The first block, VMM 35 block, has an area of 7,704 hectares, and was awarded as a Type 1 E&P block carries an additional royalty of 1%. The 36-month first exploration phase includes the drilling of one exploratory well and the acquisition of seismic. This block has potential structures with API gravity of greater than 15 degrees.
While the second block, VSM 12 block, covers an area of 56,730 hectares, the third block, VSM 13 block, covers an area of 58,693 hectares. Both the blocks have the potential for structures with oil accumulation and API gravity of greater than 25 degrees.
According to Alange Energy, the total estimated net investment will be $4.2m, $5.2m, and $5.2m for VMM 35, VSM 12 and VSM 13, respectively, over the next three years. This exploration spending will be funded with operating cash flow starting in 2011 and is subject to ANH exploration regulations.
Alange Energy was earlier awarded two blocks, LLA 41 and COR 33, in the Llanos and Cordillera Basins, respectively.
Luis Giusti, CEO of Alange Energy, said: “We are very pleased to considerably increase our exploration potential through the addition of these blocks near existing producing fields in the Magdalena Basin.”
