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Petroamerica tagets low-side fault closures at Colombia’s Llanos Basin

22nd May 2014

Petroamerica Oil has announced that it has entered into a definitive agreement, subject to the approval of the National Hydrocarbon Agency of Colombia (ANH), with Pacific Stratus Energy Colombia (PSE), a wholly owned subsidiary of Pacific Rubiales Energy, to acquire a 50 per cent working interest in the Llanos-19 Block

Petroamerica tagets low-side fault closures at Colombia’s Llanos Basin
The LLA-19 block is strategically situated with respect to Petroamerica’s existing Llanos Basin blocks

This farm-in constitutes a key strategic acquisition for Petroamerica, targeting light oil in highly prospective low-side fault closures in the company’s core producing area. The LLA-19 block is strategically situated with respect to Petroamerica’s existing Llanos Basin blocks, bordering the Los Ocarros Block (50 per cent working interest) which contains the Las Maracas Field, the El Eden Block (40 per cent working interest) containing the La Casona and Rumi oil discoveries, and the El Porton Block (50 per cent working interest in the exploration area and 25 per cent working interest in the Curiara oil discovery).

The deal excluding the Tormento Field where PSE will retain its 100 per cent working interest.

Under the terms of the definitive agreement, Petroamerica has agreed to pay 100 per cent of the capital and operational expenditures of the next exploration well, up to a maximum amount of US USD 17m, to earn its 50 per cent working interest in the LLA-19 block. An application will be made to the ANH for their approval.

This strategic farm-in expands the Petroamerica’s presence in a highly prospective part of the Llanos Basin and provides exposure to a new play type that is gaining momentum in the Llanos Basin of Colombia, targeting low-side fault closures. Ready-to-drill prospects have already been de-risked by 3D seismic and an exploration well, Tierra Blanca Sur-1, drilled by Elf in 1985 on the edge of one of the prospects encountered well developed Gacheta reservoir sands with good oil shows and a log response suggesting oil pay.  Exploration drilling could occur as early as the fourth quarter of 2014. This acquisition, together with the recently announced proposed acquisition of Suroco Energy and its Putumayo Basin assets, significantly strengthens and diversifies the Petroamerica’s asset base.

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