RE: Echo energy16 Jun 2022 09:48
accumulation in El Oculto structure.
Inorganic growth
Increased Participation in Santa Cruz concessions
As part of the business strategy aimed at maximizing flowing barrels, the Company has entered into an option with IOG Resources S.A. to acquire an additional 21.66% participating interest in the Santa Cruz concessions
where Interoil acquired its current 8.34% from Roch. The purchase price shall be validated by an independent expert and would be payable through a combination of issued shares and cash. In case that the acquisition is materialized Interoil would hold a total participating interest of 30% in all of the Santa Cruz concessions.
Work Over in Bajo Guanaco Block & Option to acquire from 10% to 20% participation interest in Vaca Muerta
Interoil has entered into a workover and option agreement with Argenta Energía S.A. (Argenta), an Argentine private E&P company, whereby subject to financial closing providing the funding and formalization of the Government approval to the agreement that grants to Argenta title to the block, Interoil shall repair at its own risk and cost an existing well in the Bajo Guanaco block, located in Vaca Muerta, Province of Neuquén, Argentina. The works shall be made with the view of producing hydrocarbons from a conventional formation and with an estimated intervention cost of US$ 357,000.
In consideration for the well repairment Interoil shall be granted (i) a right to collect 100% of the wells net sales up to a total of four times the aggregate amount spent in the well intervention, should the well repairment result in commercial production and (ii) an option to acquire a direct participating interest in the block and to be appointed as the block operator. The direct interest in the block to be purchased by Interoil in case the option is exercised shall range from a 10% participation to a 20% participation depending on the valuation resulting from an independent third party reserves valuation report. In the event that the option is exercised, Interoil shall pay Argenta a price of up to an amount of US$ 7,000,000 for the acquired participating interest in the block, of which up to the sum of US$ 2,000,000 shall be paid in cash and the balance through Interoil new issue shares up to a maximum of US$ 5,000,000 in shares.
The
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