: OMBU E&P CONTRACT
| Working interest : |
100% |
| Location : |
Caguan Basin |
| Area : |
300 sq.km |
| Contract period : |
Contract awarded in December 2006, exploration period of up to six years, initial production period of up to 24 years |
| Operator : |
Emerald Energy |
At award, the first phase of the exploration period was 11 months and the minimum work programme comprised the acquisition of 61 km of new 2D seismic data and the re-processing of 60 km of existing 2D seismic data. Emerald subsequently agreed with the National Hydrocarbon Agency of Colombia (“ANH”) to substitute the drilling of a well for the 2D seismic obligation and to extend the current period of the contract by 6 months to allow this well to be drilled. Following this agreement, the duration of the first phase of exploration became 17 months. If Emerald elects to enter the second phase, the minimum work programme includes the drilling of 1 well to an estimated depth of 5,000 ft.
A high materiality prospect, Capella, has been identified in the block using existing seismic and well data. Emerald estimates the unrisked prospective resource to be over 30 million barrels. The Payara #1 well was drilled in the structure in 1975 and recovered oil of between 11 and 14 API from the Mirador sands at a depth of less than 4,000 ft. The new activity programme is believed to be the most effective way to test the Capella prospect, following a detailed review of all the existing data. The well, planned for the first half of 2008, is intended to test the productivity of the prospect.
The Ombu 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).
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