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UncategorizedBruchou advised Vista in the acquisition of a 50% working interest in the Aguada Federal and Bandurria Norte concessions in Vaca Muerta

September 17, 2021
Bruchou advised Vista Oil & Gas, S.A.B. de C.V. in the acquisition of 50% non-operated working interest in the Aguada Federal and Bandurria Norte concessions, located in Vaca Muerta, Argentina.

The Company, through its subsidiary Vista Holding I S.A. de C.V., has acquired from ConocoPhillips Petroleum Holdings B.V.:

  • 100% of the capital stock of ConocoPhillips Argentina Holding S.A.R.L., a Luxembourg company that holds 95% of the capital stock of ConocoPhillips Argentina Ventures S.R.L.; and
  • 5% of the capital stock of ConocoPhillips Argentina, therefore effectively acquiring 100% of the capital stock in ConocoPhillips Argentina.
About the transaction

ConocoPhillips Argentina holds a 50% non-operating interest in the Aguada Federal and Bandurria Norte exploitation concessions. The Aguada Federal and Bandurria Norte exploitation concessions are located 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 of the Assets has been awarded by the Province of Neuquén with unconventional exploitation concessions that expire in 2050, has no remaining investment commitments and is operated by Wintershall Dea Argentina S.A., which holds the remaining 50% working interest in both concessions.

Under the terms of the transaction, Vista made no upfront payment and assumed the outstanding carry consideration amounting to US$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. At the date of this transaction, ConocoPhillips Holding had approximately US$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 US$25,000,000, which shall accrue interest at LIBOR plus 2% per annum and mature on September 16, 2026.

Through this transaction Vista has acquired 25,231 net acres, increasing its total acreage in Vaca Muerta to 157,853 acres. The Company has also added up to 150 new well locations to its Vaca Muerta portfolio, totaling up to 700 identified new well locations.

Aguada Federal

Aguada Federal is located in the black oil window of Vaca Muerta. Since 2017, a total of 6 horizontal wells have been drilled in this concession, all of which proved hydrocarbon production. Total production in Q2 2021 was 832 barrels of oil equivalent per day. There were no proved reserves booked at year-end 2020. The Company estimates there are up to 150 new well locations (gross) to be drilled in this block.

Bandurria Norte

Bandurria Norte is located in the volatile oil window of Vaca Muerta. Since 2017, a total of 4 horizontal wells have been drilled in this concession, all of which proved hydrocarbon production, prior to being shut-in in 2019. There were no proved reserves booked at year-end 2020. The Company estimates there are up to 150 new well locations (gross) to be drilled in this block.

Legal advisors of Vista Oil & Gas:

Bruchou, Fernández Madero & Lombardi

Partners Bazán, José María and Rodríguez Galli, Javier S.; and associates Dulce, Nicolás, Poliche, Ramón Augusto and Lannutti, Sonia.

Other relevant transactions in which we participate

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