Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Argentina energy sector focused Andes Energia (LSE:AEN) plc announced today, it has secured 100% interests in four hydrocarbon licences in Argentina and one in Paraguay, boosting the companies 2P reserves and risked and unrisked prospective resources.
Acquisition Details
In a statement released to the public today, the power distributor and oil and gas explorer and producer acquired the entire stocks of AHI S.A., through a “share swap”, giving Andes Energia further 2P reserves of 5.9 million barrels of oil, risked conventional and unconventional prospective resources of 191 MMboe, and unrisked unconventional prospective resources of 8.1 trillion cubic feet of gas.
Following the acquisition, Andes Energia will acquire 100% “conventional and unconventional interests” in Los Buitres, Mina Baku, La Brea blocks, and the Agrio formation in the Neuquen basin in the province of Mendoza, Argentina as well as 40% carried interest in other formations in the El Manzano block, giving the company some 600,683 acres of additional acreage.
A 100% conventional and unconventional interest in the Repatriación block in Paraguay was also acquired, as part of the acquisition.
Andes Energia will issue 117,062,222 new shares of 10 pence each and 7,000,000 warrants to fund the acquisition, to be issued to International Capital Markets Group Chile S.A., Mezzo Trading International, Inc., Albor Group Ltd., and Sommers International Holdings, Inc., the shareholders of AHI S.A.
AHI was reported to have net assets of US$1.8 million as of 31st December 2011, with net current assets of $1.5 million and no debt.
In addition, an option to acquire the 1.9 million-acre Santa Rosa block also located in the same province was signed by Andes Energia for nearly $1 million, exercisable for a period of 60 days.
Director Comments
Ricardo Nicolas Mallo Huergo, Non-Executive Director of Andes Energia, commented on the acquisition:
“We are delighted at being able to complete this acquisition. These assets represent an enormous potential in conventional and unconventional resources. This consolidates Andes as a producer and operator and as a leader in properties in the Vaca Muerta formation in the Neuquen basin and as a pioneer in Paraguay to explore the Chaco-Parana Basin for both, unconventional and conventional resources. This move represents a diversification of our asset portfolio and provides Andes with solid platform from which to grow the E&P business.”
Company Spotlight
Andes Energia is a UK-incorporated energy group engaged in the production and distribution of electricity, as well as oil and gas exploration and production, operating primarily in Argentina.
Trading on the Alternative Investment Market of the London Stock Exchange since 2007, Andes Energia shares were 9.3% higher, gaining 3.75 pence to 44 pence a share, at 2:30 PM GMT.
References
↑ Company Overview
