ANH awarded seven additional exploration and production contracts at the same time, including, amongst others, two to each of BHP Billiton and HOCOL (Maurel & Prom) and one to Occidental Petroleum Corp. This highlights the resurgent appeal of Colombia to the international oil and gas industry.
The license in which Taghmen has obtained an interest is known as Midas and it is situated in the Middle Magdalena Valley Basin, adjacent to producing fields.
Taghmen is the operator of the Midas license and holds a 70% interest. It is planned to shoot and reprocess approximately $1.5 million of 2D seismic late in 2006. Several leads have been identified which provide the potential for recoverable reserves of up to 90 million barrels (63 million net to the Company).
The initial work program for Midas covers a six year time frame. It is possible to relinquish a portion of the license at the end of each year.
The license will be governed by a newly updated ANH contract, which eliminates the Colombian Government s right of back in and reduces the level of taxation from that which previously existed.
The Company now has 30 days to enter into the license agreement for Midas and establish the appropriate corporate structure for holding that license.
Nicholas Gay, CEO of Taghmen Energy Plc commented:
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