Pampa Energia, Argentina raises over $400 mln for Vaca Muerta campaign

Pampa Energia, a natural gas producer in Argentina, announced a $410 million debt issuance on Friday. This demonstrates investor confidence as the company expands its operations in the Vaca Muerta shale in the country.

The massive shale deposits, where state-owned YPF, Vista Energy and other competitors are investing, is a bright point in the ongoing economic crisis of South America, marked by triple-digit rates of inflation.

Pampa said that its new debt will be due in 2031, and it was issued with a 7.95% coupon.

The company is the third largest gas producer in the western Argentina Neuquen Basin, which contains Vaca Muerta - one of the world’s largest shale gas and oil reserves.

Argentina hopes that greater investment in Vaca Muerta will increase production at home, boost exports and reverse a long-standing energy deficit largely caused by expensive crude oil and natural gas imported.

Pampa’s activity in Vaca Muerta is about 8% of total formation area and 90% of current production is natural gas.

According to a statement, the debt issue will allow it to finance development of the Rincon de Aranda oil field.

Over $1.7 billion was bid on the oversubscribed tender. This included international investment funds. Reporting by Eliana Razewski, Writing by Brendan O'Boyle, Editing by David Alire Garcia

(source: Reuters)