NEW TIMES CORP (00166) sells oil and gas operations in the northeastern region of Argentina.

NEW TIMES CORP (00166) announced that the group operates the Los Blancos oil concession area in the province of Salta in northern Argentina through its wholly-owned subsidiary, HLG BVI (a company registered in the British Virgin Islands, including its Argentine branch). The group holds a 50% participating interest in the Los Blancos oil extraction, while Pampa Energa S.A. (NYSE: PAM) holds the remaining 50% interest. Following the grant of the concession rights by the provincial authorities in October 2020, the group has the right to produce crude oil (Argentina oil business) in Los Blancos for a period of 25 years. On December 31, 2025, the group's wholly-owned subsidiary, High Yield Holdings (Hong Kong) Limited, entered into a sales agreement with the independent third party, Lantau Tomorrow Development Inc. (buyer), to sell all the issued share capital of HLG BVI. The buyer's shareholders have been involved in related businesses in Argentina for the past 18 years and are familiar with the commercial environment in Argentina. The purchase price was determined after fair negotiation by both parties, considering the net worth of HLG BVI's assets, current market conditions, and the business prospects of the Argentina oil business. The sale was completed immediately on the date of the sales agreement, and HLG BVI is no longer a subsidiary of the group after the completion of the sale. Therefore, the financial information of HLG BVI and its subsidiaries will no longer be consolidated into the group's future financial statements. In addition, due to the sale, the group will cease its operations in the Argentina oil business. Through the sale, the group has fully disposed of all its assets in Argentina. The sale of HLG BVI aligns with the company's intention to exit the oil and gas business in northeastern Argentina. The sale is a strategic move for the group to streamline its operations, reallocate resources to other business segments, and reduce geopolitical and operational risks associated with the Argentina oil business.