PetroMagdalena Energy has signed a letter of intent to farm out 30% of the Santa Cruz block in Colombia, in which it holds a 100% interest.
Under the contract, the company will carry 60% of the first exploratory well and 45% of the second exploratory well.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The firm will begin drilling the first well in the fourth quarter of the year at an estimated cost of $15m on receipt of the environmental permit.
PetroMagdalena will retain a 70% working interest in the block, which is located in the Catatumbo Basin, and will remain as operator.
PetroMagdalena Energy CEO Luciano Biondi said that the farm-out agreement diversifies the firm’s exploration risk and frees up $8m-9m of the funding allocated to the Santa Cruz block in this year’s budget.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
