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Andes saddles up Argentine trio



By Upstream staff 

Andes Energia has signed two options to take a 50% stake in the Vega Grande oilfield, as well as 20% slices of the Corralera and Mata Mora blocks, all in Argentina's onshore play.

The producing Vega Grande field lies in Mendoza province, Andes said.

It has paid an initial $1.3 million to secure the option on the 50% stake, which will be refunded if the option is not exercised.

Andes said a further payment of $9.2 million will be payable in cash upon exercise of the option with possible further consideration payable in Andes shares depending on the level of reserves discovered.

If Andes goes through with the deal, the final owners of the field will be Andes (50%), Petro Saudi (24%) and Grecoil y Cia (26%).

Andes will pay $480,000 in cash should it exercise its option to take 20% stakes in the Corralera and Mata Mora blocks, both in the prolific Neuquen province play.

The company added it expects to shell out about $1.2 million over three years at the blocks. gas has already been found at Corralera, Andes added.

Should Andes exercise its option, the final owners will be Andes (20%), Ketsal (18%) and Kilwer (62%).

Andes boss Luis Alvarez Poli said: "Vega Grande will give us existing production in an under-managed and under-exploited field, whilst Corralera and Mata Mora will give us the opportunity to enter the Neuquen province in blocks with tested production."


Tuesday, 27 November, 2007, 09:54 GMT  | last updated: Tuesday, 27 November, 2007, 09:54 GMT

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