omniture

New Times Energy Acquires 50% Participating Interest in Chirete Block, Province of Salta, Argentina

HONG KONG, April 15, 2015 /PRNewswire/ -- New Times Energy Corporation Limited ("New Times Energy" or "the Company", together with its subsidiaries, the "Group", HKSE stock code: 166) announces that the Company's Farm-in Offer has been accepted by Petrobras Argentina S.A. ("PESA") to transfer 50% of its Participating Interest in the Chirete Block to the Company.  

In consideration of the transfer, High Luck, a branch established in Argentina under High Luck Group Limited, an indirect wholly owned subsidiary of the Company, will perform, or cause to perform, the drilling, logging, testing and completion of an exploration well at a location designated by PESA, and pay all of the costs to be incurred of approximately US$8 million (equivalent to approximately HK$62 million). The consideration is expected to be funded out of the Group's internal financial resources.

The Chirete Block comprises an area of approximately 1,793 square kilometers located in the province of Salta, Argentina. PESA is currently the holder of the exploration permit for a term of two years commencing on 17 November, 2013 in connection with the exploration, development and production of hydrocarbons (including crude oil and natural gas) in the Chirete Block and is the sole owner of the Participating Interest. The Chirete Block is currently in its second exploration period and during which at least one Exploration Well is required to be drilled pursuant to the Contract.

High Luck will be in charge of the operations of the Chirete Block in respect of its exploration, development and production. Relevant profits derived from the sale of hydrocarbons produced will be allocated to the Company and PESA on a 50:50 apportionment basis.

Mr. Stewart Cheng, Chairman and Executive Director of New Times Energy, said, "The Group has been actively exploring opportunities to expand our business on the exploration and production of oil and gas resources, and we have certain presence in the northwestern basin of Argentina. We believe the agreement will enable the Company to gain a better understanding and knowledge of the local geology in Argentina and therefore generate a synergy that will benefit the Company during the exploration stage, not only in the Chirete Block but also in the other exploration blocks that the Company has in the northwestern basin of Argentina."

About New Times Energy Corporation Limited

New Times Energy Corporation Limited (HKSE stock code: 166) is an integrated natural resources company engaged in the acquisition, development and operation of oil & gas projects in Argentina, the U.S. and China. The Group's upstream oil & gas projects are located in geologically favorable regions in the Noroeste basin in the province of Salta and Formosa, Argentina and in the states of Texas, Louisiana, Utah and Alaska, the U.S. New Times Energy will continue to enrich its oil & gas portfolio through strategic mergers and acquisitions and actively look for opportunities to broaden the Group's income streams, aiming to deliver significant growth in cash flow and energy reserves.

Source: New Times Energy Corporation Limited
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