Vista Oil & Gas signs agreement to acquire oil and gas assets in Argentina

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.

Once the deal is completed, Vista expects to become a leading oil producer in Argentina.

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.

As 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.