Vista Oil & Gas SAB de CV has acquired a 50% interest in the Wintershall Dea Argentina SA-operated Aguada Federal and Bandurria Norte concessions in Vaca Muerta, Argentina from ConocoPhillips.
Vista, through its subsidiary Vista Holding I SA de CV, acquired from ConocoPhillips Petroleum Holdings BV: 100% of the capital stock of ConocoPhillips Argentina Holding SARL, a Luxembourg company that holds 95% of the capital stock of ConocoPhillips Argentina Ventures SRL, and 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 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 has been awarded by the Province of Neuquén with unconventional exploitation concessions that expire in 2050, has no remaining investment commitments.
Through the deal, Vista has acquired 25,231 net acres, increasing its total acreage in Vaca Muerta to 157,853 acres. The company added up to 150 new well locations to its Vaca Muerta portfolio, totaling up to 700 identified new well locations.
Aguada Federal lies in the black oil window of Vaca Muerta. Since 2017, 6 horizontal wells have been drilled, all of which proved hydrocarbon production. Total production in second-quarter 2021 was 832 boe/d. There were no proved reserves booked at yearend 2020. Vista estimates there are up to 150 new well locations (gross) to be drilled in the block.
Bandurria Norte lies in the volatile oil window of Vaca Muerta. Since 2017, 4 horizontal wells have been drilled in the concession, all of which proved hydrocarbon production, prior to being shutin in 2019. There were no proved reserves booked at yearend 2020. Vista estimates there are up to 150 new well locations (gross) to be drilled in the block.
Under the terms of the deal, Vista made no upfront payment and assumed the outstanding carry consideration of $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 (OGJ Online, July 25, 2019). At the date of this transaction, ConocoPhillips Holding had about $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 $25,000,000, which shall accrue interest at LIBOR plus 2% per annum and mature on Sept. 16, 2026.