New Era Group Holdings (00166) sells upstream oil and gas business in northeastern Argentina

According to Zhitong Finance App, New Era Group Holdings (00166) announced that the Group operates the Los Blancos concession area (Los Blancos) through its wholly-owned subsidiary, Gao Yun Group Co., Ltd. (“HLG BVI”), a company incorporated in the British Virgin Islands, and HLG BVI includes its branch in Argentina. The Group has 50% participation interest in Los Blancos oil extraction, while Pampa Energía S.A. (NYSE: PAM) holds the remaining 50% participation interest. After receiving a concession granted by the provincial authorities in October 2020, the Group has the right to produce crude oil in Los Blancos (oil business in Argentina) for a period of 25 years.

On December 31, 2025, Gao Yun Holdings (Hong Kong) Limited, a wholly-owned subsidiary of the Group, entered into a sales agreement with an independent third party, Lantau Tomorrow Development Inc. (the buyer), to sell all of HLG BVI's issued share capital. The buyer's shareholders have been engaged in related business in Argentina for the past 18 years and are familiar with the business environment in Argentina. The cost is determined after fair negotiations between the contracting parties, taking into account HLG's net asset value of BVI, the current market environment, and the business prospects of the Argentinian petroleum business.

The sale was completed immediately on the date of the sale agreement, and HLG BVI ceased to be a subsidiary of the Group after the sale was completed. As a result, the financial information of HLG BVI and its subsidiaries will no longer be consolidated into the Group's future financial statements. Furthermore, due to the sale, the Group will discontinue its petroleum business in Argentina. Through the sale, the Group has disposed of all of its assets in Argentina.

The sale of HLG BVI is in line with the company's intention to withdraw from the oil and gas business in northeastern Argentina. The sale constituted one of the Group's strategic initiatives to streamline its operations, reallocate resources to other business segments, and reduce the geopolitical and operational risks associated with the Argentinian oil business.