Business
Crown Point Energy and Centaurus Energy Enter into Term Sheet and Propose to Merge in a Stock-Based Business Combination to Create an Operationally Diversified, Financially Strong, Argentina-Focused Oil and Gas Production Company
Highlights Complementary, Scalable Oil Production Businesses Strengthen Combined Posit...
About this update from Crown Point Energy, Inc.
[{"type":"text","content":"Crown Point Energy and Centaurus Energy Enter into Term Sheet and Propose to Merge in a Stock-Based Business Combination to Create an Operationally Diversified, Financially Strong, Argentina-Focused Oil and Gas Production CompanyHighlightsComplementary, Scalable Oil Production Businesses Strengthen Combined Position in ArgentinaAccess to funding for upcoming Vaca Muerta oil production development in Coiron Amargo Sur EsteExpert management with international experience and deep local tiesOperational Efficiencies to Generate Cost SynergiesTransaction Closing expected early Q2 2021CALGARY, AB / ACCESSWIRE / January 7, 2021 / Crown Point Energy Inc. (\"Crown Point\") (TSXV:CWV), a Calgary-based oil and gas company with Argentine upstream conventional oil and gas assets, and Centaurus Energy Inc. (\"Centaurus\") (TSXV: CTA and OTCQB: CTARF), an independent, Canadian company focused on Argentine upstream oil and gas conventional and unconventional operations, are pleased to announce that they have entered into a non-binding term sheet (the \"Term Sheet\") in which they propose to combine their businesses (the \"Proposed Transaction\") and create an operationally diversified, financially strong, Argentina-focused oil and gas, exploration and production company (the \"Combined Company\"). It is currently intended that the Proposed Transaction be a 60/40 combination in favour of Crown Point, subject to adjustment following due diligence.The Combined Company would possess multiple conventional oil-producing assets, a marquee, in-production Vaca Muerta shale oil asset (Coiron Amargo Sur Este) and high-quality exploratory assets. The Proposed Transaction would bring together deeply connected and experienced industry, leadership and financial professionals inside Argentina and in North America with access to debt funding for upcoming development of Coiron Amargo Sur Este. The Combined Company would also benefit from operational efficiencies that are expected to lead to cost synergies.In connection with the Proposed Transaction, the leadership of the Combined Company would seek a local, Argentina-listing of the Combined Company's common shares.The signing of the Term Sheet has been unanimously approved by Crown Point's and Centaurus' board of directors.The Proposed Transaction is subject to a number of conditions, including the satisfactory c...