La Cortez Energy Colombia, a unit of La Cortez Energy, has transferred its 50% participation right in the Putumayo-4 Block under a joint operating agreement (JOA) to Petroleos del Norte (Petronorte), a subsidiary of PetroLatina Energy, which is the operator of the Colombian block.
The company received the $4.1m in cash that it had previously given to Petronorte under the JOA, and which includes $2.67m to support a portion of Petronorte’s guarantee in favour of the Agencia Nacional de Hidrocarburos.
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La Cortez president Nadine C Smith said the company intends to maximise cash flow from operations and continue development of its interest in the Maranta block.
"Together with our partner Vetra Exploracion y Produccion Colombia S.A., we will also be actively engaged with Ecopetrol in negotiating the terms of a restructuring of the contract covering the two fields we operate through Avante Colombia in the Catatumbo.
"The transfer of our interest in Putumayo-4 has generated significant cash for La Cortez that will be redeployed into our primary producing assets on the Maranta block.
"The transfer also eliminates significant capital obligations over the next twelve months for the seismic acquisition and drilling work commitments required in connection with the terms of the Putumayo-4 exploration licence."
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By GlobalDataThe company intends to use the proceeds to fund cost associated with the drilling of the Agapanto-1 well on the Maranta block in Colombia.
La Cortez has also implemented a corporate reorganisation to reduce future administrative overheads, of which Upside Energy & Mining Services has been put in charge of managerial operations.
