News:Talisman Columbia & Pacific Rubiales(PEG.T)
Pacific Rubiales Awarded Two Blocks in Colombian Heavy Oil Bidding Round
Thu Jul 17, 5:39 PM
TORONTO, July 17 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PEG.TO) announced today that it has been awarded Blocks CP-1 and CP-6 in the Heavy Oil Round for the Llanos Basin of Colombia, organized by the Agencia Nacional de Hidrocarburos de Colombia (ANH).
A 100% interest in Block CP-1 has been awarded to Pacific Rubiales. This block has an area of 989,963 hectares and is located in the northern part of the basin on the border with Venezuela, east of the giant Canon Limon Oil Field. Block CP-1 is also located at the eastern limit of the Arauca Technical Evaluation Area, where the company is already performing exploration activities. The total investment for this block will be US$31.1 million, which will be spent on the acquisition of 410 kilometres of 2D seismic and the drilling of one stratigraphic and three exploratory wells, to be performed within 24 months from the signature of the contract.
Block CP-6 was awarded to a consortium formed by Pacific Rubiales and Talisman Energy Colombia, in which each company will have a 50% working interest, with Pacific Rubiales acting as the operator. This block has an area of 608,247 hectares and is located to the southwest of the Rubiales Oil Field and the Quifa Association Contract. The total investment for this block will be US$49.4 million, to be spent on acquiring 636 kilometres of 2D seismic and the drilling of one stratigraphic and five exploratory wells. These activities must be completed by the company within 24 months from the signature of the contract.
The company has already executed the bidding round minute and the company expects that the ANH wil sign the definitive contracts by mid-August, 2008.
Commenting on the outcome of this bidding process, Ronald Pantin, Chief Executive Officer of the company, stated "We are very pleased with the results of the bidding round because it validates our strategy and confirms our commitment to develop heavy oil in Colombia. These properties fit well into our portfolio and our area of expertise."