Interoil Exploration and Production has stepped up its exploration activity in Colombia by signing an agreement for the drilling of up to two explorations wells in LLA-47 onshore block.
The agreement has been signed with Colombian drilling services company SLS and E&P firm Quantum Resources.
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Under the agreement, SLS and Quantum Resources will cover 60% of the drilling cost and will retain a 22% stake in the wells.
Interoil plans to commence drill activity at the Jaca.x-1 and Malevo.x-1 exploration prospects soon.
Located in the prolific Llanos Basin, the LLA-47 exploration block covers an area of 447km².
As per Interoil estimates, the Jaca.x-1 well has prospective resources of up to 4.0 MMbbls, with a 30% probability of success.
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By GlobalDataDrilling at the Jaca.x-1 well will target the Carbonera formation.
A twin exploration well to Vikingo.x-1, the Malevo.x-1 well has the Gacheta formation as the primary exploration target.
Additionally, the well will target the Carbonera formation to optimise its development.
As per the exploration commitment at LLA-47, Interoil will drill a total of nine wells by February 2022.
Interoil said in a statement: “If any of the wells result in commercial discovery and production, 55% of the net oil operating income (oil sales after royalties and operating and lifting costs) will be allocated to repay the investments, 40% Interoil and 60% SLS and Quantum Resources. The remaining 45% will be split as per equity interest.”
Upon reaching investment pay-out, the net oil operating income is planned to be split as per equity interest, with Interoil holding a 78% share.
Moreover, Interoil decided to invest in the re-opening of the remaining 19 wells in the Mata Magallanes Oeste (MMO) oil field in Argentina.
Interoil CEO Leandro Carbone said: “Interoil recognises that the Jaca.x-1 and Malevo.x-1 exploration prospects are very promising and should untap potential oil resources that could be transformative to Interoil’s future production profile.”
Carbone said that the re-opening of the wells at MMO would further unlock valuable barrels in Argentina.
