WASHINGTON, DISTRICT OF COLUMBIA — Tuesday, July 6, 2021 — DHS Group, a leading independent and private equity firm in the oil and gas industry, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil and Chile, today announced further expansion in the Neuquen basin in Argentina with the acquisition of Los Palmeros block in partnership with TMX, the largest oil and gas producer in Argentina.
Los Palmeros is an attractive, high-potential block located in the Mendoza Province and covers an area of approximately 366,000 acres (1,480 sq km) with seismic coverage (100 sq km of 3D and 800 sq km of 2D seismic), near other producing fields.
The block was awarded to TMX in the Mendoza bidding round on May 31, 2020. In accordance with the partnership agreement between TMX and DHS Group, and subject to customary regulatory approvals, DHS Group will receive a 50% non-operating working interest (WI) in Los Palmeros block in exchange for a commitment to fund its 50% WI of one exploration well and additional 3D seismic. DHS' total financial commitment is approximately $126 million over the next three years.
Los Palmeros expands DHS Group's seven block, 2+ million acre platform in the prolific Neuquen basin, with significant conventional and unconventional exploration potential within the Grupo Neuquen and Loncoche formations. Geoscience evaluation is ongoing and field operations are expected to start-up in late 2018 or early 2019.
TMX is the largest oil and gas producer in Argentina, with participating interests in more than 100 development concessions and more than 20 exploration permits in the most attractive basins in Argentina.
Fernando Aguirre, Vice Chairman of DHS, said: 'We are very pleased to have the opportunity to partner and work with TMX in Argentina and to be adding more high-potential, valuable acres in the Neuquen basin, where our team knows the rocks and has a great track-record of finding oil and gas. This type of low-cost, bolt-on acquisition in a prolific hydrocarbon basin - in partnership with the national oil company - exactly fits DHS Group's playbook and demonstrates the growing strength, reach and benefits of our regional Latin American platform.'
Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ''anticipate,'' ''believe,'' ''could,'' ''expect,'' ''should,'' ''plan,'' ''intend,'' ''will,'' ''estimate'' and ''potential,'' among others.
Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including preliminary production test results and expected growth for DHS Group and Latin America's under-developed hydrocarbon potential. Forward-looking statements are based on management's beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.
Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the U.S. Securities and Exchange Commission.
Steven Palmer, Vice President of Communications
Shareholder Value Director - DHS Group