Jagercor Energy has agreed to acquire 95% stake in oilfield operating company, Energia Compañía Petrolera Sociedad Anónima (ECP).
Based in Neuquen Province, ECP is an upstream oil and gas Argentinean operator, which currently runs El Sauce field with production of about 100 barrels of crude oil per day on behalf of the concession holder.
El Sauce is an exploitation concession situated in the southern side of the Neuquina Basin. It includes around 20 producing oil wells situated over a good quality reservoir.
The acquisition will allow Jagercor to expand its oil and gas fields operations in the Neuquina Basin of Argentina.
As per terms of the deal with a private vendor, Jagercor will purchase an indirect 95% stake in ECP. Jagercor’s Argentinean subsidiary Jager Energia Argentina (JEA) will provide new shares equal to a 40% equity interest to the vendor.
ECP is expected to be granted with the concession and cash funding to pursue the acquisition and initiate workover activity over the next year.
Jagercor director Henk van Alphen said: “The process of becoming a licensed operator in Neuquén Province is both time consuming and expensive.
Jagercor CEO Edgardo Russo said: “After a long period and a reorganization of the Board and Management Team; we were able to accomplish this step which puts us right back on course and helps to give surety to our business.
“Together with ECP’s staff we anticipate a quick growth pursuing several acquisitions, playing an important role in the game changing policy that the Argentinean government has initiated through all the tiers of the oil industry”