MBP Partners Abogados advised Centaurus Energy Inc. on the transaction
Centaurus Energy Inc. (TSXV: CTA) (OTCQB: CTARF). through its subsidiary in Argentina, Madalena Energy Argentina S.R.L., has entered into an agreement to sell its working interest in the Coiron Amargo Sur Este petroleum block o Pan American Energy, S.L., Argentine Branch, the operator of the block, and that the Company has exited its activity and involvement in Curamhuele, Palmar Largo, El Chivil and Coiron Amargo Norte.
Pursuant to the transaction with PAE, Centaurus will sell its remaining working interest (29%) in the Coirón Amargo Sur Este block (the Company previously sold 6% of its interest to PAE, see below), with an effective date of January 1, 2021, in return for consideration with a reference value of more than $51 million, including:
satisfaction of all amounts owed by the Company under the Loan Agreement between PAE and Centaurus, dated December 7, 2016 (the “Loan Agreement”), and termination of the Loan Agreement, and
payment to Centaurus, over time, of a 2.5% Overriding Royalty Interest (ORRI) over the net proceeds corresponding to the 29% interest being assigned to PAE, totaling $25 million.
The proposed assignment is subject to certain conditions precedent that are customary in this type of transaction.
MBP Partners Abogados advised Centaurus Energy Inc. with a team including Victoria Bengochea (Picture), Ignacio Meggiolaro and Martina Caunedo.
Law Firms: MBP Partners;
Clients: Centaurus Energy Inc.;