Crown Point Energy Inc. and Centaurus Energy Inc. announced that they have entered into a non-binding term sheet in which they propose to combine their businesses and create an operationally diversified, financially strong, Argentina-focused oil and gas, exploration and production 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. The Proposed Transaction is subject to a number of conditions, including the satisfactory completion of due diligence by both parties, the negotiation of a mutually satisfactory arrangement agreement, and the receipt of shareholder, TSX Venture Exchange and court approval.

If the Proposed Transaction proceeds, it would be expected to close early in the second quarter of 2021. Further details regarding the Proposed Transaction will be provided if and when the conditions contained in the Term Sheet are satisfied and a definitive arrangement agreement is executed by the parties.