Interoil Exploration and Production has signed two agreements in Colombia and Argentina to boost its production prospects in the regions.
The Norwegian exploration and production company has signed a farm-out agreement with SLS and Quantum Resources for the drilling of the remaining committed exploratory well (Mazorca) in the Altair block located in Colombia.
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Interoil estimates Mazorca’s future resources to reach 1.5 million barrels with a 36% Probability of Success (PoS).
Subject to commercial discovery and production of the well, Interoil will allocate 100% of the net oil operating income to repay the investments.
Upon closing the investment payments, net operating income is planned to be divided according to Interoil’s 78% stake.
For its part, Interoil also signed a deal with Velitec in Argentina to invest in the reopening of 15 wells in the Mata Magallanes Oeste (MMO) oil field.
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By GlobalDataThis includes renewal of the nearby transmission battery in Las Mesetas # 3 (LM#3), located within the YPF-owned field treatment plant.
The firm plans a downhole intervention in two wells in MMO, as well as refurbishing the surface facilities in LM#3.
Interoil said in a statement: “The gas produced will then be used to fuel surface facilities (production and treatment equipment) for the re-opening of oil production from an initial 15 wells aiming at reaching around 120 bopd, up from the current 17 bopd.”
Interoil CEO Leandro Carbone said: “We are very enthusiastic about these agreements, which squarely position the company for organic growth in a prolific hydrocarbon area in Colombia, unlock valuable oil production in Argentina, and further strengthen Interoil’s financial flexibility.”
Last year, Interoil acquired an 8.34% stake in five mature producing exploitation concessions (Santa Cruz Sur Assets) in the Argentinean Austral Basin.
Said to be highly prolific area with well-developed oil and gas infrastructure, the Santa Cruz Sur Assets comprise 12 oil and gas fields with significant production from Upper Jurassic Tobifera and Lower Cretaceous Springhill.
