Pampa Energía sells PELSA stakes to Vista

BUENOS AIRES, January 17, 2018 – Pampa Energía has agreed to sell its 58.88% stake in a joint venture company it owns with Pluspetrol to Vista Oil & Gas for USD 360 million, the company said in a statement on Tuesday.

The deal allows Vista to establish a presence in the unconventional Vaca Muerta play through E&P player Petrolera Entre Lomas (PELSA). Additionally, the agreement includes Pampa Energía’s own 100% stakes in the Medanito Sureste and Jagüel de los Machos licences, and 3.85% shares in the Entre Lomas, Bajada del Palo and Agua Amarga blocks.

“This transaction is in line with the company’s strategy to focus its investments and human resources on the expansion of power generation installed capacity, on the exploration and production of natural gas, placing a special focus on the development and exploitation of our unconventional gas reserves (shale and tight gas), as well as to continue investing for the development of our utility concessions,” Pampa Energía’s statement said.

Vista’s shareholders must approve the terms of the acquisition before the deal can be finalised.

PELSA is currently the seventh-largest oil producer in Argentina, with an output of 8,365 bopd from its eponymous block in the Neuquén Basin. The company also extracts about 1.5 mcm (53 mcf) of gas per day, placing it among the country’s top 10 gas producers.

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