: MARANTA E&P CONTRACT
| Working interest : |
100%
(reducing to 80% under farmout agreement, subject to ANH approval) |
| Location : |
Caguan Putumayo Basin |
| Area : |
365 sq.km |
| Contract period : |
Contract awarded in September 2006, exploration period of up to six years, initial production period of up to 24 years per field |
| Operator : |
Emerald Energy |
The Maranta block lies in the Caguan Putumayo basin in the south-west of Colombia. The Maranta Contract has been awarded by the ANH, the National Hydrocarbon Agency of Colombia, and a copy of the model contract terms can be found on the ANH website (www.anh.gov.co).
The block is adjacent to nearby producing oil fields and close to recent discoveries that have tested oil up to 4,000 barrels per day. The Umbria No.1 well was drilled in the Maranta block in 1967 and encountered oil in the Villeta formation. There may also be potential to re-enter this well to further test the formation productivity.
A 71 kilometre 2D seismic data acquisition programme was conducted in 2007 and, in 2009, the Mirto No.1 well has been drilled to a depth of 11,578 feet with oil and gas shows recorded across the target horizons. The Company has now commencing a period of evaluation.
The Company has entered into a farmout agreement with La Cortez Energy Inc. (“La Cortez”) under which La Cortez will earn a 20% working interest in the block, subject to the approval of the ANH, by paying 60% of the historic exploration cost and 65% cost of the drilling and production testing of the Mirto No.1 well.
If Emerald elects to enter the third exploration phase, the minimum work programme includes the drilling of one well.
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