Shell Argentina SA, a subsidiary of Royal Dutch Shell, will purchase 10% working interest in the Coirón Amargo Sur Oeste (CASO) joint venture from PLC Vista Oil & Gas Argentina SAU, a subsidiary of Vista Oil & Gas, for a total consideration of $21,500,000.
The CASO concession holds 16,440 acres in the Vaca Muerta shale oil window. Vista’s 10% working interest is 1,644 acres, which will be assigned to Shell at closing. Currently, CASO is under field development, having completed its pilot phase in 2019. Vista’s share of hydrocarbon production for 2020 was 94 boe/d, and Vista’s total proved reserves in CASO were 1.5 MMboe as of Dec. 31, 2020.
Payment will be $15,000,000 in cash and $6,500,000 as carry for extension of infrastructure works for collection and supply of water, which is operated by Shell and supplies Vista’s operation.
Vista and Shell will determine a closing date for the transaction, which must take place within the next 5 business days. Once closed, the transaction will be retroactive to Apr. 1, 2021.
