Vintage Petroleum agrees to acquire producing properties in Argentina

Vintage Petroleum Inc., Tulsa, agreed to acquire producing properties in the San Jorge basin of Argentina from Rio Alto Resources International Inc., Calgary, for $36.4 million.

June 29, 2004

By OGJ editors

HOUSTON, June 29 -- Vintage Petroleum Inc., Tulsa, agreed to acquire producing properties in the San Jorge basin of Argentina from Rio Alto Resources International Inc., Calgary, for $36.4 million.

Vintage agreed to acquire 100% of a wholly owned Argentine subsidiary of Rio Alto Resources. The principal asset is an operated concession covering 54,000 acres in the north flank of the basin.

The transaction is anticipated to close Aug. 13, subject to approval of Rio Alto's shareholders and normal due diligence. Current net production attributable to the Bella Vista Oeste concession is estimated at 1,900 b/d of oil and natural gas liquids from 50 producing wells.

Vintage believes the properties contain significant workover, drilling, and waterflood potential.