On April 4, 2018, Vista announced the acquisition of a fully operational platform with certain conventional and unconventional assets, with interests in certain exploitation concessions, assessment blocks and exploration permits in Argentina. The majority of the Acquired Assets are located in the Neuquina basin. Vista is now estimated to be the fifth largest oil producer and operator, according to the latest available information published by the Argentine Ministry of Energy and Mining.
The acquisition contributes proved reserves of 55.7 MMBoe (based on information as of December 31, 2016); average daily production of 27,472 boed (based on information for the first nine months of 2017); in excess of 137,000 acres in the Vaca Muerta unconventional play, the most prominent unconventional formation in the Neuquina basin, including 54,000 acres in the core of Vaca Muerta’s shale oil window that are ready for full scale development.
After the Initial Business Combination, our objective continues to be generating attractive returns and creating value for our Shareholders through a disciplined development and acquisition strategy and the implementation of changes in the acquired assets looking to increase their value.
Our investment thesis in these countries is based on the combination of a favorable business environment derived from legislative and regulatory structural changes, potential for development upside and operational improvements, and leveraging dislocations between capital market and fundamental values, as well as other factors of which we could benefit in the short and medium term. We believe that success in acquiring and developing assets in Latin America requires a mix of technical expertise, operating and commercial experience, solid industry networks and proven leadership that spans across the region’s key energy resources and which we believe that both Riverstone and our Management Team possess. Additionally, we intend to maintain financial and operating flexibility to allow the Company to quickly capture attractive opportunities and effectively compete against other local or international companies in the industry.