NGX Energy Divests its Argentinian Assets
Privately-held Compania Argentina de Comodoro Rivadavia Explotacion de Petroleo SA and Financier SA have entered into an agreement with NGX Energy International Corp. (formerly CruzSur Energy Corp.) to acquire its wholly-owned subsidiary, Alianza Petrolera Argentina SA.
Under the terms of the deal, the buyers will indirectly acquire NGX’s 79.06% operating interest in the Sur de Rio Deseado Este (SRDE) production block, 11.52% working interest in SRDE exploration block, and 18% working interest in Estancia La Mariposa, Lomita de la Costa and Cerro Mangrullo blocks (Mariposa asset). The transaction consideration consists of NGX receiving a 7.0% royalty on future production from SRDE blocks, capped at C$100,000. In addition, the purchasers shall assume all responsibilities for any existing and future liabilities.
The assets acquired cover a combined area of 97,399 gross acres in the Golfo San Jorge basin in the Santa Cruz province. The SRDE production block includes the Estacion Tehuelches, La Frieda and La Frieda Oeste fields, with oil production from a depth of approximately 2,800 feet. The SRDE exploration block is situated adjacent to the SRDE production area, and contains three exploration wells, namely Punta Bauza 1, PBX-1001 and EPaX.X-1. The Mariposa asset primarily targets the Comodoro Rivadavia and Mina el Carmen formations, and predominantly produces gas from the Estancia La Mariposa block.
This transaction represents the sale of all of Vancouver-based NGX’s Argentinian oil & gas assets. The company now plans to focus on the production and commercialization of natural gas in the Maria Conchita, SN 9 and Tiburon blocks in Colombia.