Americas Petrogas sells its Argentine subsidiary to Tecpetrol

Canadian exploration and production company Americas Petrogas has sold its subsidiary Americas Petrogas Argentina (APASA) to Tecpetrol International for C$77.6m ($63m).

The cash consideration of the deal is subject to adjustment in accordance with the terms of the sale agreement.

APASA will transfer some its assets to another Americas Petrogas’ Argentine subsidiary, Energicon, in connection with the sale.

The retained assets will include APASA’s stakes for Vaca Mahuida, Rinconada Norte, Loma Ranqueles, Huacalera and Totoral, Yerba Buena, Bajada Colorada.

Americas Petrogas will also retain 89% interest in GrowMax Agri, which holds phosphate, potash interests, and other minerals in Bayovar, Peru.

Americas Petrogas president and chief executive officer Barclay Hambrook said: "We are pleased with the agreement that has been reached with Tecpetrol, a strong partner dedicated to the exploration, production, pipeline transportation and marketing of hydrocarbons in Argentina.

"The cash will allow the Company to expand its activities on its retained conventional and unconventional properties.

"As well, Americas Petrogas and Tecpetrol intend to jointly consider investment opportunities in Latin America in the future."

Based in Calgary in the Alberta province, Americas Petrogas, operates 14 blocks spread over more than 2 million acres at Neuquén Basin in the country.

The firm had also discovered gas and natural gas liquids at Aguada Los Loros well in 2013.