The Argentina Market
SAHF Oil and Gas Exploration
SAHF’s primary focus is to make investments and divestments on behalf of Delta in Argentina. SAHF explored investments in oil and gas projects throughout Argentina during 2013, but none were deemed viable. Additionally, SAHF evaluated its current projects and concluded that it will: a) not pursue the official entry into the Guemes joint venture (which was drilled in 2010), b) divest from the Jollin and Tonono concesions, and c) remove itself from the Caimancito Refinery project and the Cachi-Coltan project.
In 2012, the company entered into a Cooperation Agreement with Principle Petroleum Limited (PPL) in which it agreed to sell 49-50% of its interests in Tartagal, Morillo and Valle de Lerma and 50% of its bidding rights in the areas of Selva Maria, San Salvador, Libertador, and Rivadavia for a purchase price of US$7,500,000. Also, PPL entered an agreement with the joint venture committees of Valle de Lerma, Selva Maria, San Salvador and Libertador to provide an aggregate amount of $10,000,000 in the concept of development funds. PPL has defaulted in its payments in all of the agreements and the companies are working towards a solution.
- – Tartagal & Morillo (Oil and Gas)
- – Valle de Lerma (Oil)
- – Guayatayoc (K-Li-B)
Table 1: Oil and Gas Blocks with Delta Mutual Participation
|Block||Province||Status||Delta %||Reserves||Approx. Value (US$)||Partner(s)||Investment|
|Tartagal Oriental||Salta||Seismic||18% CO||2.3MMm3||1500MM||New Energy (HK) Maxi||60MM|
|Morillo||Salta||Seismic||18% CO||1.4MMm3||1500MM||New Energy (HK) Maxi||60MM|
|Valle de Lerma||Salta||Work over||60%||Unknown||Grasta/ PetroNexus/ REMSA||500K|