Americas Petrogas receives Argentina bonds related to oil plus benefits

Americas Petrogas, Inc. said Sept. 21 that it has received approximately $1.4 million in bonds from Tecpetrol International as part of the agreement to sell Americas Petrogas Argentina S.A. (Apasa) to Tecpetrol in August.

The $1.4 million in bonds is part of the oil plus benefits that were collected by Apasa.

Under the agreement, Petrogras expects to collect $5 million until 2017. The bonds are part of a larger issue by the Argentina government in settlement of the oil plus benefits which were previously applied for by Apasa.

"Management is pleased to receive this additional funding which further strengthens the company's cash and financial investments position," Petrogas Americas CEO Barclay Hambrook said. "Going forward with a debt-free balance sheet, the company will restructure itself, re-evaluate the exploration and development of retained assets and consider new investment opportunities in the Americas with a focus on generating sustainable cash flows. These investment opportunities include GrowMax Agri, which is Americas Petrogas' majority-owned subsidiary that holds a large concession with phosphate, potash fertilizer potential at Bayovar in northwestern Peru."