Latin America-focused Global Energy Development announced Monday that it has agreed a farm-out deal with Everest Hill Energy Group that will see Everest acquire a 50-percent stake in its Bolivar license in Colombia.
The deal will see Everest pay $5 million along and fund certain work on the Bolivar association contract area in the Middle Magdalena Basin in return for its 50-percent stake. Work funded by Everest will include:
The re-entering and hydraulic fracture, within one year of the agreement, of potential formations in two existing wells within the contract area.
The drilling and completion of one new well in the contract area within two years
Global Energy Managing Director Stephen Voss commented in a company statement:
"The company is very keen to re-commence its activities in the Middle Magdalena Basin. This agreement not only provides us with the funding for a three-well progam but it also allows us to share the risks as we jointly develop the company's largest asset base."
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