Interoil Exploration and Production announced that it has closed an agreement with Argentinian oil company ROCH for the acquisition of an 8.34 per cent participating interest in five mature producing exploitation concessions in the heart of the Argentinean Austral Basin for a total consideration of USD 1 million payable in new Interoil 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.
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. ■
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