- Centaurus Energy Inc. (CTA) has closed an agreement with Gasener SRL to acquire Madalena Energy Argentina S.R.L.
- Gasener has acquired subsidiary asset Madalena Energy Argentina for a purchase price of US$20,000 and will assume all liabilities with respect to the subsidiary
- As a result of the transaction, Centarus has transferred all its conventional oil and gas assets and related liabilities to Argentina
- This transfer included upcoming drilling commitments to Gasener while retaining an established overriding royalty interest
- Centaurus Energy Inc. (CTA) is unchanged, trading at $0.95 per share as of 2:58 p.m. EST
Centaurus Energy (CTA) has closed an agreement with Argentinian hydrocarbon trading company, Gasener SRL, to acquire Madalena Energy Argentina S.R.L.
Under the agreement, Gasener has acquired subsidiary asset Madalena Energy Argentina for a purchase price of US$20,000 and will assume all liabilities with respect to the subsidiary.
Previously, Centaurus acquired Madalena Energy Argentina’s interests in an outlined overriding royalty interest. This agreement closed in March of last year, which included the payment to Centaurus of 1.25 to 2.50 per cent over the net proceeds corresponding to the 29 per cent interest assigned to Pan American Energy, S.R.L., Argentine Branch.
The interest is payable in semi-annual instalments and included other considerations which totalled US$16.83 million.
The overriding royalty interest was acquired in exchange for the assumption and extinguishment of the intercompany debt owed by Madalena Energy Argentina to Centaurus. In addition, a debt obligation of approximately US$260,000 owed to David D. Tawil was assumed by Centaurus.
As a result of the transaction, Centarus has transferred all its conventional oil and gas assets and related liabilities in Argentina, including sizable upcoming drilling commitments, to Gasener while retaining the overriding royalty interest.
Centaurus Energy Inc. (CTA) is unchanged, trading at $0.95 per share as of 2:58 p.m. EST.
