Andes to merge with Argentina’s PETSA

South America-focused E&P company Andes Energía will merge with Trefoil, a 99.99% owner of Argentina’s Petrolera El Trébol (PETSA), to become Phoenix Global Resources, the UK junior said Monday.

Following the deal, Andes will be a 24.62% stakeholder in the newly-formed company, while Upstream Capital will hold the remaining interest. Both Upstream Capital and Trefoil are subsidiaries of Mercuria Energy Group. Mercuria already holds an 8% share in Andes Energía.

“We expect this agreement to generate operational synergies and create an independent leading company in the exploration and production of hydrocarbons, with a strong focus on Vaca Muerta,” Nicolás Mallo Huergo, current chairman of Andes Energía, said in a company statement.

The companies are expected to jointly invest USD 160 million to acquire and develop more Vaca Muerta acreage in 2018.

With the assets of Andes and PETSA combined, Phoenix’s total land holdings will span nearly 40,500 square kilometres and its reserves will be 60.9 million boe, with current output at more than 11,000 boepd.

The company’s most notable blocks include Chachahuén, Santa Cruz Sur and Puesto Rojas, in which a 400,000-boe discovery was made earlier this year.