This block in the Llanos basin was won by the company during a bid round held in June last year.
Stetson has granted a 90% interest in the block to a wholly-owned subsidiary of Sagres Energy in consideration for Stetson retaining a 10% carried interest during the first exploration phase, which consists of a minimum expenditure of $9.5m over a 36-month period.
Currently, there is around 900km of 2D seismic data over this block and existing 2D seismic has identified a significant lead over this block.
The block carries an additional royalty of 1% payable to the Government of Colombia in addition to the basic royalty scheme established under Colombia law, being 8% for up to 5,000bopd of production and increasing to 25% for a 600,000bopd field.
Sagres will have an option to acquire Stetson’s carried interest in the block over the next 12 months at a mutually agreed price.
Stetson is an oil and gas company with exploration, development and production assets in North Dakota, US.
