Petro Vista announced that its wholly-owned Barbados subsidiary, Petro Vista Energy Colombia (Barbados) Corp., has signed an agreement (the "Agreement") with Deep Core Inc. ("Deep Core"), a private Cayman Islands oil and gas company with a focus in Central and South America, for the sale of all of the issued capital of Petropuli Ltda. ("Petropuli"), Petro Vista's indirect wholly-owned Colombian subsidiary. Petropuli owns a 50% participating interest in the Morichito Block located in the Llanos Basin, Colombia.
The sale of Petropuli is the first step in Petro Vista's business plan to rationalize its Colombian oil and gas interests with the goal of focusing on the development of its Tartaruga producing asset in Brazil.
Under the terms of the Agreement, Deep Core will acquire Petropuli for the following consideration:
The total value of the sale to Petro Vista is approximately US $4.85 million. The sale does not include Petropuli's 25% participating interest in Block SSJN-5 in the Middle Magdelena Basin, Colombia, which will be transferred to a Petro Vista affiliate following closing.
In announcing the transaction, Petro Vista Chairman, Keith Hill commented, "The sale of the Morichito property cleans up our balance sheet and allows us to focus on development of the Tartaruga field and the drilling of two high impact exploration wells in Colombia and Brazil."
The proceeds from the sale will be used to fund continued exploration and development activities on the Tartaruga Field in Brazil including work-overs of the existing producing wells and the addition of down-hole pumps, and pre-drill costs in the SSJN-5 Block in Colombia. Plans are underway to drill at least one exploration well and one additional producing well in the Tartaruga field in Brazil in the first half of 2012.
The Transaction is scheduled to close on December 14, 2011.
The completion of the transaction is subject to all necessary regulatory approvals and approval of the consortium members to the change of control of Petropuli. The Company is in the process of applying for these approvals.
The farm in and corresponding assignment to the Company's Brazilian subsidiary of a working interest in the Tartaruga Block, Brazil is subject to several conditions, including approval from the consortium members and the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP").
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