Vista Energy has significantly expanded its footprint in Argentina’s prolific Vaca Muerta shale basin through a substantial acquisition. The company has finalized a deal to purchase Petronas’ 50% working interest in a key region of Vaca Muerta, known as LACh, for a total consideration valued at 1.5 billion USD.The financial terms of the acquisition include an upfront cash paymentofUS 900 million, followed by US$ 300 million in deferred cash payments. Additionally, as part of the transaction, Petronas will receive 7,297,507 American Depositary Shares of Vista Energy.
The LACh block spans across an extensive 46,594 acres situated within the highly productive black oil window of the Vaca Muerta shale formation. As of the end of December 2024, this region already had 247 wells actively producing hydrocarbons. Furthermore, data from the Argentine Secretary of Energy as of December 31, 2023, indicated that LACh held approximately 280 million barrels of oil equivalent (MMboe) in proved (P1) reserves, calculated at 100% working interest. During the fourth quarter of 2024, the LACh block demonstrated a robust production rate of 79,543 barrels of oil equivalent per day (boed) at 100% working interest, with a significant portion, 71,471 barrels per day (bpd), being crude oil, according to figures from the Argentine Secretary of Energy.
Vista Energy has conducted its own assessments and estimates that the LACh block possesses the potential for approximately 400 new well locations to be drilled within its existing inventory, also calculated at 100% working interest. The remaining 50% working interest in the LACh region is currently held by the Argentine national oil company, YPF S.A., which also serves as the operator of the block.
Miguel Galuccio, Vista’s Chairman and Chief Executive Officer, expressed his enthusiasm about the strategic benefits of this acquisition. “With this acquisition, we gain significant scale in Vaca Muerta with a premium block that has growing production and low operating costs, enabling the acceleration of our long-term plan and strengthening our free-cash-flow profile,” Galuccio stated.
He further elaborated on the financial and operational advantages, saying, “The acquisition both increases our profitability and enhances our portfolio of ready-to-drill locations in the core area of Vaca Muerta. Importantly, in the current global macro and oil price environment, we are consolidating a high-margin, low-breakeven asset, with strong synergies with our ongoing operation, reflecting our constructive long-term view on crude oil demand and supply dynamics. I firmly believe this represents a unique opportunity to create long-term value for our shareholders.”
SOURCE: Oilspot Suriname