Santa Cruz Assets consist of 12 oil and gas fields with significant production from Upper Jurassic Tobifera and Lower Cretaceous Springhill.
- There are 83 wells in the Santa Cruz Assets, including 72 producers and 11 water injectors.
- There are no pending exploration investment commitments agreed for the respective licenses, and capex requirements for 2020 are expected to be low.
- Significant potential to further increase production including through a program of new drillings and workovers.
- Upcoming Campo Limite exploration well (CLi-x1001) providing potential upside.
- The other license holders are Echo Parties, which are subsidiaries of Echo, a company listed in the London Stock Exchange AIM, that recently, in a separate transaction, acquired a 70 per cent interest in the Santa Cruz Assets from Phoenix Global Resources, and IOG Resources S.A., a subsidiary of Integra Oil & Gas which acquired 21.66 per cent from Roch.
- Selva Maria Oil will be appointed operator until Interoil has been granted the operator licence from the Argentinian government.
Please direct any further questions to:
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Interoil Exploration and Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin America. The Company is operator of several production and exploration assets in Colombia and Argentina. Interoil currently employs approximately 50 people and is headquartered in Oslo.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
