Page 16 - LatAmOil Week 02 2021

LatAmOil ARGENTINA LatAmOil

Crown Point and Centaurus plan

merger to boost profile in Argentina

TWO Canadian companies have announced in North America with access to debt funding
plans to merge in order to strengthen their posi- for upcoming development of Coiron Amargo
tion in Argentina, where they are working to Sur Este,” the statement said.
develop conventional and unconventional oil It also noted that Crown Point and Centau-
and gas fields. rus hoped the new company would be able to list
The merger will involve Crown Point Energy its common shares in Argentina but did not say
and Centaurus Energy. In a joint statement, the when that might happen. The merger, however,
firms said they had entered into a non-binding is expected to wrap up early in the second quar-
term sheet that would allow them to combine ter of 2021, assuming that all due diligence is
their businesses on a proposed 60:40 basis, with performed and all necessary approvals granted,
Crown Point taking the larger share. it said.
They noted that the ratio might be adjusted Brian Moss, the CEO of Crown Point, said:
following due diligence but stressed that the “The proposed transaction would create an
tie-up would serve to “create an operationally organisation with the operational, managerial
diversified, financially strong, Argentina-fo- and financial capacity to be an important player
cused oil and gas, exploration and production in the Argentina upstream sector. The Coiron
company.” Amargo Sur Este is a world-class unconven-
When the transaction is complete, the result- tional asset that has the potential to provide the
ing entity will have multiple high-quality explo- combined company’s shareholders with profita-
ration and production assets – including the ble, stable growth for many years.”
Coiron Amargo Sur Este licence area, an uncon- Centaurus CEO David Tawil, who will
ventional field within the Vaca Muerta shale become the co-CEO of the new company,
formation that is already yielding crude oil. It added: “We are excited at the prospect of joining
will also benefit from increased operational effi- with Crown Point, an exemplary operation with
ciencies, as well and the involvement of “deeply pre-eminent cornerstone investors, to create an
connected and experienced industry, leadership outstanding Argentina oil and gas exploration
and financial professionals inside Argentina and and production company.” ™

The companies will work together to develop the Coiron Amargo Sur Este block (Image: Madalena Energy)

P16 www. NEWSBASE .com Week 02 14•January•2021