Americas Petrogas Mulls Sale Following Shale Success
Americas Petrogas Inc. (BOE), the holder of more than 2 million acres in Argentine shale formations, is considering joint ventures, asset divestitures or a sale of the company.
The board has authorized management to review strategic alternatives following success in the Vaca Muerta shale and “recent industry inquiries concerning potential business opportunities,” the Calgary-based company said in a statement today. Jefferies Group LLC has been appointed its financial adviser.
Americas Petrogas operates 14 blocks in the Neuquen basin, which includes the Vaca Muerta, and announced in April it found natural gas and liquids in a well it owns there with Exxon Mobil Corp. Last month, Chevron Corp. (CVX) said it would spend $1.24 billion to help develop Argentina’s shale, which holds the world’s third-largest technically recoverable gas resource, according to U.S. estimates.
Americas Petrogas gained 7.3 percent to C$1.03 at 10:29 a.m. in New York. The shares have dropped 66 percent this year.
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