document: On 22 May 2018, Vista Oil and Gas issued a press release indicated it farmed-in for a 50% working interest to three Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V. contracts acquired in the CNH-RO2-LO2/2016 and CNH-RO2-LO3/2016 Bid Rounds.Â  The contracts include the 349.0 sq km CNH-RO2-L03-CS-01/2017 and 95.20 sq km CNH-RO2-L02-A10.CS/2017 contracts in the Sureste Basin to be operated by Vista and the 72.40 sq km CNH-RO2-L03-TM-01/2017 contract in the Tampico-Misantla Basin to be operated by Jaguar.Â  The terms of the deal reported by Vista is that it will pay Jaguar USD 27.5 million and USD 10.0 million as an investment carry.Â  There will also be additional unspecified contingent payments based on oil price and operational performance.Â  Vista reported that an independent reserves evaluation carried out for the company calculated 1P reserves of 7.2 MMboe with the producing fields on the blocks currently producing approximately 500 bo/d.Â  The transaction is pending formal approvals by the CNH.    On 8 December 2017, Jaguar      Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V. signed the      contract with the CNH and was granted official final awards for the CNH-RO2-L03-TM-01/2017      contract from the CNH-RO2-LO3/2016 Bid Round.Â  The CNH-RO2-L03-TM-01/2017 contract is      also known as the Area 5, TM-01 block.Â       Jaguar formed a separate subsidiary, Jaguar Exploracion y      Produccion 2.3, S.A.P.I. de C.V. with 100% working interest as the      official designated operating company for the block.Â  The 72.40 sq km CNH-RO2-L03-TM-01/2017      contract has a total financial commitment of USD 42.2 million, USD 16.1      million in work commitments including two additional wells plus the      tie-break bonus of USD 26.10 million. Â On 12 July 2017 Jaguar      Exploracion was the high bidder in the CNH-RO2-LO3/2016 Bid Round for the      Area 5 block in the Tampico-Misantla Basin and was granted a preliminary      award. Â For      the 72.40 sq km Area 5 block Jaguar offered the maximum additional      royalties of 40% and 1.5 work unit factor equivalent to two additional      wells.Â  There were seven other bids      for the block and six offered the same royalties and work units so ended      in a tie.Â Â  Jaguar won the tie break      with a bonus bid of USD 26.1 million beating the 2nd      place bonus offer from DEP PYG who offered a bonus of USD 5.002 million. Â Jaguar has 100%      working interest in the contract.     On 8 December 2017, Jaguar      Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V. signed the      contracts with the CNH and was granted official final awards for the CNH-RO2-L03-CS-01/2017      and CNH-RO2-L03-CS-06/2017 contracts from the CNH-RO2-LO3/2016 Bid      Round.Â  The CNH-RO2-L03-CS-01/2017      contract is also known as the Area 9, CS-01 block.Â  The CNH-RO2-L03-CS-06/2017 contract is      also known as the Area 14, CS-06 block.Â       Jaguar formed a separate subsidiary, Jaguar Exploracion y      Produccion 2.3, S.A.P.I. de C.V. with 100% working interest as the      official designated operating company for the blocks.Â  The 95.20 sq km CNH-RO2-L03-CS-01/2017      contract has a total financial commitment of USD 66.19 million, USD 37.3      million in work commitments including two additional wells plus the      tie-break bonus of USD 28.89 million.Â       The 148.20 sq km CNH-RO2-L03-CS-06/2017 contract has a total      financial commitment of USD 33.4 million all for work commitments      including two additional wells.Â  On      12 July 2017, Jaguar Exploracion was the high bidder in the      CNH-RO2-LO3/2016 Bid Round for the Area 9 and Area 14 blocks in the      Sureste Basin and was granted preliminary awards.Â  For the 95.20 sq km CS-01, Area 9 block      there were eight other bids with seven offering the maximum additional      royalties and work units factor.Â  Jaguar      offered the maximum additional royalties of 40% and 1.5 work unit factor      equivalent to two additional wells.Â       It won the tie-break for the block with a bonus offer of USD 28.89      million after the second highest bid by Promotora y Operadora, and      Consorcio 5M offered a bonus of USD 10.12 million.Â Â  The Area 9 block was the most contested      in the bid round. Â For the 148.20 sq      km Area 14 block there were three bids.Â       Jaguar offered the maximum additional royalties of 40% and 1.5 work      unit factor equivalent to two additional wells.Â  It beat the second-place bid from      Perseus who offered 40% additional royalties but only 1.0 work units factor      or one well.Â  Jaguar has 100% working      interest in the contracts.     On 8 December 2017, the      consortium of Sun God Energia de Mexico, S.A. de C.V. / Jaguar Exploracion      Y Produccion De Hidrocarburos, S.A.P.I. de C.V. signed the contract with      the CNH and was granted an official final award for the CNH-RO2-L02-A10.CS/2017 contract from the      CNH-RO2-LO2/2016 Bid Round.Â  The      CNH-RO2-L02-A10.CS/2017 contract is also known as the Area 4 block.Â  The consortium formed a separate      subsidiary, Pantera Exploracion y Produccion 2.2, S.A.P.I. de C.V. with      100% working interest as the official designated operating company for the      block.Â  The 349 sq km      CNH-RO2-L02-A10.CS/2017 contract has a total financial commitment of USD      24.7 million, all for work commitments that includes two extra wells. On      12 July 2017, the consortium of Sun God Energy and Jaguar Exploracion was      the high bidder in the CNH-RO2-LO2/2016 Bid Round for the Area 10 block in      the Sureste Basin and was granted a preliminary award.Â  For the 349.00 sq km Area 10 block there      was one other bid.Â  The Sun God      consortium offered the maximum additional royalties of 25% and 1.5 work      unit factor equivalent to two additional wells.Â  It won the block after the second      highest bid by Perseus Exploracion was for 8.88% additional royalties and      0.0 work units or no wells.Â    The general license contract      terms include a 1st exploration period of two years with the possibility      of a two-year extension.Â  In the      case of a discovery the operator can request a two-year evaluation phase      for oil and a three-year evaluation phase for non-associated gas      discoveries once the evaluation plan is approved.Â  The total contract term is for 30 years      with the possibility of two five year extensions for a 40-year total      contract term from signature date. The base royalty rate is a sliding      scale royalty depending on type of hydrocarbon and oil price.Â  The values for oil range from 5% for USD      40/bbl oil to 25% for USD 200/bbl oil.Â       The relinquishment schedule is tied to exploration well      commitments.Â  If the exploration period      ends but the operator offers to drill an additional well it doesnât have      to relinquish any area.Â  If the      exploration period ends and the contractor doesnât have any discoveries it      must relinquish 100%.Â  If the      exploration period ends and the operator doesnât offer to drill an      additional exploration well it will have to relinquish 50% of the      area.Â  Local content during the      exploration period is 26% for the exploration and evaluation period, and      varies from 27% to 38% in the development period.
summary: Vista Oil and Gas issued a press release indicated it farmed-in for a 50% working interest to three Jaguar Exploracion y Produccion de Hidrocarburos, S.A.P.I. de C.V. contracts acquired in the CNH-RO2-LO2/2016 and CNH-RO2-LO3/2016 Bid Rounds.  