Page 23 - LatAmOil Week 01 2021

LatAmOil NEWS IN BRIEF LatAmOil

Arrow Exploration closes on the Transaction were Gowling WLG (Can- is signed, the transaction will be subject to
ada) LLP (Stuart Olley) and Posse Herrera Ruiz CADE’s appreciation, at the time of the analysis
sale of LLA-23 block (Colombia) (Alvaro Rodriguez). of the Concentration Act, regarding the possible
impacts to the competition defense.
Arrow Exploration, December 30 2020
Arrow Exploration is pleased to announce The project is in a binding phase and the
the closing of the arm’s-length disposition the Petrobras closes equity subsequent stages will be disclosed to the mar-
LLA-23 Block to COG Energy, as previously ket according to the company’s Divestment
announced by the Company on August 24, interest in Sete Brasil Group Methodology.
2020. The gross proceeds from the Transaction, Gaspetro, December 30 2020
including customary closing adjustments, were Petrobras, following up on the release disclosed
approximately $12mn. on December 20, 2019, informs that its Dutch Petrobras concludes
The closing of the Transaction marks a subsidiary Petrobras Netherlands transferred,
significant step forward in Arrow’s strategic today, to companies of Sete Brasil Group, for the sale of Liquigás
alternatives process. The Strategic Process symbolic total amount of €7, the equity interest
was originally announced by the Company on of 15% that it held in each of the Dutch special Petrobras, following up on the press releases dis-
November 28, 2019, and has been steadfastly purpose companies controlled by Sete Brasil closed on November 19, 2019, and November
pursued by Arrow’s existing senior management Group: Arpoador Drilling, Marambaia Drilling, 18, 2020, informs that it has concluded today
team since their appointment in April 2020. Grumari Drilling, Copacabana Drilling, Leme the sale of the totality of its stake in Liquigás Dis-
Having closed the Transaction, Arrow Drilling, Leblon Drilling and Ipanema Drilling. tribuidora (Liquigás) to Copagaz-Distribuidora
expects to have a significantly strengthened bal- With the sale made today, Petrobras no de Gás (Copagaz) and Nacional Gás Butano Dis-
ance sheet. Arrow intends to focus its efforts on longer holds any direct or indirect equity interest tribuidora Ltda. (Nacional Gás).
the remainder of its assets in Colombia, includ- in the companies of the Sete Brasil Group. After fulfilling all the previous conditions,
ing the Tapir Block (Arrow 50%, contingent on Petrobras reiterates that the effectiveness of the operation was concluded with the payment
the assignment by Ecopetrol of such interest to the agreement with Sete Brasil is still subject to of BRL4bn to Petrobras, already with the prelim-
Arrow), the Santa Isabel Block (Arrow 100%) compliance with suspensive conditions to be inary adjustments provided for in the contract,
and the Ombu Block (Arrow 10%). implemented by January 31, 2021, as announced being part of this resource resulting from minor-
Marshall Abbott, CEO of Arrow, commented: on November 12, 2020. ity and relevant investment of Itaúsa in Copagaz.
“We are very pleased to announce the closing of Petrobras, December 30 2020 This disclosure is in accordance with the
the Transaction. The Company wishes to extend internal rules of Petrobras and with the special
its gratitude to all our stakeholders for their con- Petrobras comments on regime of disinvestment of assets by the federal
tinued support of Arrow, and for their patience mixed economy societies, provided in Decree
throughout the Transaction process. We also Gaspetro’s divestment 9.188/2017.
wish to thank Arrow’s staff, some of whom have This operation is aligned with the strategy of
joined COG upon closing of the Transaction, for Petrobras, following up on the release disclosed portfolio optimisation and the improvement of
their dedication to the Company. Arrow’s man- on November 30, 2020, regarding the divestment the company’s capital allocation, concentrating
agement and Board, including myself, remain of Petrobras Gás (Gaspetro), informs that it increasingly its resources on world-class assets
committed to creating value from the Compa- received on December 22, 2020 a letter from the in deep and ultra-deep waters, where Petrobras
ny’s asset base.” Administrative Council for Economic Defense has shown great competitive edge over the years.
The Company obtained TSX Venture (CADE) in which the agency attests that the con- Liquigás is a wholly-owned subsidiary of
Exchange and Colombian regulatory approvals tinuation of the company Compass Gás Energia Petrobras and is active in the bottling, distribu-
with respect to the Transaction. Although not (Compass) in the process of sale of Gaspetro tion and marketing of LPG in Brazil. The com-
required, the Company obtained the written does not characterise non-compliance with the pany is present in almost all Brazilian states and
approval, by way of a resolution, of sharehold- commitment agreement. has 23 operating centers, 19 warehouses, a road-
ers holding in aggregate greater than 50% of the Thus, the company decided to readmit Com- rail storage and loading base and a network of
Company’s common shares. pass to the divestment process, always valuing approximately 4,800 authorised resellers, having
The LLA-23 Block is situated in the Lla- its competitiveness, isonomy and impersonality. about 21.4% of market share.
nos Basin, approximately 245 km northeast of In case the share purchase and sale agreement Petrobras, December 23 2020
Bogotá, the capital city of Colombia. The LLA-
23 Block contains the Labrador, Leono, Pantro,
Tigro and Danes fields. The LLA-23 E&P Con-
tract with the National Hydrocarbons Agency
(ANH) was originally awarded as part of the
ANH’s Mini-Ronda 2008 land auction, with an
effective date of March 13, 2009.
The LLA-23 Block constituted approxi-
mately 27% of the Arrow’s corporate net acre-
age, approximately 28% of Arrow’s Proved &
Probable reserves (net) as of year-end December
31, 2019, and none of Arrow’s production at the
closing of the Transaction.
Arrow’s financial advisor on the Transaction
was Stifel FirstEnergy. Arrow’s legal advisors

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