Argo agreed to sell assets to Santa Fe Energy.

Argo, a Santa Monica-based oil producer operating under Chapter 11 of the U.S. Bankruptcy Code, identified the subsidiary of Santa Fe Southern Pacific as the buyer in its previously announced agreement to raise money to pay off Continental Illinois National Bank of Chicago, Argo’s principal creditor. Santa Fe Energy would pay $26 million for substantially all of Argo’s oil and gas assets, which are in California and Canada. It would also lend Argo $6 million, which the company would repay over a seven-year period, in order to regain a 20% interest in certain oil and gas properties. Argo said Continental Illinois hasn’t indicated whether it will agree to the plan.