The Company acquired as a wholly-owned subsidiary, Pluris Energy Group Inc., a British Virgin Islands company, ("Pluris-BVI"), for the purpose of purchasing interests in quality assets with high growth potential in producing international oil and gas regions throughout the world. Pluris Energy holds non-operated revenue generating interests in international hydrocarbon production and development opportunity sets. Pluris Energy has additionally implemented a long-term investment strategy of developing energy efficiency technologies designed to help bridge the transition from world-wide hydrocarbon dependencies of traditional fossil fuel sources.
Our new name, Pluris Energy more accurately represents this dual or plural mandate of developing hydrocarbon assets as well as investments in the development of alternative energy-efficient assets. Pluris Energy's established, uniquely-positioned skill sets and core competencies in international business development; hydrocarbon exploration, operations and development; diverse corporate and operational financial strategies; and value-driven leadership principles, have successfully led to an aligned and focused redefinition of its business model to better exploit these competencies for the benefit of the shareholders of the Company.
Pluris Energy has entered into a Share Purchase Agreement ("SPA") to purchase 100% of the shares of San Enrique Petrolera, SA ("San Enrique"), an oil and natural gas production and development company located in Buenos Aires, Argentina. Terms of the SPA will be disclosed at a later date.
San Enrique's key assets are operated by the renowned company, ROCH, SA and consist of 65,646 net acres in the southern tip of Argentina's Tierra del Fuego region situated in the Austral Basin, an under-explored, income and export tax-free trading zone and 2,700 net acres in the Neuquen Basin, Argentina's most prolific oil and gas basin. These properties along with others in San Enrique's portfolio are considered to be prime area plays in the extremely prolific oil and natural gas producing regions of Argentina. Total net acreage to all of San Enrique's property interests currently consists of 251,376 acres.
The San Enrique development interests include proved producing reserves of approximately 2.0 million barrels of oil and 14.6 billion cubic feet natural gas with current net production of approximately 1,000 barrels of oil equivalent per day. Proved, probable and possible reserves are estimated at approximately 25 million barrels of oil and 142 billion cubic feet natural gas, or a total of approximately 49 million barrels of oil equivalent. An aggressive development mandate led by ROCH, SA is in place that will see the rapid expansion to peak production of the key San Enrique interests over the coming 24 to 36 month period.
Pluris Energy Chairman and Chief Executive Officer, Sacha H. Spindler stated, "I would like to thank San Enrique Petrolera, SA and Fenix Partners SA for the opportunity to enter into this transaction and I look forward to working with them in completing the acquisition." Fenix Partners SA, headquartered in Buenos Aires, Argentina, acted as financial advisor to San Enrique on the sale of the company.
Pluris Energy President and Chief Operating Officer, Sam Sen commented further by stating, "This transaction provides a platform for significant growth in Argentina. The country has sizable oil and gas reserves with under-explored potential, a skilled and hard working workforce, an improving economy with increasing energy demand, all of which add up to an excellent base for Pluris Energy to conduct and grow its business upon."
Consistent with Pluris Energy's mandate, San Enrique's portfolio is made up of highly attractive non-operated, producing oil and gas properties, with significant upside. Some of these are subject to preferential rights to purchase by existing owners. Due to the confidential nature of that information, Pluris Energy will provide additional background on the transaction after the preferential rights are cleared or exercised and the transaction is closed.
Argentina is the largest natural gas producer in Central and South America and second only to Mexico in natural gas consumption. To encourage investment in the under-explored Austral Basin in Tierra del Fuego, the Argentinean government has established an income-tax and export-tax-free zone, which makes the fiscal terms for investment very attractive relative to other parts of the world.
Pluris Energy-BVI is offering the Pluris Bond "A", a five year $65,000,000 financial instrument (the "Pluris Bond"), of which capital raised from the Pluris Bond will be utilized by the Company to purchase San Enrique as well as additional assets currently targeted for acquisition that fall within the Company's development mandate. We intend to list the Pluris Bond for trading on one of several internationally recognized bond trading exchanges. The Pluris Bond contains optional conversion privileges and mandatory conversion features into common shares of Pluris Energy predicated upon share price sensitivities, comprising a number of liquidity elements and variations of asset and equity participation for Pluris Bond owners.
Pluris Energy says that part of its focused international business development mandate, it has been in preliminary listing discussions with officials at the Oslo Bors stock exchange in Oslo, Norway. In this regard, the Company will be officially filing for the common shares of Pluris Energy to be registered for dual listing and clearing in Europe through an initial public offering on the Oslo Bors main market. Our anticipated listing on the Oslo Bors is targeted for the fourth quarter of 2006. Pluris Energy's common shares will continue to be publicly quoted in the United States.
The Oslo Bors is one of the fastest growing stock exchanges in the world, one which is oriented toward the value principles associated specifically within the energy industry. The Oslo investment community is oil and gas industry savvy, highly proactive and supportive in their involvement with international energy companies listed on the Oslo Bors. The Oslo investment community has deep access to international investment capital through its direct associations with the North American, European and other international financial communities. The Oslo Bors operates one of the most sophisticated market surveillance systems in the world on its own behalf and on behalf of the entire NOREX member stock exchanges, assuring investor confidence and corporate confidence alike. The majority of major European Banking institutions retain seats on the Oslo Bors.
Pluris Energy is pleased to announce that the Company has retained the services of Petroleum Listing Service of Houston, Texas to assess divestiture opportunities related to the sale of substantially all of the Company's Texas Gulf Coast assets. We anticipate the sale of our Emily Hawes and Tiller Ranch Fields to be completed by the fourth quarter of 2006. Upon closing of the sale of the Company's Texas Gulf Coast assets as described, Pluris Energy will no longer retain any further operations in the continental United States and intends to wind-up all operations of its wholly-owned subsidiary, Petrogen, Inc.
Pluris Energy Group Inc. is an international energy company engaged in the acquisition and development of non-operated producing oil and gas interests in international high profile development plays. Pluris Energy is also investing in the research and development of energy efficiency technologies aiming to help maximize the diversification of the world-wide energy grid.
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