Mexican-listed Vista Oil & Gas has agreed to buy an oil and gas platform from Pampa Energía and Pluspetrol Resources Corporation, along with interests in some exploitation concessions and assessment blocks in Argentina.
A significant part of the acquired assets are located in the Neuquina basin.
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Once the deal is completed, Vista expects to become a leading oil producer in Argentina.
Vista chairman and CEO Miguel Galuccio said: “With this transaction, we found the right balance of current profitable production and reserves – coupled with high-growth potential in Vaca Muerta, the most exciting emerging shale play globally – perfectly aligned with our vision.
“The platform and timing could not be better suited to start delivering on our plan of becoming the leading Latin American independent oil and gas company.”
Following the closure of the deal, Vista’s enterprise value would stand at $10 per share, equivalent to around $860m, and have an equity value of $960m.
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By GlobalDataAs part of the consummation of the deal, Riverstone Vista Capital Partners, an affiliate of Riverstone, has agreed to acquire an additional five million Series A Shares for $50m pursuant to a forward purchase agreement signed at the time of Vista’s initial public offering. Other investors have also agreed to buy ten million Series A Shares of Vista for $100m.
Along with an $650m initial public offering, these proceeds will take the total equity available to fund the deal to $800m.
Vista has also signed a commitment letter, following which a credit facility of up to $300m may be used as a backstop arrangement to complete the transaction.
If the backstop credit facility is not required, Vista then expects to be debt-free and have $100m of cash on hand to fund future drilling and acquisitions.
The deal is expected to close in April.
