Americas Petrogas modifies oil plus benefits

American Petrogas Inc. recently confirmed that it has modified oil plus benefits according to the company’s terms of the Agreement of Purchase and Sale between Americas Petrogas, Tecpetrol Internacional S.L. and Tecpetrol International S.A.

According to the agreement, any proceeds gained from the Argentina Oil Plus program must be collected by Americas Petrogas Argentina S.A., the subsidiary of the company. This must be accomplished before the common shares sale of APASA to its Purchasers, as stated by the Sale Agreement.

The initial $4 million of Net Oil Plus Amounts gained by APASA from and after the closing will be used to pay Americas Petrogas 50 percent of further Net Oil Plus Amounts. These amounts must be collected within the first 18 months after the initial $4 million is gained from Net Oil Plus Amounts and the first 24 months after the sale closes.

After the sale is closed, all of the Net Oil Plus Amounts for Americas Petrogas will be evaluated and then paid every quarter. The agreement outlines the payment and allocation for the Net Oil Plus Amounts between Tecpetrol and Americas Petrogas.

Earlier, Americas Petrogas released its Discuss and Analysis from its management for the first quarter of 2015. Now the company has applied through APASA to gain approximately $16.9 million in Oil Plus Benefits. As of the end of March, this has not been acknowledged in the financial statements.