Mexico presents a promising landscape for investment, especially in its expanding oil and gas sector. As a country rich in hydrocarbon resources, Mexico offers a wealth of opportunities in energy exploration and production. Recent energy reforms have opened the market to foreign investment, facilitating partnerships and driving technological advancements in the sector. The government's commitment to regulatory improvements and economic stability further enhances Mexico's appeal as an investment hub. Mexico is positioning itself as a competitive and attractive destination for investors in the oil and gas industry.
Mexico
Overview
Soledad Block
Corporation has entered into definitive agreements to acquire an initial 49% equity stake in Operaciones Petroleras Soledad S. de R.L. de C.V., a private oil and gas company in Mexico. This deal grants New Stratus the exclusive right to negotiate acquiring up to an additional 41% stake. The acquisition pertains to the Soledad block in Veracruz, Mexico, which is operated under a contract with Pemex Exploracion y Produccion.
Soledad Block Acquisition Highlights:
- Soledad Block: 124 km2 onshore eastern Mexico
- Term: initial term ending in July of 2039; will apply for a ten year extension
- Purchase Price: US$2 million for the initial 49% tranche
- Effective Date: Effective May 1, 2024, NSE is entitled to the economic interests, including production and cash flows therefrom, of being a 49% equity interest holder in OPS
- Commitment: NSE has agreed to fund capital expenditure requirements under the O&G Contract; maximum capital exposure of NSE under the facility at any point in time will be approximately US$12.5 million
- Project Reserves(1): Soledad Block proved reserves are estimated at 43.3 million barrels of oil equivalent (mmboe)
- Production(2): Soledad Block gross production is approximately 1,430 barrels of oil equivalent per day (boe/d)
- Second Tranche ROFR: NSE will have a ROFR to negotiate the second tranche of the Acquisition
Notes: (1) See Oil and Gas Advisory
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