Apco Oil and Gas International Inc. announced 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.
