Apco Obtains Concession Extension in Argentina
January 06 2015 - 4:10PM
Business Wire
Apco Oil and Gas International Inc. (NASDAQ:APAGF) announced
today that the Argentine province of Rio Negro has agreed to extend
the concession term for the company’s operation in the Entre Lomas
concession for 10 years. The Entre Lomas concession is extended to
Jan. 21, 2026.
Under the extension, Apco will pay a net bonus of $7.9 million
in January 2015 and spend approximately $57.6 million for
exploitation, exploration and public works commitments during the
remainder of the concession term. In addition, the provincial
production tax increases was increased from the current level of 12
percent to 15 percent beginning January 2015.
The Entre Lomas concession currently produces approximately
5,600 gross barrels of oil per day and 19.5 million gross cubic
feet of natural gas per day in the province of Rio Negro.
Apco has a 23 percent direct participation interest in the Entre
Lomas concession and a total combined direct and equity
participation in the concession of 52.79 percent including its
40.72 percent stock ownership interest in Petrolera Entre Lomas
S.A. Petrolera holds a 73.15 percent direct participation interest
and is the operator of the Entre Lomas concession.
“Apco has been investing in Argentina for over 40 years, and
this is an important step to continue that commitment into the
future,” said Michael Kyle, Apco’s president and chief operating
officer.
“The agreement extends the reserve life of our fields and
benefits the province through a continued stream of investments and
employment for local residents,” Kyle said.
About Apco Oil and Gas International Inc. (NASDAQ:
APAGF)
Apco Oil and Gas International Inc. is an international oil and
gas exploration and production company with interests in nine oil
and gas concessions and two exploration permits in Argentina, and
three exploration and production contracts in Colombia. More
information is available at www.apcooilandgas.com.
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and operations;
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and
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our competitors;
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and/or potential additional regulation of drilling and completion
of wells), environmental liabilities and litigation;
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hydrocarbon concessions granted by the Argentine government on
reasonable terms;
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and the availability and cost of credit;
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actual results to differ materially from those contained in any
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and do not intend to update the above list or to announce publicly
the result of any revisions to any of the forward-looking
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In addition to causing our actual results to differ, the factors
listed above may cause our intentions to change from those
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changes in our intentions may also cause our results to differ. We
may change our intentions, at any time and without notice, based
upon changes in such factors, our assumptions, or otherwise.
Investors are urged to closely consider the disclosures and risk
factors in our most recent annual report on Form 10-K filed with
the SEC and our quarterly reports on Form 10-Q available from our
offices or from our website at www.apcooilandgas.com.
Apco Oil and Gas International Inc.Media Contact:Kelly
Swan, 539-573-4944orInvestor Contact:David Sullivan,
539-573-9360